Severe Weather, Lack of Inventory, Overpriced Homes, Stong Demand and a Vibrant Luxury Market; This Was 2019
Lake Tahoe Real Estate had a rough start in 2019 due to a severe winter which crippled roadways and dumped over 59 feet of snow in the upper elevations of Squaw Valley. Skiers rejoiced while home sellers were unnerved by the lack of showings and agents fretted over the lack of new escrows in the first quarter. People had a hard time getting to Tahoe with regular road closures and touring properties was not a priority during this severe winter which buried homes. The massive snowpack took much longer to melt than is typical which pushed the start of the selling season back 1 to 2 months thus creating inventory shortages, resulting in soft Q1 and Q2 statistics.
The 2018 market was red hot and sellers wanted to keep the pricing trend moving upwards in 2019, which resulted in most new listings being priced above the market. Unfortunately, buyers were a bit shy due to economic and geopolitical concerns which resulted in longer marketing times and price reductions. Inversely, homes that were priced in line with the market were selling quickly and close to the asking price. Overly optimistic sellers and a severe winter did not help the marketplace but as the year progressed we were able to get the market back on track.
Lake Tahoe Real Estate Year End 2019 Market Report Highlights
- In 2019 the median home price closed up 4% to $747,000 (a record high)
- Dollar volume in Q4 2019 was up 21% over Q4 2018 ($320M vs $253M)
- The number of single-family home sales was up 27.5% over Q4 2018 (309 units vs. 219 units)
- 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 38% over 2018 with the median home price up 14% to $1.57M
- In Lahontan, the average home price is up 12%, the median is up 21% and the average price per square foot is up 7.7% to $643.26. This large jump is mostly due to a higher volume of new construction home sales
- 32 Martis Camp luxury homes have sold this year with an average price of $5.4M which is up 2.7%, median home price is up 8.4% to $5.1M and the average price per sqft is up 6% to $1,175.00 per square foot
Strong Demand for New Construction Luxury Homes
Once the Tahoe real estate market got rolling in July, we saw homes selling at a swift pace as there was pent up buyer demand and limited but increasing inventory. Homes that started off being overpriced received price reductions and buyers were happy to swoop them up. In 2019 buyers had a strong appetite for new construction homes, golf course properties, and homes located in desirable locations. The Gray’s Crossing and Lahontan subdivisions had some of the highest levels of appreciation in the market with the median home price up 14% in Gray’s. In most neighborhoods, we saw increases in the average price per square foot which helped push the median home price up 4% in 2019.
Year over Year Lake Tahoe, CA Real Estate Market Conditions and Value Trends
- 1062 Single Family Home Sales Down 2%
- Avg. Marketing Time: 68 Days Up 3%
- Avg. List to Sold Discount: 4.3% Up 14%
- Total Sales Volume: $1.19B Down 11%
- Average Price: $1.13M Down 9%
- Median Price: $747K Up 4%
- 4 REO & Short Sales Down 50%
- 16 Sales Below $300K Down 6%
- 306 Sales over $1M Down 1%
- 61 Sales over $3M Down 25%
- High Sale Price: $37M Down 8%
- Low Sale Price: $110K Down 35%
- 1,083 Single Family Homes
- Average Marketing Time: 66 Days
- Avg. List to Sold Discount: 3.7%
- Total Sales Volume: $1.34B
- Average Price: $1.24M
- Median Price: $720K
- 8 REO & Short Sales
- 17 Sales Below $300K
- 309 Sales over $1M
- 81 Sales over $3M
- High Sale Price: $40M
- Low Sale Price: $168K
Q4 Saw a 21% Increase in Dollar Volume over 2018
The North Lake Tahoe, CA and Truckee real estate markets finished the year with tenacity, resulting in a 21% increase in dollar volume in Q4! Although we struggled to keep up with 2018, the fact that the market came back so much in Q3 and Q4 shows that demand for Tahoe properties remains strong and that we should have solid carry over into the New Year. I expect demand to remain strong in 2020 but there will most likely be inventory shortages which will create headaches for buyers and likely cause a reduction in units sold throughout the year. If sellers price their homes in-line with the market, we should see steady increases in the median home price throughout the year. Typically the highest levels of appreciation occur in the spring, so it will be interesting to see what our market does in the first quarter.
Lake Tahoe Real Estate Year-End 2019 Market Report Sales Chart
Lake Tahoe Real Estate Year-End 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
- Year-End 2018 Lake Tahoe Market Report
- Year-End 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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