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June 2014 Lake Tahoe Real Estate Market Report

By Dave Westall

Real Estate Agent with Oliver Luxury Real Estate DRE# 01796995

July 08, 2014 04:26 AM

The Lake Tahoe real estate markets continue to show strength in 2014 with single family home pricing up significantly over 2013. Now that we are half way through the year we continue to see fewer home sales than the previous year but average and median single family home pricing is rising due to a continuation of high buyer demand, low inventory levels, lower levels of distressed home sales (REO and Short Sales) and an increase in luxury homes sales. These are all signs of a healthy increasing market and we anticipate a strong summer of sales in the Lake Tahoe real estate markets.

Over the last month we have seen a bump in inventory which has been well received by buyers who have patiently been waiting for new homes to come on the market. With the current buyer demand these new listings are getting lots of attention and selling in faster than average marketing times and at lower list to sold discounts. As these new homes hit the market we are noticing that pricing on these homes is ticking up which speaks to the strength of the Tahoe markets.

Year over Year Market Comparison

January - June 2014 Statistics	January – June 2013 Statistics
388 Single Family Home Sales down 17% Average Price: $910K up 27% Median Price: $579K up 17% 32 REO & Short Sales down 59% 4 Sales Below $200K down 73% 76 Sales over $1M up 24% High Sale Price: $14M up 59% Low Sale Price: $76K up 5%	468 Single Family Homes Average Price: $669K Median Price: $483K 78 REO & Short Sales 15 Sales Below $200K 58 Sales over $1M High Sale Price: $5.79M Low Sale Price: $72K

*Lake Tahoe and Truckee Single Family Homes Including Lakefronts, MLS Areas 1-9.

Lake Tahoe Market Analysis Sales Chart

This chart shows that in the first 6 months of 2014 the Average home price in Truckee and N. Lake Tahoe is up 27% and the Median price is up 17% over the same time period in 2013.

Anticipated Market Conditions in 2014

High buyer demand
Limited inventory
Pricing Increases of 10-15% by the end of year
Fewer distressed sales (REO and Short Sales)
The higher end of the market will set records
Mortgage interest rates will continue to increase through the year and should be close to 5% by 2015. This increase will take away from buyer purchasing power as a 1% increase in loan rates equates to a reduction in purchasing power of approximately 10%

In the first 6 month of 2014 Oliver Luxury Real Estate has sold over $97.5M in Tahoe/Truckee real estate and we are the #1 Luxury Brokerage in North Lake Tahoe! It would be my pleasure to discuss your real estate goals, so please feel free to call or email me anytime.