North Lake Tahoe – Truckee Home Values | Market Report Mid-Year 2020

Here is your mid-year Tahoe real estate review for the North Lake Tahoe – Truckee region for single-family homes sold.

It is important to note that the numbers are for the cumulative first six months of 2020, but due to the COVID-19 interruption, we do have a tale of two very different markets.

Prior to the COVID-19 shut down in Mid-March, the Tahoe market was just starting to wake up from one of our slowest selling seasons – our winter months, when everything came to an immediate stop.

Out current Tahoe real estate market conditions are significantly different and strongly favor sellers as of the date of this post.

Buyers and Sellers that are looking to do a transaction in our area are advised to get the most current market data for the past 30-60 days as the year-to-date numbers may not be really reflective of the current market conditions. 

The mid-year sold prices for single-family homes continue to show a small decrease over 2019 price levels for the first six (6) months of 2020, but short-term pricing has moved above the 2019 pricing levels.  

Active inventory levels are critically low.  On January 1, 2020, there were 291 homes for sale, on July 16, 2020, there were only 163 homes for sale.  A decrease of 44% in available properties for sale. 

Another example of how different the first cumulative six month results are to just the past thirty days can be seen in the days on market measurement tool for newly listed homes that have come on the market since June 1, 2020.

Looking at a much shorter time period, for those homes listed for sale since June 1, 2020, that have either sold or are currently sale pending the number of days for new listings on market is currently at eight (8) days. 

This shows the extreme comparison from current marketing time at an average of eight days on market to the cumulative number for the past six months of 76 days on the market, which takes into account older listings that have lingered on the market prior to the COVID-19 interruption.

You can see on the graph below that the over-all homes sold price trend continues to move up from the market bottom in 2011-2012 but is down slightly from 2019 for the first six months of 2020.

The North Lake Tahoe – Truckee regional single-family home prices are down -2.4% for 2020, with a median average sales price of $724,250 (TSMLS Areas 1-9).

However, if you look at the median average homes sold price for just the month of June 2020, the median average sold price is at $826,250, significantly higher than the year-to-date average of $724,250, and well above the 2019 average median home sold sales price of $745,000. 

Again, the reduction in the number of days on the market beginning in June 2020, along with an increase in price for the month of June, really shows the shift in the Tahoe market towards Sellers.

A common question I am often asked by Buyers and Sellers is:

• “What percentage of the listed price are Sellers getting on their Tahoe property?”

In 2020, Sellers realized 98.7% of their listed price to the sold average median sales price in the North Lake Tahoe – Truckee area (MLS Areas 1-9).  

Again, the six-month numbers are not necessarily reflecting current market conditions.

Since COVID-19 began, looking at homes that were listed for sale as of June 1, 2020, that have closed, that list-to-sale percentage is at 100.5%

All three of these indicators, along with the absorption rate are why there are a number of multiple offer situations, shorter days on market, and little to no inventory available.  

Absorption Rate:  Another market indication is the current absorption rate which is a measurement of recent sales (30 day period of time) when compared to the current inventory levels. This rate indicates if the market is favoring sellers, buyers, or is neutral.

• The current absorption rate for the entire Tahoe-Truckee Region as of 07/03/2020  is in a Sellers’ Market at 1.2 months of inventory (below 5 months of homes for sale is considered a Sellers’ Market), which is a drop of almost 4 months from last month (May 2020) for the entire region. 

• This is the most severe Sellers’ market I have seen in our area for the past fifteen years!    

Buyer Tips:  

• Showings | Virtual Tours – Use virtual tours when they are provided!  If you don’t see a link, ask your agent for one.  Many have them, but they don’t show up in the listing information.  Look at properties as soon as they hit the market – in person, or by video conference call with your agent.
• Local Agents – Work with a local Tahoe real estate agent.   They know the current market conditions and can help with video calls and get you critical information.
• Negotiate – Ask your Tahoe real estate agent for their advice and recommendations on how to negotiate and present your offer.  Multiple offers are now common and you need to be prepared to craft your offer to meet these new market conditions.
• Lenders – If your offer includes getting a loan, make sure your lender has pre-approved you.  Ask your lender the following questions:
  • Can they get your loan through underwriting in 21 days or less?
  • Can they get your appraisal done in 21 days or less? 
  • Can they fund and close in about 30 days or less?
• Local Lenders – If you are buying a condo or townhome in the area and you will need a loan, make sure you do the following:
  • Use a local lender that has recently processed a loan in that specific complex.
  • Using a local lender that has recently approved that development will help you meet your contract deadlines and avoid a lender denial on the complex. 
  • The Sellers’ Agent will give your offer more credit as a qualified buyer for knowing your lender is ready to go on the property.

Search all North Lake Tahoe – Truckee Properties (homes, condos, and lots) by Map Here:

North Lake Tahoe – Truckee Home Values | Market Report Mid-Year 2020 Summary:

Mid-Year 2020 | MLS Areas 1-9

• Number of Homes Sold in North Lake Tahoe – Truckee: 442
• Median Average Sold Sales Price for North Lake Tahoe – Truckee: $724,250
• Average Sold Sales Price in North Lake Tahoe – Truckee: $1,080,082
• Sold Price Range in North Lake Tahoe – Truckee:  $195,000 – $9.5 Million
• Percent (%) List to Sold Price Ratio:  98.7%
• Average Days on Market (DOM in MLS):  76 DOM
• Number of Active and Available Homes for Sale in North Lake Tahoe – Truckee as of 07-16-2020:  163 (TSMLS Areas 1-9)
• Pending Home Sales in North Lake Tahoe – Truckee as of 01-01-2020: 286
• Number of Distressed Homes Sold: – Court Approval, Short Sales, or REO Bank Foreclosures in North Lake Tahoe – Truckee:  0.90%  Total Four (4) Court Approval, one (1) Short Sale, one (1) REO|Bank Foreclosures (MLS Areas 1-9) two (2)

Here are the homes for sale in the greater North Lake Tahoe starting with the least expensive price point:

Here are the homes that are Currently for Sale in the greater Truckee area starting with the least expensive price points:

If you already own a home in the Tahoe area and want to know what is your property is now worth, call me, Laura Allen,  530.414.1260, for a confidential consultation.

