Greetings from Tahoe,
Happy 4th of July! I hope you have something fun planned to celebrate.
Although it has been a while since my last newsletter, I have not forgotten about those of you who enjoy my weekly updates to stay informed on the Tahoe market. The velocity and momentum of our current market has kept me busy showing properties, juggling escrows and making sure our listings are top of mind for our local brokerage community and their buyers. Thank you all so much for your patience!
Our real estate market has undergone a radical change in the last 30 days. Due to pent up demand, low inventory, low interest rates, a whole lot of capital from the Bay Area, and a lack of travel opportunities for vacations this year, our market is experiencing a phenomenon of multiple offers and closings over asking prices. We are experiencing limited inventory and quick sales in all segments of the market, but it’s more prominent in certain sectors than others.
Despite the challenges with covid-19 and the short-term vacation rental restrictions, June 2020 finished strong with numbers exceeding those from last year.
The month ended with the following closed sales:
Residential Sales-Homes & Condos: 200 vs 132 (an increase of 52% over June 2019)
-Dollar Volume: $187,959,107 (an increase of 33% over June 2019)
Homesites Sales-Lots: 44 vs 30 (an increase of 46% over June 2019)
-Dollar Volume: $20,298,000 (an increase of 46% over June 2019)
As of today, there are currently 502 properties pending sale in our Tahoe Sierra MLS. This is over $463M worth of properties scheduled to close escrow within the next 30 – 45 days. Below is a breakdown of these pending sales:
- Single Family Homes-Total: 327-Under $1m: 216 Between $1m – $2m: 74
Between $2m – $3m: 23
Over $3M: 14
- Condos/Townhomes-Total – 65-Under $1m: 55
Between $1m – $2m: 5
Between $2m – $3m: 3
Over $3m: 2
- Homesites/Land-Total: 96-Under $200k: 52
Between $200k – $500k: 26
Between $500k- $1m: 12
Over $1m: 6
The sales data over the last 30 days indicates that roughly 60% of the buyers in June were focused on purchasing primary residences to live in Tahoe full-time. This is supported by the fact that there are now over 130 kids on the waiting list at the Truckee High School and almost 200 on waiting lists at the private schools.
These primary residential buyers have been focused on the full-time residential neighborhoods where they can mix in with the local community, whereas most second-home and vacation home buyers are more focused on the resort communities. The vacation home buyers have been a little slower to pull the trigger on something because they still don’t HAVE to have it. Nonetheless, it’s the 4th of July holiday week and all the lodging entities and vacation rentals are 100% booked. This week has historically been the kick-off to our selling season, and I expect we’ll see the same this year, ten-fold!
If you are considering selling, this may be one of the best windows for selling we have seen in a very long time. There is so much demand and very little supply. Based on the current turnover rate for residential sales and the current inventory (only 427 on the market), we have less than a two-month supply of inventory. If you’re interested in learning more about your property’s current value and potential sales price, please contact me. If you are currently on the market, hang in there. At the rate we’re going, almost every single property on the market today will sell in the next 30 – 60 days.
If you are looking to purchase a primary residence or a vacation home in Tahoe, be prepared to act quickly. We are here to help you prepare. We have lenders to recommend, we’ll give you the market data you need to make informed decisions and we’ll give you a heads-up on upcoming listings that meet your criteria.
If you’re looking to escape to the mountains and enjoy recreating this summer in Tahoe, get your Passport now. Interest rates are low and there are great properties from which to choose. Tahoe ownership has never been more freeing! Let our team help you find your perfect Tahoe escape.