Lake Tahoe Real Estate Report
As Lake Tahoe opens up to summer activities, we are seeing summer-long rentals and increasing demand from our feeder markets. There has probably never been a better time to list or buy a home in Lake Tahoe and Truckee.
The first quarter of 2020, showed 207 sales of single family homes in Lake Tahoe and Truckee. In 2019 at the same period, there were only 191 sales. Just in the first week of May, we had 15 sales with ¼ of the sales over $1 million. While the showing and closing process poses more challenges, the sales activity continues to be strong.
The growth in sales at Lake Tahoe and Truckee over last year, contributed to the higher prices we found in April and May 2020. Because of the shelter in place order, the number of sales decreased slightly, but the days on market fell dramatically. The limited amount of inventory contributed to homes selling faster.
As we finish May, we have seen an increasing amount of new listings come on the market, but the demand still remains high.
Increasing Demand for Lake Tahoe Real Estate
SF Gate, Tahoe Tribune and Sierra Sun recently ran articles about the growing demand for Lake Tahoe real estate. “As tech companies like Twitter, headquartered three hours away in Silicon Valley, are making plans for indefinite remote working, there is suddenly a new future for employees that does not require paying exorbitant rents for minimal square footage in San Francisco.” Many people are seriously considering living in Lake Tahoe and Truckee, working remotely, and returning to the Bay Area only two days a week.
Escaping to Lake Tahoe for the Summer
Property managers at Lake Tahoe are seeing requests for bookings for a month or longer this summer. People are choosing Lake Tahoe as an ideal place to ‘shelter in place.’ Additionally, because sports programs and camps in our Bay Area feeder markets will be closed this summer, Lake Tahoe has become the ideal place for outdoor recreation activity away from the crowds.
Luxury Market Lake Tahoe
Another factor driving demand is from those who sold stocks early in the year and were unscathed by the stock market volatility. They see luxury real estate as a safer investment. According to a recent Forbes article: “In economic downturns and stock market volatility, real estate has historically offered a stable shelter for wealth. It may not be much different today.”
According to Realtor.com: “In the final quarter of 2019, luxury real estate in the U.S. rallied both in sale volume and price. The segment posted double-digit sales growth year-over-year for the first time in 2019. The entry price rose by 2.1% to $1.27 million.” Today, the luxury market continues to show resilience in many places in the US.
Lake Tahoe Opening for Summer
By June 1st most of the boat ramps will be open. Currently, vessels with Tahoe Only stickers will be allowed to launch. According to TRPA officials, Tahoe-In-and-Out vessels will be considered to launch in future phases after health orders are further relaxed.
TRPA has paused the distribution of Lake Tahoe aquatic invasive species boat decals. They are allowing private marinas, public boat rams and local agencies to come up with a plan to open the lake in phases.
Golf Courses are Open in Lake Tahoe and Truckee
While there will be safe-distancing guidelines that need to be followed when playing golf, most of the golf courses around Lake Tahoe and Truckee are already open for summer:
North Lake Tahoe & Olympic Valley
Brockway Golf | Open
Incline Village Championship | Open
Incline Village Mountain | Opens May 25; driving range open
Links at Squaw Creek | Opens May 29
Tahoe City Golf | Open
Truckee & Northstar
Coyote Moon | Opens May 29
Gray’s Crossing | Opens May 22
Northstar California | TBA
Old Greenwood | Open
Ponderosa | Open
Schaffer’s Mill | TBA
Tahoe Donner Golf | TBA
The Celebrity Golf Tournament at South Lake Tahoe is expected to open as planned on July 8-12. The PGA Tour’s Barracuda Championship is expected to be held at Old Greenwood from July 27 to August 2nd.
As demand continues to increase, this may be the ideal time to either buy or list your property for sale. Contact me today for a free property sales analysis or for my picks on the best buys at Lake Tahoe and Truckee.