Buyer Demand for Tahoe Real Estate Continues to Exceed Supply
Now that we are 5 months into the 2017 sales year, it is apparent that there is a severe lack of Lake Tahoe real estate inventory. Buyer demand is fevered and with minimal inventory, we are seeing the average marketing times shrink significantly and the median home price is on the rise. With the lack of inventory, we are seeing a reduction in sales volume which is causing other indicators (see below) to show false negatives. The bottom line is that there is not enough inventory to satisfy buyer demand.
Buyers are anxious to purchase Lake Tahoe property, but until recently there has been extremely limited inventory which has caused an 18% decrease in sales volume. When good quality homes come on the market they are getting lots of attention which has caused the median home price to rise 5% in the first five months of the year.
Currently, there are 127 homes under contract with an average price of $886,000 and there are 25 homes priced above $1M which shows me that the North Lake Tahoe markets are heating up going into the 4th of July weekend. The high number of $1M+ escrows show me that the luxury market remains solid and will continue to pull the other market segments up as the year progresses.
The sub $600K price point is extremely active and buyer activity is through the roof. The average marketing time for all Tahoe/Truckee homes is 97 days, but the sub $600K price point has an average marketing time of only 26 days! Although inventory levels are increasing at a slow rate, we continue to see excess demand. If you are looking at homes in the sub $600K price point you will most likely experience strong competition and multiple offer scenarios.
Lake Tahoe is Within Inches of the Legal Limit
Since October 2016, over 139 billion gallons of water have been added to Lake Tahoe! The lake is FULL and the current lake level is at 6,228.73’ which is 5.73’ above the natural rim and only .27’ away from the legal limit of 6,229’. The Tahoe City Dam is currently releasing 1,200 cubic feet of water per second into the Truckee River! A full lake drives demand for lakefront properties and increases recreation activity at Lake Tahoe which is a positive for the real estate markets. A full lake and memories of a historic winter will help bolster the Tahoe real estate markets.
Year over Year Lake Tahoe, CA Real Estate Market Conditions and Value Trends
Jan – May 2017 Statistics
- 317 Single Family Home Sales Down 18%
- Avg. Marketing Time: 97 Days Down 18%
- Avg. List to Sold Discount: 4.4% Up 23%
- Total Sales Volume: $313M Down 19%
- Average Price: $988 Down 5.5%
- Median Price: $652K Up 5%
- 7 REO & Short Sales Down 42%
- 11 Sales Below $300K Down 35%
- 70 Sales over $1M Down 28%
- 14 Sales over $3M Down 48%
- High Sale Price: $15M Up 41%
- Low Sale Price: $140K Down 31%
Jan – May 2016 Statistics
- 386 Single Family Homes
- Average Marketing Time: 119 Days
- Avg. List to Sold Discount: 3.4%
- Total Sales Volume: $387M
- Average Price: $1.046M
- Median Price: $620K
- 12 REO & Short Sales
- 17 Sales Below $300K
- 97 Sales over $1M
- 27 Sales over $3M
- High Sale Price: $8.9M
- Low Sale Price: $202K
*North Lake Tahoe, CA and Truckee, CA Single Family Home sales including lakefronts. Data is taken from the Tahoe-Sierra Board of Realtors, MLS Areas 1-9
Lake Tahoe Real Estate Market Report Sales 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.
Year Over Year Lake Tahoe Real Estate Sales Volume Chart
Past Lake Tahoe Market Reports
- View All Tahoe Real Estate Market Reports
- May 2016 Lake Tahoe Market Report
- May 2015 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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