Tahoe Real Estate Sales Continue to Set Records in Q2
Lake Tahoe Real Estate Q2 2021 Market Report
With summer underway and Bay Area Buyers Flocking to Lake Tahoe, it’s not surprising that we continue to set records with each passing month as inventory remains constrained and buyer demand is white-hot. Q2 has closed, and the statistics are nothing short of amazing. In the second quarter, luxury home sales were up 158% over last year, but the most impressive record is that luxury home sales made up 59% of all sales in Q2! That is the highest ratio of luxury home sales that Tahoe has ever seen and speaks volumes about the demand for high-quality vacation homes in the Tahoe market.
Q2 2021 Highlights
- Number of Homes Sold up 6%
- Total Dollar Volume up 73%
- Median Home Price up 67% to $1,200,000
- Luxury Home sale volume is up 158%, and these sales made up 59% of all sales in Q2
- Sales volume of $3M+ homes is up 170%
- 7 Sales over $7M with a high sale of $11.1M
*year over year stats
Year over Year Market Conditions and Value Trends
Q2 2021 Statistics
- 283 Single Family Home Sales Up 6%
- Marketing Time: 24 Days Down 63%
- Avg. List to Sold Disc: ↑3% Down 175%
- Total Sales Volume: $472M Up 73%
- Average Price: $1.67M Up 63%
- Median Price: $1.2M Up 67%
- 0 REO & Short Sales Down 100%
- 1 Sales Below $400K Down 1300%
- 178 Sales over $1M Up 158%
- 27 Sales over $3M Up 170%
- High Sale Price: $11M Up 42%
- Low Sale Price: $365K Up 87%
Q2 2020 Statistics
- 267 Single Family Home Sales
- Marketing Time: 64 Days
- List to Sold Discount: 4%
- Total Sales Volume: $273M
- Average Price: $1M
- Median Price: $720K
- 1 REO & Short Sales
- 14 Sales Below $400K
- 69 Sales over $1M
- 10 Sales over $3M
- High Sale Price: $7.8M
- Low Sale Price: $195K
Lake Tahoe Real Estate Q2 2021 Market Report Sales Chart
Lake Tahoe Real Estate Q2 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.
Absorption Rate: Only 53 Days of Inventory (that’s not enough)
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 time period. Here are the metrics and absorption rate for the North Lake Tahoe, CA and Truckee real estate market.
- 523 Sales in the Last 6 Months
- 87 Sales per Month
- 9 Sales Per Day
- 158 Active Listings
- 158 Listings / 3 Sales Per Day = 53 Days of Inventory or 1.8 months
- 1 to 3 Month Supply of Inventory = Seller’s Market
- >2 Months of Inventory = Strong Seller’s Market
- High Rates of Appreciation and Regular Multiple Offer Situations
- 4- 6 Months of Inventory = Balanced Market
Currently, there are 189 pending homes in escrow with an average list price of $1.72M and a median list price of $1.15M, which shows that the market remains bullish as pricing continues to rise in this inventory-constrained market.
Sell Your House & Exceed Your Expectations
If you’re considering selling your Tahoe/Truckee property, you chose a good year to do so as buyer demand is vigorous and inventory is constrained, creating an opportunistic time to sell your home and possibly generate a record sale in your neighborhood. As we enter the summer selling season, inventory levels will rise, but it will take significant inventory to satiate buyer demand. This is possibly the best time in history to sell a Tahoe property, so if you are considering moving to the coast or to another destination resort community, we should engineer a custom plan to ensure your success.
When Will the Lake Tahoe Real Estate Market Slow Down?
For the market to stabilize, we would need 4-6 months of inventory or 357 active listings. Currently, we have a 53 day supply of inventory, which means that we need 126% additional listings for pricing to stabilize or 199 new single-family listings. This seems unlikely given the current market conditions and economic outlook. Over the last few months, we have seen inventory levels rise, which is typical for the summer selling season, and we have moved from under one month of inventory to just under two months of inventory. Supply cannot keep up with demand, so we remain in a strong seller’s market.
We are watching autumn for signs of a softening market. As kids go back to school with events and sports returning to normal, it seems that some demand pressure will recede. Unfortunately, in the fall, we typically see inventory levels fall, so it would seem that even though demand might soften, inventory will remain constrained, which will continue to promote a constrained seller’s market. Although pricing will eventually mellow out, it seems that we might be looking to the fall of 2022 before we see supply and demand come into balance.
The summer selling season is here and inventory is not keeping pace with demand, which is great for sellers but makes things challenging for some of our clients. Buyers with a firm grasp on market conditions, the level of competition, and are equipped with an action plan will be able to move swiftly and purchase their dream home. We are here to help you achieve your goals, so please reach out if you have any questions or if you want to schedule a home tour.
Lake Tahoe Real Estate Market Report Archive
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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