Early returns on 2021 show no abatement of the frenzied real estate conditions that dominated the Tahoe Truckee region over the past year.
January is typically the low point for transaction activity in any given year but does offer an early snapshot of conditions to follow. The most recent 30-day period saw 113 residential transactions. While a fraction of the monthly loads throughout the second half of 2020, this represents the highest ever transaction volume to open a year. This figure represents a 20% uptick from 2020; a month that was considered robust before the world was fundamentally altered.
Dollar volume outperformed as well totaling $175,000,000; an amount most typical of peak summer months. Average price surpassed $1,500,000; an extraordinary figure driven higher three sales that account for nearly 25% of the entire month’s volume. A single $30 million lakefront transaction plus two sales in Martis Camp totaling $18 million led the charge followed by 40 other transactions at prices greater than $1 million.
January’s median price was $873,000; 34% higher than the same month a year ago.
Perhaps most extraordinary is nothing that this record volume came amid a dire lack of available supply. 195 total active listings represent just over 1-month supply; a number that has held steady for most of the last 10 months. Of the 113 transactions in January, the median time on market was a mere 20 days. This rapid absorption demonstrates that a vast number of capable buyers are poised and ready to purchase at the first indication of compelling inventory. These offers continue to be largely driven by cash (40%) or cash-capable purchasers.
With demand so clearly overwhelming supply, there does not appear to be an end in sight for the current bull market. Even with the potential for “normalizing” conditions, the want for an escape appears to be an inelastic commodity. With plentiful snow and increasingly available services, the Tahoe-Truckee region promises to be a very inviting landing spot.