The sequencing of Tahoe’s winter weather proved far less predictable than the productivity of local real estate. A gap in snowfall from early January until mid-April was abruptly truncated with above-average spring accumulation. While this wave of snow came too late for many to enjoy on the ski slopes, interest in local real estate remains abundant.
The continued shortage of supply returned the number of residential transactions to exactly the historical average for the month of April. While this represents a reduction of more than a third from the number of sales during this period last year, the pricing achieved across the span of these 100 transactions is astronomical. The average price of $1,582,670 is 17% higher year-over-year led by the tenth 8-digit transaction in Martis Camp in 2022.
Additionally, a very basic lakefront home on Tahoe’s North Shore sold for $6,450,000 as well as a non-lakefront property in Dollar Point for $5,350,000. Three homes in Lahontan closed between $3,895,000 and $4,495,000 continuing to normalize the $1,000 per square foot benchmark for updated property in that community. Other communities establishing new thresholds include Schaffer’s Mill and Gray’s Crossing each of which saw sales above $3,000,000 and Tahoe Donner with multiple transactions above $2,500,000.
As is typical of spring, inventory has seen a meaningful spike in the last 30 days. Current residential offerings stand at 189, approximately 8 weeks’ worth of supply and 50% more than has been available for much of the last year. Somewhat predictably, the owners of these listings are ambitious in their assessments of value. The median asking price is 22% above the median selling price; a number that is already 16% higher than a year ago. The average days on market for currently active listings is 89 whereas sales in April averaged just 7 days on market. With over 120 residential properties currently pending sale, there remains ample evidence that demand remains strong for listings priced reasonably: even by 2022 standards.
Whether the headwinds facing the national real estate market impact demand for Tahoe property won’t be evident for several months until consumers return to the region for summer. In the meantime, supply is likely to continue accumulating up to and beyond Memorial Day. Individual factors including rising interest rates, inflation and stock market challenges generally don’t have the same impact on Tahoe’s robust market as they would in primary home markets. However, when absorbed cumulatively amid a contracting economy, a slowing market may be expected. When considered in the context of the rapidly accelerating conditions of the past several years, some cooling seems inevitable and perhaps welcome.
Price Shifts Per Luxury Community
