A Record Setting Year for Lake Tahoe Real Estate Fueled by Robust Luxury Sales
2016 was an amazing year for the North Lake Tahoe, CA, and Truckee real estate markets! Total sales in the Tahoe Sierra MLS were $1.375 billion in 2016, marking the 4th consecutive year of $1B+ in sales (another record). We saw 1,103 single family homes trade hands and setting the sales volume record, a 9% jump over 2015. The average home price was up 14%, distressed sales are down significantly and luxury home sales continue to be the backbone of the Tahoe real estate market with a 36% increase in volume over 2015.
The luxury segment of the market, specifically sales within the Martis Camp subdivision are driving average home pricing higher. 65% of the sales over $3M took place within Martis Camp, which shows that luxury buyers are focused on new construction mountain modern homes within this amenity rich gated golf course community. In September 2016, Oliver Luxury Real Estate (seller representation) closed the sale of 1970 West Lake Blvd at $17.5M, the highest priced lakefront sale since 2008. Wealthy buyers are feverishly investing in Tahoe which is why the volume of luxury home sales was up 36% in 2016.
The median home price has been increasing since 2012 and was up 10% in 2016. Although we have seen significant appreciation over the last 4 years, the North Tahoe, CA, and Truckee real estate markets remain 12% below the height of the market which occurred in 2006. The median home price is more reflective of the overall health of the market and shows that we still have some ground to make up, which creates an opportunity for buyers purchasing into the Tahoe markets.
Year over Year Market Conditions and Value Trends
- 1,103 Single Family Home Sales Up 9%
- Avg. Marketing Time: 90 Days Down 7%
- Avg. List to Sold Discount: 3.5% Even
- Average Price: $986K Up 14%
- Median Price: $620K Up 10%
- 24 REO & Short Sales Down 27%
- 30 Sales Below $300K Down 40%
- 245 Sales over $1M Up 36%
- 65 Sales over $3M Up 32%
- High Sale Price: $17.5M Up 43%
- Low Sale Price: $192K Up 48%
- 1,002 Single Family Homes
- Average Marketing Time: 97 Days
- Avg. List to Sold Discount: 3.5%
- Average Price: $847K
- Median Price: $556K
- 33 REO & Short Sales
- 50 Sale Below $300K
- 156 Sales over $1M
- 44 Sales over $3M
- High Sale Price: $9.95M
- Low Sale Price: $99.5K
A new year is upon us and only time will tell what the 2017 Lake Tahoe real estate markets will do. I anticipate a fairly strong year of sales volume due to demand projections and low inventory which should lead to modest appreciation. Some softening is expected to take place due to rising mortgage interest rates and uncertainty in the financial markets but Tahoe is expected to have a moderate year of growth. So far the winter of 2017 is off to a good start and if we have an average to slightly above average winter I would expect that demand for Tahoe vacation homes will continue to rise.
Year Over Year Lake Tahoe Real Estate Sales Chart
*North Lake Tahoe and Truckee Single Family Home sales including lakefronts. Data is taken from the Tahoe-Sierra Board of Realtors, MLS Areas 1-9.
Year Over Year Lake Tahoe Real Estate Sales Volume Chart
Past Lake Tahoe Market Reports
- View All Tahoe Real Estate Market Reports
- 2015 Year End Lake Tahoe Market Report
- 2014 Year End Lake Tahoe Market Report
Do you have questions about Lake Tahoe Real Estate? Please call me (530) 448-9882 if you would like to discuss market conditions in more detail or to talk about how I can help you achieve your real estate goals.
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David Westall, Realtor
OLIVER LUXURY REAL ESTATE
CA BRE# 01796995
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