Lake Tahoe Real Estate Market Returns to Stabilized Conditions
The Lake Tahoe, CA real estate market has been softening over the last 3 months, and we have decidedly seen a shift from a strong seller’s market to stabilized market conditions with supply and demand in balance. Inventory has risen during the summer of 2022, but we are still at historically low inventory levels, which has helped stave off the erosion of home prices. Over the last 7 days, mortgage interest rates have fallen 44 basis points, and today the average 30-year fixed interest rate was hovering around 5.27%, with some lenders quoting rates below 5%. Falling rates are a positive signal for the market as buyers became apprehensive about purchasing homes when rates were over 6%. With mortgage rates falling to a palatable level, we should see an uptick in buyer demand.
Year over Year Market Conditions and Value Trends
July 2022 Statistics
- 83 Single Family Home Sales Down 45%
- Marketing Time: 19 Days Up 19%
- List to Sold Ratio: 99% Down 4%
- Total Sales Volume: $159M Down 46%
- Average Price: $1.92M Down 1%
- Median Price: $1.22M Up 1%
- 0 REO & Short Sales Even
- 0 Sale Below $500K Down 100%
- 58 Sales over $1M Down 38%
- 13 Sales over $3M Down 28%
- High Sale Price: $8.3M Down 19%
- Low Sale Price: $600K Up 50%
July 2021 Statistics
- 151 Single Family Home Sales
- Marketing Time: 16 Days
- List to Sold Ratio: 103%
- Total Sales Volume: $293M
- Average Price: $1.94M
- Median Price: $1.21M
- 0 REO & Short Sales
- 2 Sales Below $500K
- 93 Sales over $1M
- 18 Sales over $3M
- High Sale Price: $10.2M
- Low Sale Price: $400K
Purchasing Power is Shifting Back to Buyers
Despite the uncertainty of the economy, the Lake Tahoe housing market remains on sound footing, creating an excellent opportunity to buy into a historically strong market. A stabilized market is fantastic news for buyers as they no longer have to compete in heated bidding wars, paying well over the asking price to get an offer accepted. Now, buyers can be patient, find the perfect house and confidently make a purchase decision. This is the scenario that Tahoe buyers have been waiting for.
Home Prices Remain Near All Time Highs, Creating a Great Opportunity for Sellers
If you are considering selling your property, this remains a good time to list a Tahoe home for sale as prices remain strong and buyers are eager to purchase property in desirable neighborhoods, especially when the house is newer or in good condition. Buyers have become price sensitive given the noted market conditions and are unwilling to pay over market value, so great care is needed when pricing a Tahoe home for sale. Properties perceived as a good value are selling quickly, while overpriced homes stagnate with minimal showings, often leading to price reductions. Selling Lake Tahoe real estate has become more labor intensive, but you can achieve your goals with the right Realtor and a solid plan.
Lake Tahoe Real Estate July 2022 Market Report Sales Chart
Lake Tahoe Real Estate July 2022 Sales Volume Chart
*North Lake Tahoe, CA and Truckee Single-Family Home sales including lakefronts. Data is taken from the Tahoe-Sierra Board of Realtors, MLS Areas 1-9.
Absorption Rate: 4 Months of Inventory = Balanced Market
The term absorption rate refers to a metric used in a specific real estate market to evaluate the rate at which available homes are sold during a given period of time. Here are the metrics and absorption rate for the North Lake Tahoe, CA and Truckee real estate market.
Absorption Rate (single-family homes)
- 447 Sales in the Last 6 Months
- 74.5 Sales per Month
- 2.48 Sales Per Day
- 296 Active Listings
- 296 Listings / 74.5 Sales Per Month = 4 Months of Inventory = Balanced Market
- 1 to 3 Month Supply of Inventory = Seller’s Market
- 4- 6 Months of Inventory = Balanced Market
- 6+ Months of Inventory = Buyer’s Market
Currently, there are 104 pending homes in escrow with an average list price of $1.6M and a median list price of $1.16M, which shows that Tahoe home pricing remains on sound footing. Fewer sales are taking place than a year ago, inventory levels have risen but remain historically low, and marketing times have slightly increased due to slower buyer activity, which has led to market stabilization. Inventory levels have jumped 66% over the last 60 days, which is typical for this time of the year. Still, buyer activity has slowed, so new listings are taking longer to sell, leading to stabilization within the market.
A Stabilized Market Provides Opportunity for Buyers and Sellers Alike
Although the frantic market conditions of the last few years have subsided, the Tahoe real estate market remains on sound footing, creating opportunities for buyers and sellers alike. We have entered a new chapter where fewer buyers exist in the market, inventory levels have increased, and home prices have stabilized. At this point, we do not anticipate above-average inventory increases, which should keep pricing stable in the second half of the year.
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July 2021 Real Estate Market Report
July 2020 Real Estate Market Report
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