Coldwell Banker - 2021 Real Estate Market Report - North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums
Activity January – April 2021
Residential Sales Summary 2021
Total Residential Sales: We are now at 11 consecutive months in which we have set a new record for number of sales in that month. 128 homes sold in April, representing the largest number of April sales on record. It’s more than double April 2020 (62 sales in a month dramatically impacted by COVID), and 38% more than the 10 year average for April (93).
Year to date, we have seen 462 sales. This marks 48% more sales than the same period in 2020 and 33% more than the 10 year average for the period.
Median and Average Sales Prices: These numbers continue to increase 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 2020) and an average of $1,209,097 (up 23%).
So far, in 2021, the median sales price is $965,000 (43% higher than the first half of 2020) and the average price is $1,519,182 (54% higher than the first half of 2020). For April alone, the median price was $1,045,150 and the average was $1,356,348.
When you isolate to single family homes the numbers are even more extreme. In January to April 2020 there were 224 single family home sales. The median price was $714,500 and the average was $1,128,707. In January to April 2021 there were 316 single family home sales (up 41%), the median price was $1,200,050 (up 68%), and the average price was $1,850,677 (up 64%). In April, the median was $1,342,000 and the average was $1,720,641.
Active Residential Inventory:
Active Listings: There are currently 136 residences actively for sale (93 single family homes and 43 condos). This is about 1/3 of the active inventory we’ve typically seen at this time of year over the last 5 years.
That’s only part of the story though. 568 new listings have come on the market through the end of April which is 14% above the 5 year average for the period (495) and slightly above the 10 year average (562). So, it’s not supply that is particularly tight relative to recent years. It’s the extremely strong demand that is keeping active inventory at record lows.
Current Pending Sales: There are currently 219 residences in contract (slightly above 215 last month). 141 residences went into contract in April (up from 134 in March).
Current inventory represents 1 month of supply, relative to the last 30 days of activity.
Sales Under $500,000: Through April, residences priced under $500,000 represented just 11% of sales or 49 properties sold. For the same period in 2020, 27% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: Year to date 195 residences sold between $500,000 and $999,999, representing 42% of total sales. For the same period in 2020, 48% of sales were in this price range.
Luxury Home Sales Over $1 Million: 218 residences have sold over $1 million, representing 47% of total sales. 77 of those sales were over $2 million including 18 over $5 million. For the same period in 2020, just 25% of sales were over $1 million. 26 of those sales were over $2 million and 5 were over $5 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 11.7% of sales. This represents 9% more transactions than our next closest competitor.
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 is common when a home 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 inventory to dwindle further? We’re about to find out as the ski areas shut down and we move into what is traditionally our busiest season of the year for listings and sales.
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 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