Strong Demand for Luxury Homes and Entry Level Properties Has Pushed the Median Home Price up 3% in 2019
After years of strong run-up in the Lake Tahoe real estate market, we are seeing market normalization take hold. This does not signify a downturn as is overstated in the media but reflects a slowing compared to the extraordinary market performance over the last few years.
2018 was a record setting year for Tahoe real estate sales in terms of volume, pricing and luxury homes sales. 2019 started off a bit rocky due to severe weather but as we entered the summer selling season, we saw strong demand and limited inventory at most price points, which helped push the median home price upwards. This past summer we saw sellers testing pricing limits with little success as buyers were looking for value and were happy to pass on overpriced homes, which resulted in many price reductions throughout the year and slightly longer marketing times.
Lake Tahoe Real Estate Market Report October 2019 Highlights
- The median home price is up 3% at the end of October to $741,000
- Luxury home sales account for 29% of all sales in 2019
- High sale for 2019 is a $37M Tahoe City lakefront, Oliver Luxury Real Estate represented the buyer
- Gray’s Crossing sales volume is up 42% over 2018 with the median home price up 15% to $1.58M
- In Lahontan, the average home price is up 12%, the median is up 21% and the average price per square foot is up 8.6% to $650.42. This large jump is mostly due to a higher volume of new construction home sales.
- 27 Martis Camp luxury homes have sold this year with an average price of $5.5M which is up 5%, median home price is up 9% to $5.1M and the average price per sqft is up 3% to $1,127.64 per square foot.
Strong Demand for New Construction Homes and Popular Locations
Demand for new construction homes, nicely remodeled homes and properties with high demand locations was strong in 2019 which helped push the median home price up 3% to $741,000 at the end of October. Inversely, dated homes and properties located in less desirable areas were more difficult to sell as buyers are price sensitive when considering these properties.
Year over Year Lake Tahoe, CA Real Estate Market Conditions and Value Trends
Jan – October 2019 Statistics
- 862 Single Family Home Sales Down 7%
- Avg. Marketing Time: 65 Days Up 1.5%
- Avg. List to Sold Discount: 4.4% Up 18%
- Total Sales Volume: $986M Down 14%
- Average Price: $1.15M Down 8%
- Median Price: $741K Up 3%
- 4 REO & Short Sales Down 33%
- 16 Sales Below $300K Even
- 249 Sales over $1M Down 7%
- 51 Sales over $3M Down 29%
- High Sale Price: $37M Down 8%
- Low Sale Price: $110K Down 35%
Jan – October 2018 Statistics
- 923Single Family Homes
- Average Marketing Time: 64 Days
- Avg. List to Sold Discount: 3.6%
- Total Sales Volume: $1.15B
- Average Price: $1.25M
- Median Price: $722K
- 6 REO & Short Sales
- 16 Sales Below $300K
- 267 Sales over $1M
- 72 Sales over $3M
- High Sale Price: $40M
- Low Sale Price: $168K
Market Normalization Expected to Continue into 2020
Currently there are 99 single family homes in escrow with an average price of $1,219,882 and a median price of $745,000. This shows me that we should have a strong finish to the year and that we will be set up for continued demand for Tahoe real estate as we enter the winter. In the new year, I expect buyers to remain focused on value which will continue the normalization trend. I expect that inventory levels will rise in the new year, which will be welcomed compared to the inventory constrained market of 2019. With inventory expected to rise there will be strong demand for the best homes and inversely, demand for lesser homes will fall. In general, this will further shift the market into a buyer’s market as is typical during a normalization period.
Lake Tahoe Real Estate October 2019 Market Report Sales Chart
Lake Tahoe Real Estate October 2019 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.
Lake Tahoe Real Estate Market Report Archive
- View All Tahoe Real Estate Market Reports
- October2018 Lake Tahoe Market Report
- October 2017 Lake Tahoe Market Report
Contact Dave Westall – Lake Tahoe Real Estate Agent
Do you have questions about Lake Tahoe Real Estate? Please call me at (530) 448-9882 if you would like to discuss Lake Tahoe real estate market conditions in more detail or to talk about how we can achieve your real estate goals together.
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