2021 Year End Market Report Lake Tahoe
Two factors are at play to drive strong 2022 real estate sales activity in Lake Tahoe. December snowfall hit record levels and many ski resorts opened for Christmas. This much needed precipitation event means sustainable snowpack might offset California's drought.
Additionally, the Bay Area pandemic migration to Lake Tahoe has continued unabated. This began during the summer of 2020 and continued throughout 2021. With 7.7 million people living in the Bay Area of California, these buyers represent 70% of our feeder market.
As the pandemic has continued, and is experiencing another surge, we expect to see more companies allowing for remote work. When given the choice to live in the congestion of the city or in the majestic mountains of Lake Tahoe, most people are choosing mountain living.
Real Estate Sales Activity 2021
While 2020 saw more sales transactions, reduced inventory limited 2021 sales numbers. During 2021, home prices rose faster than previous years because demand far exceeded supply.
The luxury market experienced the biggest increase in sales activity over prior years. However, by the end of 2021, the median price in most areas was over $1 million. By November of 2021, the median price of homes sold were as follows:
NORTH LAKE TAHOE MEDIAN PRICES 2022
North Shore $1 million
West Shore $1.2 million
Alpine/Squaw $1.5 million
Northstar $1.6 million
Truckee $1.7 million
Tahoe Donner $1.3 million
North Shore Lakefronts $8.6 million
Incline Village $2 million
Incline Village and Truckee saw a median price increase of 40% year over year, and home values are at an all time high. On the North and West Shores, the median price increased 48%. These are huge increases, but 2021 saw 20% fewer transactions year over year because of the dwindling inventory.
Another aspect of this type of market will be finding the top for home values. When demand driven price increases - surpass affordability, this can tend to slow market activity. Homes that are priced well continue to sell quickly. Sellers who overprice, hoping to take advantage of possible future values experience longer days on market.
While we will continue to see a few price reductions as sellers approach the market more realistically, we've started with a strong beginning to January 2022, and expect values to hold steady.
Strong Sales in November 2021
Normally October begins our shoulder season, but in November of 2021, we had 152 sales, which represents a 17% increase from October to November. By the end of 2021, we had only 182 available listings, which represents a 5 week absorption rate. Because at least 25% of listings were not priced competitively, but are the result of sellers taking advantage of market activity, the absorption rate held steady during 2021.
In 2021, there were a little over 1900 homes sold. This figure is less than 2020, but the increase in median price kept the overall dollar volume the same, year over year.
Commercial and Investment Sales Lake Tahoe 2021
Commercial transactions picked up and lots sold well in 2021. Over the last 5 years, lots were never a strong part of Lake Tahoe real estate market activity. Many people are buying lots as an investment, while some lots have huge development potential. Lots for sale at Lake Tahoe are still well-priced between $200K and $400K.
Just since June of 2021, 48 lots have sold on the North and West shores of Lake Tahoe.
Kings Beach Investment Opportunity
My listing on Chimpmunk Street is a great opportunity to purchase a large parcel consisting of 3 lots with development rights and potential lake views. It is also zoned for both single family and multi-family.
This parcel is located close to the local ski areas, bordered by conservancy lands, and is walking distance to the shores of Lake Tahoe. Centrally located between Northstar, Mount Rose, Squaw and Alpine, and with easy access to hiking trails and Kings Beach and Crystal Bay amenities, this listing is priced to sell.
Whether you’d like to build a large, dream estate, or develop multiple properties as rentals, this is an excellent investment opportunity. Price:$367,000
During 2021, I had the opportunity to sell luxury lakefronts, commercial properties, investment lots and many homes across the North Lake Tahoe area.
If you are thinking of buying or selling a property at Lake Tahoe, contact me today for the most up-to-date market information.