Team Blair Tahoe reports the Tahoe region underwent the largest increase in year-over-year sales among all Northern California/Bay Area markets; 2021 inventory shortages and low rates will perpetuate current conditions.
Tahoe City, CA—The Lake Tahoe luxury real estate market has performed at a record level for the last half of 2020, despite facing unprecedented business challenges in the face of a national pandemic. The founding partner in the region, Team Blair Tahoe, reports that the greater Tahoe region experienced year-over-year luxury sales growth of 187 percent for the May to October period. Sonoma, (110 percent); Santa Cruz County (100 percent); and Monterey (94 percent) Counties saw the second, third, and fourth largest year-over-year sales increases in the Northern California luxury real estate market, according to analysis of MLS data by Compass chief market analyst Patrick Carlisle.
Luxury real estate in the Tahoe region is defined as homes that record sales at or above the $2 million threshold. Because of geographic proximity and buyer demographic similarities, the Lake Tahoe region’s (including Truckee) real estate market data is included with 10 Bay Area counties.
From May to October 2020, the average number of days on the market for luxury homes in the Northern California region was 62, a 13 percent drop from the same period in 2019. In December 2019, the average was 109 days, and in January 2020, 94 days, demonstrating that pandemic-induced lifestyle relocations can be used to explain this year’s market performance. Highly favorable mortgage rates were also a factor.
“We couldn’t be happier to be helping so many families learn what makes Tahoe such a special place to live,” said Jamie Blair, founding partner and broker at Team Blair Tahoe. “Like so many other offices, we had no idea what to expect back in March, but we know now that the spring market wasn’t an anomaly, and that the open air, the lake, and our lifestyle are a tremendous draw for people looking for sophisticated rural luxury.”
The median price for luxury homes in the Tahoe market for the six months tracked was $3,031,250, the fifth highest among the 11 markets in the report.
Luxury sales have surged nationwide, recording an increase of 41.5 percent in the third quarter, compared to last year. Government relief programs, rental market movements, and unemployment will continue to mix the economy with uncertainty, according to Blair. However, real estate hasn’t mirrored the overall mood of the economy, offering economists something positive to talk about.
Blair expects the new year to reflect current conditions, which suggests inventory shortages will slow the overall pace and volume of sales in 2021, but days on market and price metrics will remain as strong. Historically, winter is a buyer’s market.
“Mortgage rates and ongoing remote work trends should continue to back the luxury real estate market, and it will remain a seller’s market,” Blair said. “But no one can predict what impact the lingering pandemic and social challenges will have. We’re going to focus on our clients and our market, regardless of what arises.”
Team Blair Tahoe offers real estate services throughout the Lake Tahoe basin, including Nevada and Truckee.
Explore Additional Insights and Articles
