Mid-Year Market Update: Lifestyle Investment Remains Top of Mind for Tahoe Buyers
Over the past several months, society has begun to navigate its way out of the pandemic, while meeting a new set of challenges with social unrest abroad, cost-of-living inflation, roller-coaster stock markets, and rising interest rates.
The Silver Lining to the Cloud of Uncertainty
While the local Lake Tahoe real estate market remains strong, we are having many discussions with both buyers and sellers concerning interest rates and the possible directions of a shifting market.
With the Federal Reserve recently raising rates, some sellers are offering unique incentives to offset this concern amongst buyers.
Looking forward, all indications are that national markets will soften. While national news and national markets may not carry an optimistic tone, there are few signs of much of a significant Lake Tahoe market shift. Like many ‘lifestyle destinations’, Lake Tahoe real estate exploded over the past two years, so a correction has been expected for some time. Interest rates are also still at relatively low numbers when looking at historical rates, however, that combined with overvalued homes has increased buyer caution, but not interest. The persistent trend we have seen is that investment in the luxury mountain lifestyle is a key driver to Lake Tahoe.
What is clear now, more than ever, is that it is imperative to work with an experienced real estate agent to navigate the market successfully. The world of real estate has experienced many twists and turns throughout our decades in the business, and we are confident that we can continue to help our clients realize their dreams of finding the perfect property in Lake Tahoe. Call it shining a long-term lifestyle light at the end of the short-term tunnel.
Contact us to learn more about your options in today’s market.
Lake Tahoe Market Breakdown
Incline Village 2022 Q2 Stats
40 – Single Family Home Sales – Down 35%
$127,654,366 – Dollar Volume Sold – Down 37%
$3,191,359 – Average Sale Price – Down 4%
$2,350,000 – Median Sale Price – Up 13%
77 – Average Days on Market – Up 24%
$127,654,366 – Dollar Volume Sold – Down 37%
$3,191,359 – Average Sale Price – Down 4%
$2,350,000 – Median Sale Price – Up 13%
77 – Average Days on Market – Up 24%
37 – Condos/Town Homes Sales – Down 40%
$47,271,300 – Dollar Volume Sold – Down 18%
$1,277,603 – Average Sale Price – Up 18%
$1,100,000 – Median Sale Price – Up 18%
63 – Average Days on Market – Up 25%
$47,271,300 – Dollar Volume Sold – Down 18%
$1,277,603 – Average Sale Price – Up 18%
$1,100,000 – Median Sale Price – Up 18%
63 – Average Days on Market – Up 25%
Incline Village continues to be the highest-valued real estate in the entire Lake Tahoe region with the average single-family home prices over $3 million. Low inventory and high demand are key drivers again for Q2 2022 that should make for another strong selling season this summer and fall. Transactions are down, which in turn keeps the dollar volume down, but average and median pricing is holding. Average Days on Market are up 25%, which could indicate a cooling market, but Incline Village is a luxury enclave with great tax benefits and tends to weather inflationary and interest rate storms better than most markets.
North Lake Tahoe-Truckee Q1 2022 Stats
383 – Residential Sales – Down 31%
$560,709,207 – Dollar Volume Sales – Down 22%
$1,463,992– Average Sale Price – Up 12%
$1,135,000 – Median Sale Price – Up 30%
897 – Active Listings – Down 12%
24 – Average Days on Market – Down 50%
$560,709,207 – Dollar Volume Sales – Down 22%
$1,463,992– Average Sale Price – Up 12%
$1,135,000 – Median Sale Price – Up 30%
897 – Active Listings – Down 12%
24 – Average Days on Market – Down 50%
North Lake and Truckee remain one of the hottest markets in Lake Tahoe. With 24 Average Days on the Market, this region continues to close deals quickly. One key to this is while Active Listings are just under 900 (normally over 1,600), there are only 496 existing homes available (Normally 900-1,000), which keeps competition high. Higher Interest rates are starting to hurt buyers, and this will continue to erode the buying power of a significant number of potential buyers. While there is uncertainty in the future and a lot of talk about a softening market, the current North Lake Tahoe and Truckee market is showing all signs of another strong selling season in 2022.
South Lake Tahoe, Nevada – Q1 2022 Stats
45 – Residential Sales – Down 40%
$76,109,500 – Dollar Volume Sold – Down 39%
$1,691,322 – Average Sale Price – Up 2%
$983,000 – Median Sale Price – Down 1%
158 – Active Listings – Down 8%
74 – Average Days on Market – Down 20%
$76,109,500 – Dollar Volume Sold – Down 39%
$1,691,322 – Average Sale Price – Up 2%
$983,000 – Median Sale Price – Down 1%
158 – Active Listings – Down 8%
74 – Average Days on Market – Down 20%
South Lake Tahoe on the Nevada side is an interesting micro market in the Lake Tahoe region. While it continues to show a significant lack of inventory, pricing is flattening out. With the Average Price up 2% and the Median Price up only 1%, indicates a cooling market. Active listings are still down 8% and Days on the Market are down 20%, but both indicators could be a result of the busy summer selling season. None of these statistics are bad, or alarming, but this smaller market is one to keep an eye on as the flattening pricing is unique to the broader Lake Tahoe market.
South Lake Tahoe, California – February 2022 Stats
174 – Residential Sales – Down 21%
$165,898,952 – Dollar Volume Sales – Down 19%
$953,442 – Average Sale Price – Up 2%
$753,000 – Median Sale Price – Up 9%
59 – Average Days on Market – Down 8%
$165,898,952 – Dollar Volume Sales – Down 19%
$953,442 – Average Sale Price – Up 2%
$753,000 – Median Sale Price – Up 9%
59 – Average Days on Market – Down 8%
Like the South Lake NV region, South Lake CA is showing a few signs that the market is slowing down. Average Pricing is up only 2% and Median Pricing is up 9%. One key point with the median price is that a strong market tends to see median pricing increase by single-digit percentages, which would indicate that this market is in great shape. We have all gotten so used to double-digit increases and surging prices, when we refer to a “softening” or “flattening” market, these markets may just be normalizing!
Reno – Q1 2022 Stats
1,359 – Residential Sales – Down 19%
$938,830,298 – Dollar Volume Sales – Down 3%
$690,824 – Average Sale Price – Up 17%
$550,000 – Median Sale Price – Up 16%
3,157 – Active Listings – Up 6%
68 – Average Days on Market – Up 20%
$938,830,298 – Dollar Volume Sales – Down 3%
$690,824 – Average Sale Price – Up 17%
$550,000 – Median Sale Price – Up 16%
3,157 – Active Listings – Up 6%
68 – Average Days on Market – Up 20%
Reno had another great performance in Q2 2022. The Reno market outperformed with 19% fewer sales, but dollar volume only dropped 3%. Average and Median prices are up 17 and 16% respectively. Days on the market are up 20% and Active Listings have risen 6%, which may hint at a shift, but the market should continue to perform into the second half of 2022. Rising interest rates will have more of an impact on the Reno region as more buyers require a loan to secure their homes. All signs are that the market should continue a strong second half, but inflation and rising interest rates will eventually have a negative impact on the real estate market.
