May often represents the pinnacle of listing season as many Truckee-Tahoe homeowners evaluate the utility of their second homes relative to use and maintenance. There will undoubtedly be an increase in listing activity as compared to the early months of 2021 as some cash out at record-breaking peak pricing, however, the sanctuary that Truckee-Tahoe has provided for so many over the last year is likely to have relatively few interested in exiting the region.
The contrast in the fear versus reality as relates to the performance of real estate in the Tahoe – Truckee region is never more evident than comparing April 2020 versus the most recent 30 days. In 2020, April and May represented the nadir of real estate activity as consumers hunkered down in the early days of quarantine rendering the market nearly paralyzed and even scuttling transactions that were in place coming out of the winter. April saw just 68 and May only 79 residential sales at an average sales price of $875,000.
By contrast, April 2021 saw 144 closings, a 111% increase, at an average price of $1,360,000. This performance continues a trend of seasonally adjusted record-breaking volume that began in June of last year.
As the volume of real estate transactions has exploded, prices have escalated by 51% on average.
As recently detailed by SFGate.com, during this time the $1,000,000 threshold has evolved from defining luxury to a baseline for most properties. In April 2020, 15 sales were at prices greater than $1 million representing 23% of all transactions. In the most recent month 70 sales met or exceeded $1 million; 47% of all transactions. In fact, year-to-date sales of 7-figures and above have already eclipsed the 12-month mark for many previous years.
Notable among transactions in this category over the last month are the absence of mega-deals on Tahoe’s waterfront that often push above $10,000,000 and drive statistical averages higher. While this April included three Martis Camp homesites, it was pushed higher by upper-echelon sales in Lahontan, Sugar Bowl, Old Greenwood, Squaw Valley and Tahoe Donner.
It is notable that among the 260 properties currently pending sale, 2 lakefront properties above $10 million are joined by a very few of the available homes in Martis Camp before finding $2+ million transactions pending in neighborhoods including Ponderosa Ranchos, Donner Lake (non-waterfront) and other areas that had not previously broken through this barrier.
And while inventory has slowly crept up, as is typical of the season, toward 200 units, absorption is more than keeping pace. In fact, the current supply of available listings is now less than a single month.
A brief lull between seasons may give the area a moment to catch its collective breathe and prepare for what promises to be another summer of exceptional activity. I look forward to keeping you updated on real estate activity and the incredible lifestyle that accompanies it.