LAKE TAHOE REAL ESTATE MARKET CONTINUES TO SET RECORDS
I’m pleased to share our market report for Q2. The statistics confirm demand continues to outpace supply. In the second quarter, luxury home sales were up 158% over last year, but the most impressive record is that luxury home sales made up 59% of all sales in Q2. That is the highest ratio of luxury home sales that Tahoe has ever seen and speaks volumes about the demand for high-quality vacation homes in the Tahoe market.
Because the market trends vary by region, we’ve broken down the critical data including days on market and list price versus sale price by neighborhood to help you make informed buying and selling decisions. Below you will find links to the statistics for each neighborhood we cover. If your neighborhood of interest isn’t listed or you would like specifics about the current value of your home or a potential purchase, don’t hesitate to contact me.
The common question is “what’s next?” Of course, nobody has a crystal ball, and we cannot predict the future; however, I can share a few takeaways from what we’re seeing right now, which may give a little insight into what we can expect. As we enter the second half of 2021, we are not experiencing any decrease in demand for vacation properties in Tahoe. However, something has changed slightly in the last two weeks.
We’ve started to see more price reductions in our MLS. For example, there have been 33 price reductions in the Tahoe Sierra MLS since July 1st. It’s hard to say how much these price reductions reflect any real change in the market, as most of them are just examples of sellers overreaching on their price. This is common in a hot seller’s market, because many property owners aren’t motivated sellers, but rather are just testing the market with “make-me-move prices.”
I’ve also experienced a shift in how buyers are approaching their purchase. In the last three quarters of 2020 and again in the first two quarters of this year, many buyers have been “throwing money” at properties without doing much due diligence. In fact, the trend of buying properties sight-unseen carried over from 2020 into this year. However, I’ve recently experienced a little more thoughtfulness in the buying process. Buyers are doing more homework before they make their offers.
The recent price reductions and buyer behavior tell me that perhaps, we’ll see things calm down a little in the second half of 2021. A more balanced market would certainly be welcomed by the huge buyer pool for Tahoe properties. At this point, it’s all still to be determined. I look forward to keeping you informed on the market. Stay tuned and don’t hesitate to call/email me anytime.