Lake Tahoe 2021 Year End Sales Report
The strong demand for Bay Area buyers to own a home in the Lake Tahoe basin continued into 2021. However, the only sales metric to grow in 2021 vs 2020 was the rise in median prices. In some areas, this was as much as a 36% increase.
When comparing 2020 sales activity to 2021, we see a decrease in units sold year over year. The median prices for homes in virtually all areas of Lake Tahoe rose over 1 million. So, while sales activity was slowed by a decrease in inventory, overall dollar volume remained steady because of the rise in prices.
In 2020, 1,964 homes went into contract and sold. In 2021, that figure dropped a whopping 25% to 1,476. However, the sales volume decreased only 2%. This shows the impact of rising median prices. The question becomes whether the market will require any type of correction if affordability keeps buyers on the sidelines.
On the North and West Shore, the median price increased 36% in 2021. In 2020, $811K may have seemed expensive, but now that figure is $1.1 million.
It is interesting that Truckee values are on par with the North and West Shore. The median price for homes in Truckee in 2020 was at $865K. In 2021, that figure rose to $1.2 million. The median price increased 39% in 2021.
2022 will definitely be an opportunity to see what the market is willing to bear. We may see some price reductions, or the demand may keep driving price upwards. A real estate bubble is the rapid increase or inflated values due to unusual supply/demand imbalance. When the bubble bursts, a market correction usually follows.
Changes to Truckee STR Ordinance?
Would you like to have a voice in upcoming changes to Truckee’s Short-Term Rental Ordinance? They are conducting a Community Survey. The Town of Truckee is considering updates to the community's Short-Term Rental (STR) Ordinance, and we want to hear from you!
The updates that are being considered include the following three recommendations to the ordinance:
A cap on the number of STR registration certificates issued
The creation of a waiting period after a property sells before they can be eligible as an STR
The phasing out of STRs in multi-family housing units
To learn more about the process, to understand how these recommendations were made, and to take the survey, please follow the link below. The survey will be available from January 14, 2022 until January 24, 2022. The information received will then be presented to the Truckee Town Council at the February 8, 2022 Truckee Town Council meeting. Click for more information