Coldwell Banker - 2021 Real Estate Market Report
North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums
Activity January – February 2021
Residential Sales Summary 2021
Total Residential Sales:
February activity was very similar to what we saw in January . . . a small number of transactions compared to summer and fall, but a large number of transactions for the time of year and a lot of activity on each home that enters the market.
Ninety-four homes closed escrow in February. That’s the largest number of February sales in the last 10 years. It marks a 13% increase in the number of transactions compared to February 2020 (83 sales), and 24% more sales than the 10-year average for February (76 sales).
So far, year to date, 199 residences have sold. That’s a 16% increase over the same period in 2020 (172 sales) and 28% above the 10-year average for the period.
Median and Average Sales Prices: These numbers are changing dramatically. For the period January through June 2020, the median sales price was $674,500 (up slightly from $669,000 in 2019) and the average sales price was $986,430 (up slightly from $975,296 in 2019). In the second half of 2020 we jumped to a median of $825,000 (up 22% compared to the first half of the year) and an average of $1,209,097 (up 23%). In February 2021, the median price was $1,018,995 (51% higher than the first half last year) and the average price was $1,603,509 (63% higher than the first half of 2020).
When you isolate to single family homes the numbers are even more extreme. In February 2020, 54 single family homes sold with a median price of $704,500, and an average price of $951,549. In February 2021, 72 single family homes sold (33% more), with a median price of $1,272,500 (higher by 81%, and an average price of $1,853,611 (higher by 95%). This is a small sample size, but is an eye opener to the market dynamics we have seen the last year.
Active Residential Inventory:
Active Listings: Supply? What supply?? The record shattering sales in 2020 burned through the inventory of homes on the market. Even though there were 20% more new listings in 2020 than there were in 2019, active inventory started 2021 at record lows. In addition, the number of new listings in January and February has been lower than it was to for the same period in 2020. There is very little to choose from, and still very strong demand.
There are currently 134 residences actively for sale (69 single family homes and 65 condos). That’s about 25% of the number of single family homes you would typically expect at this time of year, and 50% of the condos.
221 new listings hit the market in the first 2 months of this year, compared to 231 in 2020.
Current Pending Sales: There are currently 192 residences in contract. For the second month in a row 103 residences went into contract.
Current inventory represents less than 1.5 months of supply, relative to the last 30 days of activity.
Sales Under $500,000: YTD, residences priced under $500,000 represented 12% of sales or 24 properties sold. For the same period in 2020, 27% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: YTD 88 residences have sold between $500,000 and $999,999, representing 44% of total sales. For the same period in 2020, 48% of sales were in this price range.
Luxury Home Sales Over $1 Million: 87 properties have sold over $1 million, representing 43% of total sales. In January 2020, just 25% of sales were over $1 million.
Coldwell Banker Ranks #1: Among all brokerages in North Lake Tahoe and Truckee, Coldwell Banker continues to rank #1 in total number of sales. For the previous 12 months, Coldwell Banker represented 12.63% of sales. This represents 18% more transactions than our next closest competitor (10.7% of sales).
What’s Going On Looking Forward?
The one thing we can say with confidence is demand is MUCH stronger than supply right now. 5, 10, even 15 offers are common when a new house comes on the market. Each sale in a neighborhood seems to set another high-water mark for pricing. The number of transactions this year will hinge on supply, because the demand is there. Continued appreciation throughout the year seems like a safe bet.
Sometimes dramatic jumps in pricing motivate people to sell their home. You know the conversation, “the neighbors just got how much for their house??!! Maybe we should think about selling!” In the second half of 2020 we saw some of this phenomenon as the number of listings surged through the normal summer listing season and well into the fall (when new listings typically drop off). That allowed for an extremely large number of transactions. Will that trend continue in 2021? Or, will people hang onto one of their best performing investments causing the already low supply to dwindle further? We’ll have to wait and see.
Why are we seeing such extraordinary dynamics in our housing market?
The residential real estate market is solid around most of the country for one primary reason . . . right now, HOME is more important than ever. People are spending more time in their homes than they have before.
In Tahoe, we have a major amplifier to that. The profile of our typical buyer has evolved. People have always wanted to be in Tahoe, but that typically meant buying a vacation home (historically 80% of homes here have been non primary residents). People from the tech industry started to have the ability to move up here, permanently, as much as 20 years ago. In the last 10 years, high speed internet started to allow other professionals to make Tahoe and Truckee home. Even Doctors and Lawyers could consolidate their live meetings into a couple days a week in the Bay Area, and then work from home (in Tahoe) the other days, while keeping their family here full time. The Coronavirus has accelerated that evolution, as people across many industries have been forced to use technology to work from home, and realized they can do it productively. Also, the businesses themselves are now far more comfortable with employees working remotely. This has driven demand for homes in Tahoe to all new levels. People want to be here now . . . and, as long as Lake Tahoe and Truckee is more affordable than the Bay Area, that trend will continue.
Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.
Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data's accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 1908304