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YEAR END TOTALS
Another impressive year is in the books for the Lake Tahoe and Truckee real estate market! All told, a record of nearly $2.5 billion in residential real estate was sold. Records were also set for average sales price and median sales price (for both single family homes and condos), as well as a record number of sales over $1 million, over $2 million, and over $5 million.
The total number of residential sales was down compared to 2020 but came in at the 2nd highest number in the last 15 years (1,644 total sales).
What stands out the most throughout the year was lack of inventory combined with demand exceeding supply. Multiple offers on properties, and sales prices above asking, were the norm.
That said, the first and second halves of the year looked very different. The first half of the year we had more homes coming on the market than usual, but demand was even stronger (gobbling up that supply and keeping inventory low). The first half of the year is when prices were really surging. Then, the second half of the year, the inventory challenge was compounded by a slowing supply side which really limited the number of transactions that could take place. Prices held strong and activity was strong enough to get us to these record numbers.
Median and Average Sales Prices: For single family homes, the average sales price came in at a record $1,767,705 and the median was also a record at $1,175,000. On the condo side, the average was a record $834,118 and the median a record $650,021. For most market segments, the numbers represent a 50-65% increase in value over 2019.
See the attached charts for breakdowns by neighborhood/region!
Active Residential Inventory:
Active Listings: The last eight months of the year all saw a below average number of new listings. All told, new listings came in 40% below the 10 year average in the second half of the year. There are currently just 81 residences actively for sale (62 single family homes and 19 condos). This is down from 150 two months ago and 197 three months ago, and less than 1/5 of the inventory we typically expect to see at this time of year.
Current Pending Sales: There are currently 104 residences in contract (down from 140 last month and 171 two months ago). 63 residences went into contract in December (down from 100 in November and 120 in October).
Current inventory represents about 1.25 months of supply, relative to December activity.
Sales Under $500,000: For the year, residences priced under $500,000 represented just 8% of sales with 136 properties sold. For the same period in 2020, 18% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: 687 residences sold between $500,000 and $999,999, representing 42% of total sales. For the same period in 2020, 49% of sales were in this price range.
High End Home Sales $1,000,000 to $1,999,999: In total, a record 558 homes sold between $1m – $2m, representing 34% of total sales. For the same period in 2020, 444 homes sold in this price range, representing 21% of total sales.
Luxury Home Sales Over $2 Million: A record 263 residences sold over $2 million for the year, representing 16% of sales. 66 of those sales were over $5 million, also a record. For the same period in 2020, 238 homes sold over $2 million, representing 11% of sales. 50 of those sales were over $5 million.
What’s Going On Looking Forward?
It has been a funny winter so far. We had a big storm in October followed by a dry November, then a big series of storms in December followed by a dry January. Will we get hammered again in February? We will have to wait and see. For the time being, come up and enjoy the sunshine and the substantial amount of snow that is on the ground!
As far as the future of the real estate market . . .
The shortage of inventory, and lack of new supply, is still the dominant feature in the market. The supply side will truly determine what 2022 looks like. There are also significant variables like short term rental regulations, covid, inflation, and mother nature (snow, fires, etc), that are going to have an impact on activity. Our expectation is that supply (new listings and inventory) will remain low through the winter. If that holds true, the trend toward smaller numbers of transactions will continue. Pricing is likely to hold steady, unless something triggers another surge in demand, or, in a far bigger surprise, a surge in supply.
For the time being, sellers are still in the driver’s seat but they don’t hold all the cards like they did in the second half of 2020 and first half of 2021. Overpriced homes are sitting on the market, there aren’t multiple offers on every home, and buyers can find a bit of leverage in certain situations.
Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.
