Lake Tahoe 2021 Luxury Market Report
The Chase International Luxury Market Report for Lake Tahoe in 2021 shows how the ‘great migration’ has continued to reduce inventory, while driving up home values. At the end of the 3rd Quarter 2020, there were 430 homes sold over $1 million. Year to date in 2021, we’ve already sold 555 homes over $1 million, a 29% increase year over year.
Affordability May Slow Activity
Year over year, the South shore of Lake Tahoe had an 88% increase in sales, followed by the North and West Shore at a 56% increase in unit sales. However, a lack of inventory has begun to change the market as home values are being driven up and beyond affordability.
The prospect of interest rates rising could also become a factor in slowing the market as the Feds work to offset inflation. If you are on the fence about whether to list your home for sale, this might be the best time to do so. You can use this link to get a free estimate of your home’s value.
Chase is the Leader in Luxury Sales
Chase International sold three of the top four Incline Village and Crystal Bay homes in 2021. We are the luxury leader for the Lake Tahoe market. These sales were $32.5 million and $25.4 million. These ultra-high-end sales are redefining the luxury market price points.
Sales volume was up 72% on the North and West shores, with a 76% increase in median prices. Truckee had 389 homes sell for over $1 million, an increase of 36% over 2020.
We’ve seen this pattern in past markets where the increase in median sale prices tends to slow the market. Affordability always kicks in to correct any run-away market.
Zillow Lays off 25% of Workforce
Another sign of the changing market is from Zillow, the popular digital real estate platform. They just announced that they are laying off 25% of their workforce and closing Offers, it’s home buying and flipping business.
While economists do not expect any type of real estate crash like 2008, they are seeing indicators that the market is returning to normal. An article in Business Insider described how buyers are slowing their heels amid the reduced inventory and sky rocketing prices. The 3rd quarter real estate market report for Lake Tahoe also shows sales have come down from their peak in the 2nd quarter.
Featured Northstar Listings
The following listings are in Northstar, one of my favorite neighborhoods at Lake Tahoe. With close access to the Northstar Ski Resort in winter, and a golf course during the summer, this is a popular community. The Ritz Carlton and surrounding neighborhoods showcases the best in luxury living at Lake Tahoe. Within the older parts of Northstar, you can still find great values.
This superlative Northstar home is beyond compare. A 2 story wine cellar spirals down from the main level dining area to the enchanted rock framed bar and family game room below. Step outdoors to the in-ground hot tub, level lawn and horseshoe pit, all with distant mountain views. Sophisticated blending of wood species - mesquite floors, reclaimed barn wood siding, mahogany cabinetry, a hollow log slide - demonstrate the genius of the architect Greg Faulkner. A stunning expression of rustic mountain living.
Situated in an exclusive neighborhood at Northstar, this custom-designed timber-frame home boasts craftsmanship throughout. Minutes from Truckee and Lake Tahoe, you can immerse yourself in the mountain lifestyle with the comforts of a luxury home, world-class skiing, hiking, and biking right in your backyard. The open living space is ideal for gathering. Downstairs, guests can retreat to their own private living quarters. HOA includes access to outdoor pools, kids area, tennis courts & fitness center.
I’ve been in the real estate market for many years at Lake Tahoe and have observed the cyclical behavior when home values sky-rocket because of a lack of inventory. Inevitably, there will be price reductions and sellers who have waited, may begin to enter the market for an opportunity to get the best possible price. Don't wait until price reductions begin to scare away buyers. List your property today!
Get your no obligation value estimate on your home by clicking on this link.
Whether you are buying or selling a home at Lake Tahoe, my strong negotiating skills will ensure your success. Contact me today for more information about the changing market.