Coldwell Banker 2022 Real Estate Market Report -North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums -Activity January through April 2022
Residential Sales Summary 2022
Total Residential Sales: Despite the extreme lack of inventory, we are still seeing a normal number of sales this winter. There were 352 residential sales through the end of April (93 in April), which is just 2% below the 5 year average (361 sales) for the period and just slightly above the 10 year average (350). Homes that come on the market are mostly selling fast, with a median of 9 days on the market YTD, and just 6 days in the month of March.
Median and Average Sales Prices: Sales prices continue to appreciate. Comparing Q1 2020 to January through April 2022, the average sales price of a single-family home has jumped from $1,168,175 to $2,275,328 (a 95% increase!), and the median has jumped from $727,500 to $1,400,000 (a 92% increase). Over 31% of single-family sales YTD were over $2 million, including 20 sales over $5 million, 11 over $10 million, and 1 over $20 million. For comparison, in Q1 2020, just 9% of sales were over $2 million, including 4 over $5 million, and 0 over $10 million.
Active Residential Inventory:
Active Listings: The spring uptick in new listings coming on the market has begun. We are up to 149 residences actively for sale (109 single family homes and 40 condos), after bottoming out around 80 in March. That said, inventory is still at the lowest levels we have seen historically (Around 20% of the 10 year average for this time of year). If you are looking to sell, there is still very little competition in most neighborhoods and most price ranges.
The 167 new listings in April marks the second lowest April total in 10 years (trailing only the lockdown month of April 2020). Overall, the number of new listings during the last 12 months is the lowest for that period in 10 years, 23% lower than the 5-year average for the period and 22% lower than the 10 year average.
Current Pending Sales: The number of pending sales is at 124 (up slightly from 120 last month). About 90 residences went into contract in April (down slightly from 95 in March). Current inventory represents a little over 1.5 months of supply relative to April activity.
Sales Under $500,000: January through April there were 26 residential sales under $500k, representing 7% of total sales. In the same period in 2021, 11% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: Year to date, 121 residences sold between $500,000 and $999,999, representing 34% of total sales. For the same period in 2021, 42% of sales were in this price range.
High End Home Sales $1,000,000 to $1,999,999: For the period 124 residences have sold between $1m - $2m, representing 35% of total sales. For the same period in 2021, homes sold in this price range represented 30% of total sales.
Luxury Home Sales Over $2 Million: 81 residences have sold over $2 million, representing 23% of sales. For the same period in 2021, 78 homes sold over $2 million, representing 17% of sales.
What’s Going On Looking Forward?
We are ready to wrap up the slower winter season and jump into summer! What kind of activity will that bring in the market? Will demand continue to outweigh supply? Or, will the tides turn and bring more balance to the market? It will be very interesting to see.
The shortage of inventory, and lack of new supply, is still the dominant feature in the market. However, there are some questions about how strong demand will be this summer. There are significant variables like inflation, interest rates, the Russia-Ukraine War, short term rental regulations, covid and mother nature (snow, fires, etc), that are going to have an impact on demand. We are very interested to see just how big an impact it is. Our expectation is that supply (new listings and inventory) will be increasing significantly over the next few months but will remain low for the time of year. If that holds true, the trend toward smaller numbers of transactions will continue. For the last month, 2 to 5 offers have been a common story on many new listings, but some properties take a little time to see offers. Sellers are still in the driver’s seat.
Placer County’s short term rental regulations are now in place. The new model includes a cap of 3,900 permits and requires some property owners, who used to be exempt, to apply for permits going forward. Truckee has officially approved their regulations which will cap the number of permits at 1,255, require a 1 year waiting period for new owners to apply, and will phase out short term rentals in multi-family housing and accessory dwelling units. If you own a short-term rental up here, definitely reach out to me so we can connect you to the right information to continue operating your rental!
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