2022 Real Estate Market Report
North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums
Activity January through June 2022
Residential Sales Summary 2022
Total Residential Sales:
As you have likely heard, the real estate market is evolving. Despite the uncertainty, we have seen a “normal” number of sales in the Tahoe/Truckee residential real estate market. For the first half of the year, there were 572 residential sales which is right at 95% of the 5 year average (601) and 98% of the 10 year average (585). 114 residences sold in June, which skews farther from the 5 and 10 year averages for the month (139 and 128 respectively), but is right at the average for the last 10 “non COVID” years (115 sales).
Homes that sell continue to sell quickly. The median days on market, year to date for sold properties, sits at 9 (6 days for closings in June).
Median and Average Sales Prices: Sales prices are still near highs, but there are some signs of weakness. Seller’s who were a little too optimistic when they came on the market are making price reductions, and, for the first time in 2 years, buyers can consider making offers below asking in some circumstances. For the month of June the average residential sales price was $1.445 million and the median was at $1.13 million. For the first half of the year, the average sales price was $1.747 million and the median was $1.2 million.
For single family homes the YTD average is at $2.028 million (up from $1.768 in the first half of 2021) with a median of $1.323 million (up from $1.2 million in the first half of 2021). The month of June came in at an average of $1.493 million and a median of $1.15 million. Comparing those numbers to 2019 (the last “normal” year prior to covid) is incredible. For the first half of 2019 the average single family home sale was $1.233 million and the median was at $755,000. That’s a 64.5% increase on the average and a 82.9% increase on the median.
Active Residential Inventory:
We are into the time of year when we typically see the highest level of inventory. We are up to 347 residences actively for sale (291 single family homes and 56 condos), after bottoming out around 80 in March. Last year, at this time, there were about 170 homes actively for sale. That said, inventory is still at the lowest levels we have seen historically prior to COVID (Around 55% of the average for the 5 years prior to COVID and 40% of the 10 year average) for this time of year.
The 205 new listings in June marks the 2nd lowest June total in 10 years. For 14 consecutive months the number of new listings for that month has been below the 5 and 10 year averages. In each of those 14 months the number of new listings has been among the 3 lowest totals for that month in the last 10 years.
Current Pending Sales: The number of pending sales is at 136 (up from 120 last month). About 90 residences went into contract in June (down from 110 in May).
Current inventory represents a little over 3.85 months of supply relative to June activity. It’s not the red hot seller’s market we saw the last 2 years, but it’s still not a bad time to be a seller!
Sales Under $500,000: For the first half of the year, there were there were 37 residential sales under $500k, representing 6% of total sales. In the same period in 2021, 11% of sales were in this range.
Mid-Range Market Sales $500,000 to $999,999: Year to date, 186 residences sold between $500,000 and $999,999, representing 33% of total sales. For the same period in 2021, 42% of sales were in this price range.
High End Home Sales $1,000,000 to $1,999,999: For the period 221 residences have sold between $1m – $2m, representing 39% of total sales. For the same period in 2021, homes sold in this price range represented 32% of total sales.
Luxury Home Sales Over $2 Million: 128 residences have sold over $2 million, representing 22% of sales. This includes 25 sales over $5 million, of which 11 are over $10 million, and 1 over $20 million. For the same period in 2021, 123 homes sold over $2 million, representing 16% of sales.
What’s Going On Looking Forward?
The real estate market is definitely evolving rapidly. It seems that the extreme “covid” activity has eased and, statistically, things are trending to a more “normal” level of activity. If you compare activity YTD to 2021, it gives the appearance that things are quite slow. However, if you eliminate the COVID bump and compare only to years 2019 and earlier, it gives the appearance that things are fairly normal, to slightly more active than normal (especially if you look at the low number of days on market for sold properties).
What lies ahead in the 2nd half of the year?
Relatively low inventory is still a big force in the market. However, there are significant questions about how strong demand will be through the 2nd half of the year. There are major variables like inflation, possible recession, interest rates, the Russia-Ukraine War, short term rental regulations (call if you have questions!), and mother nature (snow, fires, etc), that are going to have an impact on demand. We are very interested to see just how big an impact it is. We expect “normal” (by pre COVID standards) activity, measured by number of transactions, through the 3rd quarter. Beyond that is more uncertain. For the last month multiple offers on properties has become less common and bidding wars (5+ offers) have almost gone away.
Sellers are still in the driver’s seat but buyers have some real leverage for the first time in 2 years. Buyer’s, you now have the following things working in your favor:
- The ability to negotiate price is coming back!
- The ability to inspect a property and have normal contingencies is coming back!
- The ability to negotiate repairs is coming back!
- Yes, interest rates are climbing, but if they continue to climb you will be glad you locked in now. If/when they do reverse course, you can refinance to take advantage!
Contact Your Coldwell Banker Agent Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.
Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data’s accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 01908304