Lake Tahoe Real Estate Market Sets Records in Q1 with the Median Home Price Surging 57%
The record-setting first quarter of 2021 was energized, fueled by tenacious demand and finite inventory, resulting in a 37% jump in sales volume and a 57% boost to the median home price. Buyers have a relentless determination to purchase Tahoe properties and have shown fortitude when battling it out in routine multiple offer situations.
With summer on the horizon and the start of the selling season taking place now, buyers want to make sure that they are in a position to purchase vacation homes before the heat of summer. This is not an easy task as new inventory is rapidly absorbed, and even the strongest offers are often outbid by steadfast buyers, evidenced by the median home price surging to $1,135,000, which is a new record. In Q1, Tahoe luxury homes made up 45% of all sales which is simply astounding as it shows that buyers are willing to pay a premium for high-quality homes located in the best Tahoe neighborhoods.
Q1 2021 Highlights
- Unit volume up 37%
- Dollar Volume up 122% to $452M
- Median Home Price up 57% to $1,135,000
- Luxury Home sale volume is up 157% and these sales make up 45% of all sales in Q1
- Sales volume of $3M+ homes is up 158%
- High sale: $31M new construction Tahoe lakefront in Homewood, CA
*year over year stats
Luxury Home Sales Dominate Q1
The average sale price for single-family homes in Q1 2021 was $1,890,000, which is an extraordinary number highlighted by 31 sales over $3M with an average price of $6.5M and a high sales price of $31M for a new construction lakefront estate on the magical west shore of Lake Tahoe. 45% of all single family home sales in Q1 were priced over $1M, which is a new record. These are remarkable stats and highlight the tenacity of the 2021 market.
Year over Year N. Lake Tahoe, CA Real Estate Market Conditions and Value Trends
Q1 2021 Statistics
- 240 Single Family Home Sales Up 37%
- Marketing Time: 43 Days Down 116%
- Avg. List to Sold Disc: 0% Down 460%
- Total Sales Volume: $452M Up 122%
- Average Price: $1.89M Up 62%
- Median Price: $1.14M Up 57%
- 1 REO & Short Sale Even
- 6 Sales Below $400K Even
- 131 Sales over $1M Up 157%
- 31 Sales over $3M Up 158%
- High Sale Price: $31M Up 226%
- Low Sale Price: $275K Down 11%
Q1 2020 Statistics
- 175 Single Family Home Sales
- Marketing Time: 93 Days
- List to Sold Discount: 4.6%
- Total Sales Volume: $204M
- Average Price: $1.17M
- Median Price: $728K
- 1 REO & Short Sales
- 6 Sales Below $400K
- 51 Sales over $1M
- 12 Sales over $3M
- High Sale Price: $9.5M
- Low Sale Price: $310K
Lake Tahoe Real Estate Q1 2021 Market Report Sales Chart
Lake Tahoe Real Estate Q1 2021 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.
Only 21 Days of Inventory
The market gets more interesting when we look at the absorption rate, how quickly homes are being purchased. In the last 6 months, we saw 740 single-family home sales, which is equal to 123.33 sales per month or 4.11 sales per day. As of today (04/13/2021), there are 86 active single-family listings. 86/4.11 = 21 days of inventory. A 1 to 3 months supply of inventory is considered a seller’s market, and 21 days of inventory would be considered an extreme seller’s market with high rates of appreciation and regular multiple offer situations. Currently, there are 124 pending homes in escrow with an average list price of $1.8M and a median list price of $1.4M, which shows that the market remains bullish as pricing continues to rise in this inventory-constrained market.
Sell Your House & Likely Set a Record
If you’re considering selling your Tahoe/Truckee property, you chose a good year to do so as buyer demand is feverish and inventory is shackled, creating an opportunistic time to sell your home and possibly generate a record sale in your neighborhood. As we enter the spring selling season, inventory levels will rise, but it will take significant inventory to satiate buyer demand.
When Will the Lake Tahoe Real Estate Market Slow Down?
For the market to flatten and stabilize, we would need 4-6 months of inventory. Currently, we have a 21 day supply of inventory, which means that we need 614% additional listings for pricing to stabilize or 528 single-family listings. This seems unlikely given the current market conditions and strong economic outlook. 528 new listings would be the equivalent of 18 new homes coming on the market every day for a month, which has an extremely low probability of happening in the near term.
As Lake Tahoe thaws out, there will be a noticeable rise in inventory, a theme that will continue into autumn. Buyers with a firm grasp on market conditions, the level of competition, and have a a solid action plan will be able to move swiftly and purchase their dream home. We are here to help you achieve your goals, and each month I will monitor market conditions and provide insight. Please reach out if you have any questions or if you wish to discuss your goals and put a plan together.
Lake Tahoe Real Estate Market Report Archive
- View All Tahoe Real Estate Market Reports
- Q1 2020 Lake Tahoe Market Report
- Q1 2019 Lake Tahoe Market Report
Contact Dave Westall – Lake Tahoe Real Estate Agent
As the premier Tahoe Realtor, I’m here to help, provide insight, and help you achieve your real estate goals. Let’s schedule a Zoom meeting to chat and discuss how I can be of assistance.
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Dave Westall, Realtor
Corcoran Global Living
CA DRE# 01796995
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