North Lake Tahoe Market Report
Over the last eight months, we’ve experienced a continuous reduction of inventory. For example, the 30 listings that sold over the last 2 weeks were met with only 9 new listings. Currently, there are a total of only 380 listings in the Tahoe Sierra Board of Realtors.
At this rate, we are returning to a similar lack of inventory that drove so much competition this time last year. The only thing that is missing is the frenzy of buyers. Some buyers are buying, but without all of the drama of multiple offers.
Price reductions though, are few. Homes are still selling at 96% to 98% of asking price. Median sale prices remain relatively stable.
Over the last two weeks, 30 properties closed escrow, matching to a similar number in February 2023. Compared to this time last year, these numbers may appear small, but sales are depleting what little inventory we have left.
Although demand has decreased, so has the listing inventory. These factors are keeping home values stable. Those who believe we are going to see a price correction similar to 2008, are misinformed. Corrections come from over supply. What we are experiencing is more of a stall in activity.
The snowfall hasn't appeared to slow down sales and is expected to bring additional buyers into our area because of epic epic ski season. We expect to see activity pick up once buyers become more comfortable with higher borrowing costs and listing inventory grows.
Some buyers are waiting to see if interest rates will come down. After weeks of speculation about the FED rate hike, it finally came in at a 0.25 basis point hike today. The stock market, which matches luxury and lakefront sales activity, has been up and down over the last 60 days.
When the FED chairman spoke to Congress a few weeks ago, he indicated that an aggressive push against inflation would continue. Some were expecting another 0.50% hike and the stock market dipped.
News of the bank failures actually drove stocks up because investors believed it would scare off the FED. The banks were immediately purchased, which was good news for the banking sector, but bad news for mortgage lenders. Lenders are currently working with an 8% prime rate and reducing their margins. The stock market actually dropped on the news that the banking sector was shored up.
Sales in Lake Tahoe and Truckee appear to be stronger in communities like Lahontan, Martis Camp and Northstar. In the last two weeks, there was also a sale in Ritz Carlton Highlands at $5,750,000, and a sale in Grays Crossing for $2,212,000. A Meeks Bay lakefront sold for $3,100,000.
Other recent luxury sales include a home in Lahontan at $6,050,000 and a home in Martis Camp that sold for $12,295,000. These luxury neighborhoods are driving sales activity, and new luxury listings are also in these same neighborhoods. There are only a handful of lakefront listings.
In Agate Bay and Carnelian Bay, there are only 5 properties for sale. Listings range from a beautiful lakefront residence, offered at $9,475,000, to a home on Nightingale offered at $2,600,000. Another listing on North Ridge is offered at $1,899,000.
Luxurious Lakefront Setting
Buyers who are waiting for rates to fall back to pandemic levels may be disappointed. Currently rates are in the high 6s and will probably stay there or go above 7%.
For sellers, this is an excellent time to list and have command of the market. Having fewer listings to compete against, sellers can enjoy higher prices and a captive audience.
Contact me today for a free property analysis. We’ve had many great listings recently come onto the market, and I would love to show you a few of my favorites.
Trudi Lee has been selling and listing residential real estate at North Lake Tahoe for over 30 years. Her real estate philosophy maintains a meticulous attention to the needs of her clients…