Lake Tahoe Real Estate January 2025 Market Report

Lake Tahoe Luxury Home Sales Were Robust in January

The North Lake Tahoe, CA, real estate market is off to a feverish start in the New Year, highlighted by 4 sales over $6M with an exceptional lakefront estate in Tahoe City trading hands for $27.5M. The final months of 2024 showcased strong momentum in the luxury markets, which carried into the New Year. With only 44 single-family home sales in January, we are well below the historical average sales volume. The quality of the sales in January 2025 were on another level as 80% of these sales were over $1M, and we saw 15 sales over $2M. Inversely, home affordability slipped away, with only 3 of 44 sales closing below $600K, as reflected in the median home price jumping 24% year over year to $1,623,000.

Lake Tahoe Real Estate Market Report January 2025 Highlights

• 8 Sales over $3,000,000 with 4 sales over $6M
• Median home price Up 24% to $1,623,000
• High Sale: Tahoe City Lakefront Estate at $27,500,000
• Only 9 single-family home sales below $1M, with 3 sales below $600K
• Total January sales volume = $120M, Up 52%

Positive Economic News

According to The Conference Board, CEO, and C-suite confidence was at a three-year high in Q1 2025, which is positive news for the market. “CEOs were substantially more optimistic about current economic conditions as well as about future economic conditions—both overall and in their own industries.” C-suite executives are among the core demographic of Tahoe luxury properties. If these executives are confident in the economy, we should continue to see strong demand for Lake Tahoe luxury vacation homes.

Year over Year Market Conditions and Value Trends

Lake Tahoe Real Estate January 2025 Market Report Sales Chart

Lake Tahoe Real Estate January 2025 Market Report 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: 1.94 Months of Inventory = Seller’s Market (kind of)

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 period of time. Here are the statistics used to determine the absorption rate for the North Lake Tahoe, CA, and Truckee real estate market.

Absorption Rate (single-family homes)

• 467 Sales in the Last 6 Months
• 78 Sales per Month
• 2.6 Sales Per Day
• 151 Current Active Listings
• 151 Listings / 78 Sales Per Month = 1.94 Months of Inventory = Seller’s Market
  • 1 to 3 Month Supply of Inventory = Seller’s Market
  • 4- 6 Months of Inventory = Balanced Market
  • 6+ Months of Inventory = Buyer’s Market

With only two months of inventory (single-family homes for sale), there are very few active listings in any given neighborhood, creating an advantage for sellers. However, the number of buyers in the market is down significantly, which reduces some of the seller’s power. When there is only one home for sale in a given neighborhood, the seller is in a good position to negotiate favorable terms.

In a more typical market, 2 months of inventory would produce bidding wars and above-average appreciation. This market differs due to limited buyer activity and high mortgage interest rates. Although this is technically a seller’s market, it feels and acts more like a stabilized market with supply and demand in balance.

Pending Home Sales Provide Market Insight 

Currently, 49 single-family homes are pending in escrow, with an average list price of $1,835,356 and a median price of $1,298,028. Of the 49 pending sales, 63% are priced over $1M, with 13 homes above $2M and 4 listings above $4M. The average marketing time for the pending sales is 106 days.

With pending sale pricing below January’s average and median sales prices, this shows that we are seeing a return to normalized pricing that is slightly above January 2024 but not on pace with the tenacity of January 2025. This data shows we are on a positive trajectory despite challenging market conditions. Lake Tahoe buyers are searching for good-quality homes in desirable subdivisions, so those homes are selling well, while dated homes with differed maintenance in less desirable neighborhoods are proving more difficult to sell.

Buyers remain discerning but make offers when they find the right home. This is a great time to sell if you have a high-quality home in a great neighborhood. Overpriced homes do not fare well in this market and tend to linger, often requiring price reductions to generate a sale.

Lake Tahoe Real Estate Market Report Archive

View All Tahoe Real Estate Market Reports
January 2024 Real Estate Market Report
January 2023 Real Estate Market Report 

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