August 2015 Lake Tahoe Real Estate Market Analysis

The Lake Tahoe Real Estate Market is Strong. Well, Sort of…

The highlight of the 2015 Tahoe real estate market is our sales volume, which is up 6% over 2014.  Upon first glance, the Tahoe markets appear weak in 2015 but overall the market is strong with an under-performing luxury segment which is impacting statistics. This year in Lake Tahoe buyers are more discerning than ever and are only purchasing properties that are “good deals” which has led to an 18% increase in the average marketing time (from 83 days to 101 days).  In today’s market, pricing your home correctly is paramount to selling your home as overpriced homes are lingering.

August 2015 Lake Tahoe Real Estate Market Analysis Chart

*North Lake Tahoe and Truckee Single Family Homes Including Lakefronts. Data taken from the Tahoe-Sierra Board of Realtors MLS Areas 1-9

Lake Tahoe Luxury Sales

In the Tahoe markets, luxury home sales ($1M+) make up 14% of total sales volume but account for 44% of the total dollar volume, so it is easy to see that an under-performing luxury segment will wreak havoc on statistical analysis.  Overall luxury home sales are historically strong in 2015 with 84 sales over $1M and 25 sales over $3M, but luxury sales volume is down 26% this year.  In 2014, 60% of luxury home sales occurred in Q3 and Q4 so I remain confident that 2015 will see a strong finish.  Currently, there are 36 luxury homes in escrow with an average price of $2.5M and when these properties close the market will see a nice bump.

A Different Spin

Due to the fact that the luxury market is off in 2015, I’ve been analyzing the sub $1M market for the last few months and it’s been surprising to see that this segment is strong and makes up 83% of total sales. In the sub $1M market, sales volume is up 11% this year, the average price is up 1% and the median price is up 4% over 2014. This shows that the market is strong, but there is turbulence in the luxury segments which is causing the overall market to show weakness. When I look at pending sales and buyer activity I remain confident that the 2015 Tahoe markets will show appreciation by year end and that even the luxury segment of the market will show gains.

Year over Year Lake Tahoe Real Estate Market Analysis

 

Please feel free to contact me to discuss the Lake Tahoe and Truckee markets, I would be happy to answer any questions you have or provide insight into market conditions for your specific Tahoe/Truckee neighborhood.  With high buyer demand this has been a busy summer for real estate sales, so if you are considering selling your Tahoe property lets talk today and discuss how I can help you sell your home for a price that will exceed your goals.