August 2021 Set the Record for the Highest Percentage of Total Sales over $1M

In August, we witnessed significant buyer demand and extraordinary luxury homes sales, which helped push the average Lake Tahoe home price to a new record of $1.89M, up 35% from last year. Interestingly, we saw fewer home sales in August 2021, which appears to result from constrained inventory levels, poor air quality from fires, and buyer fatigue.   

Lake Tahoe Real Estate Market Report August 2021 Highlights

• Average Marketing Time = 22 Days Down 52%
• Average Home Price = $1.89M Up 35%
• Median Home Price = $1,110,000 Up 17%
• Sales volume of $3M+ homes is Up 17%
• 10 Sales over $7M with 4 Martis Camp Homes selling above $10M
• 71% of sales in August were over $1M

In August, Tahoe was engulfed in smoke which did not help the market, but at the same time it did not deter motivated buyers from making purchases. We are beyond grateful for the courageous firefighters, responders, and support staff that helped recently contain the Caldor and Dixie fires. We dodged a bullet with the Caldor fire, as the devastation could have been far worse if it were not for the ambitious efforts of fire personnel. Our thoughts are with those that lost their homes and communities at the hands of some of the worst fires that California has ever witnessed. Fortunately, clear skies have returned to Tahoe, and we are hopeful that Tahoe will remain smoke-free this autumn.

The pandemic fueled Tahoe luxury real estate market has been setting records for over a  year, and in August 2021, there were 10 sales over $7M with a high sale price of $12M. Sales within the Martis Camp subdivision accounted for 7 of the top 10 August sales. In a given month, we typically see 25-30% of sales fall into the $1M+ range, but in August, we saw 70% of all sales over $1M, which is remarkable and a record-setting ratio. Demand for high-quality homes in amenity-rich neighborhoods is exceptional, and buyers continue to face fierce competition for these Tahoe properties.

 

Year over Year Market Conditions and Value Trends

Lake Tahoe Real Estate August 2021 Market Report Sales Chart

 

 

 

 

 

 

 

 

 

 

 

 

Lake Tahoe Real Estate August 2021 Sales Volume Chart 

 

 

 

 

 

 

 

 

 

*North Lake Tahoe, CA and Truckee Single-Family Home sales including lakefronts. Data is taken from the Tahoe-Sierra Board of Realtors, MLS Areas 1-9.

Absorption Rate: Only 76 Days of Inventory (that’s not enough)

The term absorption rate refers to a metric used in a specific real estate market to evaluate the rate at which available homes are sold during a given time period. Here are the metrics and absorption rate for the North Lake Tahoe, CA and Truckee real estate market.

• 735 Sales in the Last 6 Months
• 122.5 Sales per Month
• 4.08 Sales Per Day
• 151 Active Listings
• 151 Listings / 4.08 Sales Per Day = 37 Days of Inventory or 1.2 Months of Inventory
• >2 Months of Inventory = Strong Seller’s Market
  • High Rates of Appreciation and Regular Multiple Offer Situations
• 1 to 3 Month Supply of Inventory = Seller’s Market
• 4- 6 Months of Inventory = Balanced Market
• 6+ Months of Inventory = Buyer’s Market

Currently, there are 145 pending homes in escrow with an average list price of $1.6M and a median list price of $1.1M, which shows that the market remains bullish as pricing continues to rise in this inventory-constrained market.

Sell Your House & Exceed Your Expectations

If you’re considering selling your Tahoe/Truckee property, you chose a good year to do so as buyer demand is vigorous and inventory is constrained, creating an opportunistic time to sell your home and possibly generate a record sale in your neighborhood. This is possibly the best time in history to sell a Tahoe property, so if you are considering moving to the coast or to another destination resort community, we should engineer a custom plan to ensure your success. 

When Will the Lake Tahoe Real Estate Market Slow Down?

For the market to stabilize, we would need 4-6 months of inventory or a total of 490 active listings. Currently, we have 1.2 months of inventory (151 listings), which means that we need 339 new single-family listings to achieve stabilization. Over the course of the summer, we have seen an increased inventory, but we have not been able to achieve the 4 months of inventory needed for pricing stabilization. During the fall, we typically see inventory levels go down, so it does not seem that stabilization will take place in the near term.

If you’re considering selling your Tahoe/Truckee property, you chose a good year to do so as buyer demand is feverish and inventory is shackled, creating an opportunistic time to sell your home and possibly generate a record sale in your neighborhood.

Kids are back in school, and with events returning to a semblance of normalcy, it seems that some demand pressure will recede in the Lake Tahoe real estate market. Unfortunately, in the fall, we typically see falling inventory levels, so it would seem that even though demand might soften, inventory will remain constrained, which will continue to promote a seller’s market. Although pricing will eventually mellow out, it appears that we might be looking to the fall of 2022 before we see supply and demand come into balance.

Only time will tell, but for now, it appears that the market will remain strong for the foreseeable future. If you are considering purchasing or selling, we would love to discuss your goals and help put a plan together so that we can help you succeed. 

Lake Tahoe Real Estate Market Report Archive

View All Tahoe Real Estate Market Reports
August 2020 Real Estate Market Report
August 2019 Real Estate Market Report

Contact Dave Westall – Lake Tahoe Real Estate Agent

As the premier Tahoe Realtor, I’m here to help, provide insight, and help you achieve your real estate goals. Let’s schedule a Zoom meeting to chat and discuss how I can be of assistance.

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