How’s the Tahoe-Truckee Market?

 

Since coronavirus hit CA, 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 283% 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). I’ve seen many properties near $1m with multiple offers and sell within a week, one for $100,000 over asking (10%, wow).

 

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 May 2020:

(Note that you need to add $18m to the May sales due to an off-market lakefront sale)

 

Last year was a typical year. From Feb to March sales decreased. Note that in 2020 during the same time, sales actually increased. This is incredible because March 2020 was essentially half a month because 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, May volume is down just 11%. This is a 6% improvement in the last 30 days however the actual improvement is much larger and will be seen in June with heavy closing volume. Note: straight MLS data shows a 32% drop in volume year over year but I use off-market sales data to give you a more accurate picture of the market – Welcome to TheBigBlueLake!

 

MLS-wide since March 13 when things got serious in CA, sales volume is exactly equal but the number of sales is down 29%.

 

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.

 

How am I Pricing Homes Right Now?

 

We are currently in a high-price bubble which started in mid-May and has made itself apparent over the last week (end of May-early June). I am increasing pricing recommendations for sellers. This will likely be short-lived because inventory will improve and the most voracious buyers will have cleared through the market by purchasing. The only exception is raw land as it still has the most reasons for uncertainty mainly due to supply chains. 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. Feel free to reach out about your property.

 

A little background: 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 283% over last year – wow! The number of closed sales since mid-March is more than 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

 

To see my May Update, click here

Each of my posts has the previous month and mid-month updates so you can go back through the market in detail by visiting each post and clicking for the previous one.

 

 

To see my January 2020 aka pre-Corona virus update, click here


Quick Market Data

For more detailed, Tahoe regional breakout stats and charts click here.

 

North + West Shore, single family and condominium sales

Year Total Volume # Units Sold Ave. Days on Market Ave. Price Median Price
2019 $403m 408 76 $990k $601k
2018 $538m 436 71 $1.2m $655k
2017 $431m 475 78 $907k $620k
2016 $351m 408 101 $859k $555k
2015 $371m 434 106 $856k $535k
2014 $396m 346 101 $874k $511k
2013 $420m 307 107 $733k $471k

 

Truckee-Tahoe Donner, single family and condominium sales

 

Year Total Volume # Homes Sold Days on Market Ave. Price Median Price
2019 $445 594 46 $751k $650k
2018 $423 584 41 $725k $638k
2017 $443 656 49 $676k $594k
2016 $372 614 62 $610k $540k
2015 $312m 543 63 $575k $502k
2014 $282m 489 64 $577k $500k
2013 $314m 582 68 $539k $479k

 

Click here for my 2018 Recap

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“We are very happy with the deal, Alex. You made it happen and you are a hero.”

– Neil and Karen B. Sellers of 3266 Edgewater. Closed price $8,199,000. Record breaking lakefront sale in Dollar Point.

 

“We enjoyed working with you and will be in touch when we want to sell more property. Thanks again for getting it sold.”

– Bonnie and Ken. Forty-year Tahoe residents with multiple properties and businesses. Had previously worked with another agent.

I start from the perspective of doing what’s right for you and your property. I shoot straight regarding value and how we can maximize the sales price. I am known for creative, high-quality marketing and effective negotiations. I provide personal attention to both you and your property. I keep a foot on the gas throughout escrow. I attend appraisals for unique and high-end properties to ensure value is attained by the buyer’s bank. I watch the details. I use the best stagers, photographers, web developers and the finest print and online media. The end result is your property standing head and shoulders above competing listings and your sale happening efficiently. This is especially powerful when coupled with Chase International: Reno-Tahoe’s regional leader with over $1.5 billion in annual sales.

3266 Edgewater Drive. Sold by Alex for $8.199m, July 2015.

3266 Edgewater Drive. Sold by Alex for $8.199m

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