Archives for May 2020

May 2020 Market Update

Our market is down just 17% from last year and it is picking up steam in a big way. Sales of luxury homes are up 230% over last year (detail below). As for the market in general, the June numbers will reflect a major increase in sales and interest in Tahoe-Truckee properties.

 

We are seeing multiple offers on many properties, a $9m lakefront entered escrow in 10 days, an $18m lakefront sold off-market (still not reported in MLS).

 

Inquiries for our listings are skyrocketing. One of my sellers dropped price to $3m and we’ve had 4 showings in 10 days as compared to 3 showings in 3 months last year (click here to see a great video of this awesome Tahoe City log lodge on 3 acres).

 

Buyers from our primary feeder markets are deciding to purchase in order to Shelter in Place in Tahoe-Truckee. Some of them are buying as second homes and others are buying to actually move here. I have a theory that many of the latter group will turn around and sell more quickly than most buyers because once things normalize somewhat in a couple years, some of these 2020 buyers will decide full-time mountain life is not for them.

 

Here are sales from Jan 2019 through April 2020:

 

Last year was a typical year. From Feb to March sales decreased. Note that in 2020 sales actually increased. This is incredible because March 2020 was essentially half a month since coronavirus shock, school closures and Shelter In Place all happened then. This means our market was picking up huge steam then was decimated by coronavirus.

 

What’s happening now?

 

Year over year, April was down in volume by roughly 40%. This will likely be our hardest-hit month of 2020 since its sales reflects new buyer activity in March.

 

May year over year: MLS data shows our market down 57% BUT you come to thebigbluelake.com to get a more accurate picture of the market! Factoring in the $18m off-market sale May year over year is down just 30%.

 

How am I Pricing Homes Right Now?

 

I am recommending strong pricing for all sellers. For those sellers who inquired any time in 2019, I am continuing to recommend similar or higher pricing in 2020. The only exception is raw land as it has the most reasons for uncertainty. So my Spring-Summer 2020 sellers are excited because they are still being able to accomplish their goals – I must admit that I am very excited about this, too.

 

I have remained bullish on this market since closing a big sale in March and seeing that buyer’s reaction to coronavirus. I had a theory then and it’s proving true: the wealthy will want to come to Tahoe even more now than before. There are a multitude of reasons for this which I’ve described in previous posts (click here). I love talking about this stuff, so feel free to reach out: 530.214.6100.

 

Check this out:

 

Sales volume of properties over $2m: since mid-March volume is up 230% over last year – wow! The number of closed sales since mid-March is almost double what it was same time last year. When you think of what’s going on in the world, this is pretty staggering information.

 

Great for sellers: there are tons of buyers out there.

 

Great for buyers: there are awesome property options and money is almost free with interest rates under 3%.

Get in Touch with Alex

Kingswood Update May 2020

Kingswood has seen the effects of coronavirus. An escrow recently fell out since the 3/13 statewide school closure date, a turning point for our market. However, just like we are seeing in other areas there can be the opposite result from the covid effect – a home in the neighborhood at $800,000 entered escrow on 3/16.

 

While showings are somewhat challenging, real estate has been ruled an essential service so showings are permitted – we just need to be smart in how we handle them. Please see this page for LOTS more info on the Tahoe-Truckee market since 3/13.

 

Kingswood and Kingswood West had a fantastic year in 2019. Sales volume was almost as high as ’16 and ’17 which had the highest sales in the last 15 years including the peak of ’06. 
 
It wasn’t high end sales which drove the Kingswood market – there was only one sale over $1m. There was one sale under $500k. There were 5 sales in the $500k’s; 8 sales in the $600k’s; 10 sales in the $700k’s; and 2 sales in the $900k’s.
 

Quick Stats and Comparisons:

  • 4 active Kingswood + Kingswood West listings from $562k to $1.27m.
  • 2 homes in escrow listed at $639,000 and $800,000.
  • 1 sale thus far in 2020 for $800k ($5,000 over asking price).
  • Number of sales was very high in 2019: 27 vs 19 sales in 2018.
  • Time on market was also up in 2019: 72 days vs 42 in 2018.
 
The Tahoe area from Rubicon to Kings Beach averaged $1.19m sales price. Kingswood averaged $727k last year. The neighborhood is considered to be an upgrade from the Kings Beach grid and a value given nice lot sizes and central location to year-round activities, Tahoe, Northstar, etc.
 
 
My family and I live on Kingswood Drive – I enjoy working in the neighborhood and we love raising our kids here!

Mid-May Lakefront Update

A $19.5m Sunnyside property was promoted off-market and sold almost immediately for $18m.  Sale not yet recorded in MLS.

 

A Rubicon property priced at $9m with beautiful beach and pier entered escrow in 10 days – the lakefront average is 141 days. Note one of the other 2 lakefront sales this year had just 26 days on market.

 

A sweet spot on Flick Point for $8m just entered escrow – was initially offered for $11m.

 

In a nutshell, we have a ton of buyers standing at the gates waiting to be let into the marketplace. Some have crashed the gate and gotten up here to buy! 

 

Things are very interesting. The problem right now is a dearth of lakefront properties available for sale. So these buyers who understand that it’s easier to buy than rent are speeding up the timeline they may have previously set for a potential Tahoe purchase. Time is extremely valuable to these people and so they are buying Tahoe lakefronts now. I see this strong demand continuing for months.

 

Quick Stats

  • 11 active lakefront listings from $2m to $6.25m.
  • Half of these were offered last summer – ouch.
  • 3 lakefronts in escrow now, $3.5m, $8m and $9m
  • Usually 6-10 lakefronts enter escrow between Mid-May and Mid-June – this is primetime.
  • 2019 sales were down 50% from 2018. 2018 volume was nearly double 2017. See chart below.

 

All three lakefront homes which sold this year were not offered last year. This means half the current inventory is stale and has been picked over. We need more lakefronts to sell!

I send videos to buyers who can’t make it up. Here is a sample: The Lakeside Drive house for $3.5m has a great feel but no garage – casual video walk through link.

 

Here are the properties I have listed and am marketing right now. You’ll see that I use high-end video and imagery for each. It all starts with the presentation.

 

20 Crystal Drive, $24,850,000

Main Website: 20CrystalDriveTahoe.com

20 Crystal Flipbook

 

24 Crystal Drive, Coming soon. Price also >$22,950,000

Main Website: 24CrystalDriveTahoe.com

 

2222 Silver Fox. $5,950,000

Main Website: NorthstarCastle.com

Largest home to ever be sold at Northstar.

 

580 Granlibakken Road. $2,950,000

Main Website: Click here

5451′ Ahwahnee-esque log lodge on 3 acres right near downtown Tahoe City.

Get in Touch with Alex