If you want more long-term North Lake Tahoe – Truckee real estate data, check out the following table that has a lot of data going back over ten years.

I’ve included both the average median sales price and average sales price (in some cases there is a significant difference between the two, but the trends are the same direction for both) are included for each year in the following table. 

North Lake Tahoe – Truckee Regional Sold Single Family Homes MLS Areas 1-9 | 01/01/2020 – 06/30/2020

(This table is best viewed on a laptop, desktop, or a device with a larger screen.)

Year	Homes Sold	Median Average Sales Price	Average Sales Price	DOM	Lowest Price Sold	Highest Price Sold	% Cash Sales	%  Distressed Sales	Breakdown of distressed Sales
2020	442	$724,250	$1,080,082	76	$195,000	$9,500,000	31%	0.90%	2 REO’s 1 Short Sales 1 Court Approval
2019	1,039	$745,000	$1,126,433	67	$80,000	$37,000,000	31%	0.96%	2 REO’s 2 Short Sales 5 Court Approval
2018	1,083	$721,000	$1,238,011	66	$175,000	$40,000,000	33%	1.2%	8 REO’s 0 Short Sales 5 Court Approval
2017	1,160	$671,000	$1,007,618	75	$138,000	$15,000,000	29%	2%	15 REO’s 2 Short Sales 6 Court Approval
2016	1,104	$619,706	$985,471	90	$192,000	$17,500,000	29%	2.5%	13 REO’s 11 Short Sales 3 Court Approval
2015	1,002	$556,250	$847,261	97	$99,500	$9,950,000	30%	3,3%	15 REO’s 18 Short Sales 1 Court Approval
2014	930	$575,500	$928,718	92	$76,000	$14,000,000	33.8%	5.6%	24 REO’s 25 Short Sales 3 Court Approval
2013	1,051	$510,000	$723,767	89	$72,000	$9,495,000	28%	11.3%	47 REO’s 71 Short Sales 1 Court Approval
2012	1,044	$442,500	$666,855	115	$76,000	$17,250,000	32%	27.4%	139 REO’s 145 Short Sales 2 Court Approval
2011	883	$438,000	$603,539	115	$42,500	$6,450,000	33.5%	31%	136 REO’s 135 Short Sales 3 Court Approval
2010	797	$478,000	$715,847	116	$106,500	$12,400,000	29.9%	29.2%	127 REO’s  102 Short Sales 4 Court Approval
2009	728	$531,500	$687,447	120	$75,000	$6,288,000	28%	24.7%	96 REO’s 82 Short Sales 2 Court Approval
2008	569	$625,000	$876,360	129	$115,000	$20,000,000	20.4%	0.19%	1 REO’s 0 Short Sales 0 Court Approval
2007	632	$672,250	$913,346	120	$199,000	$12,500,000	16.1%	0%	0 REO’s 0 Short Sales 0 Court Approval
2006	734	$706,250	$922,328	94	$107,500	$16,700,000	13.8%	0%	0 REO’s 0 Short Sales 0 Court Approval

REO’s = Real Estate Owned, which is the name banks use for their bank foreclosed properties.

Short Sales = The owner does not have the money to pay off all of the debt and asks the debt holders to take less back in order to close the sale.

*YTD period is 01/01/2020 – 06-30-2020.

Data Source: Tahoe Sierra Multiple Listing Service (TSMLS). 

Year-to-date summaries are based on information from the Tahoe Sierra Board of Realtors (TSMLS). Due to TSMLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Laura Allen, or Coldwell Banker Realty does not guarantee the data’s accuracy.

Data maintained by the TSMLS’s may not reflect all real estate activity in the market, or include private off-market sales. All information is deemed to be reliable but is subject to change, modification, and/or correction without prior notice. If your property is currently listed for sale, or you have an active Buyer Representation Agreement, this is not intended as a solicitation.

Other Items of Interest:  One trend that continues on, despite the popularity of other newer areas and planned communities like Martis Camp, Lahontan, Gray’s Crossing, Schaffer’s Mill and Tahoe Donner.    

So far in 2020, we have not seen the lakefront highs that we did in 2018, and 2019, but the recent $32 million estate just listed in Homewood, would certainly put us back on mega-millions lakefront sales track!

While the inventory of lakefront properties is extremely limited, currently we have some homes on the market North Lake Tahoe lakefront homes.

The demand for executive mountain homes in the Truckee area continues to be strong with Martis Camp leading the way! 

The highest price property sold so far in 2020 was in Martis Camp.  It was an impressive $9.5 million home giving luxury buyers a number of locations in the North Lake Tahoe – Truckee area.

Looking to buy?  Search Homes for Sale in North Lake Tahoe and the Truckee area (below) by price range here:

• North Lake Tahoe Homes for Sale under $300,000
• North Lake Tahoe Homes for Sale under $400,000 
• North Lake Tahoe Homes for Sale under $500,000 
• North Lake Tahoe Homes for Sale under $600,000 
• North Lake Tahoe Homes for Sale under $700,000 
• North Lake Tahoe Homes for Sale under $800,000 
• North Lake Tahoe Homes for Sale under $900,000 
• North Lake Tahoe Homes for Sale under $1 million  
• North Lake Tahoe Luxury Homes for Sale