2018 Lake Tahoe and Truckee Sales Trends
Median Sales Prices Rise
We began 2018 showing a strong real estate sales trend in Lake Tahoe and Truckee that has continued. The area showed a rise in the sales of luxury homes, with 70% of homes selling for over $1 million. In fact, during the first half of 2018 there were over 60 homes that sold for over $2 million. Inventory remains below 50% of a balanced market. Inventory has continued to decline during the summer. This has lead to a 25% increase in the median home price for the region. The current median home price is $665,000 in Truckee and 712,800 in Tahoe City.
The above graphic shows the increase in the overall median home price for the region. It compares 2018 prices to the same period last year. It also highlights how the number of sales have declined over last year because of the shrinking inventory levels. Sales remain strong, but competitive. If you are thinking of listing your home for sale, you can currently enjoy a seller's market.
Strong Demand Drives Higher Prices
The last couple of years have had heavy snowfall. This has driven demand for homes in North Lake Tahoe and Truckee. The demand should continue to exceed supply throughout the rest of 2018, driving prices even higher. Sales trends over decades show how when affordability becomes an issue, it can cause the market to correct downward. As we close the summer of 2018, that correction is nowhere in sight.
Bay area families continue to seek the type of lifestyle parents experienced in childhood and seek to secure this for their children and grand children. A vacation home offers a lifestyle experience of skiing, hiking, biking, fishing and boating in the clean, mountain air, within a 3 hour drive from our major feeder markets. Additionally, improvements in economic factors has also driven demand to outweigh the number of available homes for sale.
Luxury Home Sales Set New Record
33% of all sales in the region were luxury properties and because there is very little entry level inventory available for sale, this has also driven the median sales price for the area into record highs.
While the second half of any year usually sees an increase in sales activity, a lower volume of sales is expected specifically because of the lack of inventory. Homes sell quickly and for near asking price and sellers are enjoying a market where listings are only on the market for a short period of time. Buyers hoping to find entry level inventory below $650K presents an ongoing challenge. These homes sell quickly and often, with multiple offers.
If you want an agent who can help you buy a second home in Lake Tahoe or Truckee, I can help you negotiate in this highly competitive market. Additionally, if you were thinking of selling your home in Tahoe and Truckee, there has never been a better time to do so. Contact me today to learn more.