The Lake Tahoe Real Estate Market Has Stabilized With Supply and Demand in Balance
Over the last 60 days, the North Lake Tahoe, CA real estate market has swiftly pivoted from a strong seller’s market to stabilization with supply and demand in equilibrium. Rising mortgage interest rates, the Fed battling inflation, talks of an impending recession, and the ongoing war in Ukraine have cooled the white-hot flames of the pandemic-driven market and returned us to more traditional market conditions. These factors have significantly reduced buyer activity resulting in longer marketing times amid rising inventory levels. Luckily, the number of homes for sale in any given neighborhood remains low, which has stabilized pricing.
Year over Year Market Conditions and Value Trends
June 2022 Statistics
- 97 Single Family Home Sales Down 15%
- Marketing Time: 14 Days Down 33%
- List to Sold Ratio: 103% Even
- Total Sales Volume: $145M Down 18%
- Average Price: $1.49M Down 3%
- Median Price: $1.15M Up 2%
- 0 REO & Short Sales Even
- 1 Sale Below $500K Down 50%
- 61 Sales over $1M Down 10%
- 5 Sales over $3M Down 50%
- High Sale Price: $9.2M Up 3%
- Low Sale Price: $451K Up 24%
June 2021 Statistics
- 114 Single Family Home Sales
- Marketing Time: 21 Days
- List to Sold Ratio: 103%
- Total Sales Volume: $176M
- Average Price: $1.54M
- Median Price: $1.12M
- 0 REO & Short Sales
- 2 Sales Below $500K
- 68 Sales over $1M
- 10 Sales over $3M
- High Sale Price: $8.9M
- Low Sale Price: $365K
Buyers No Longer Face Intense Bidding Wars
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.
It’s Still a Great Time To Be a Seller
If you are considering selling your Tahoe property, this remains a good time to list a 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 unwilling to pay over market value, so great care is needed when pricing a Tahoe property. Homes perceived as a good value are selling quickly, while overpriced properties 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 June 2022 Market Report Sales Chart
Lake Tahoe Real Estate June 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: 4.2 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)
- 426 Sales in the Last 6 Months
- 71 Sales per Month
- 2.4 Sales Per Day
- 298 Active Listings
- 298 Listings / 71 Sales Per Month = 4.2 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 95 pending homes in escrow with an average list price of $1.9M and a median list price of $1.19M, which shows that Tahoe home pricing remains on sound footing. Fewer sales are taking place; inventory is rising, l which has led to market stabilization. Inventory levels have jumped 67% over the last 60 days, which is typical for this time of the year, but buyer activity has slowed, so new listings are taking longer to sell.
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.
Lake Tahoe Real Estate Market Report Archive
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