Luxury sales continue to drive Lake Tahoe housing market
A strong luxury market propelled sales volume around Lake Tahoe in the third quarter as sales of single-family homes rose 26 percent from this time last year.
The continued increase came primarily from homes sold for more than $1 million, which rose 32 percent to 263 homes sold; while single-family homes of less than a million decreased by 40 units to 741.
The figures are part of a quarterly report released by Lake Tahoe-based real estate agency Chase International. The numbers compare all multiple listing service home sales from Jan. 1, 2018 through Sept. 30, 2018 to the same timeframe of 2017.
The east shore and Tahoe City saw the biggest increase in sales volume, up 59 and 47 percent, respectively. Tahoe City had the biggest jump in the sale of homes sold for more than a million, 39 percent. The lake’s east shore was the only area to have an increase in homes sold for less than $1 million (10 percent).
The median price of a home in Lake Tahoe is up 12 percent to $655,000. Incline Village had the biggest jump in median home price, up 16 percent to $1.225 million. South shore followed with an increase of eight percent to $475,000. It was also the least expensive area to buy a home on the lake.
“There is speculation the South Lake Tahoe numbers are not trending with the rest of the lake because of the pending vacation home rental ban presently on the November ballot,” said Susan Lowe, corporate vice president for Chase. “Many potential buyers are waiting to see the outcome.”
While luxury sales remain strong, the sale of homes under a million is in line with trends throughout the west.
Lake-wide, the number of homes sold rose only two percent. According to a recent report of pending home sales by the National Association of Realtors, the region saw the biggest decline in contract signings in August.
“The greatest decline occurred in the West region, where prices have shot up significantly, which clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points,” said Lawrence Yun, chief economist for the association.
The sale of condos followed the same trend, with a 14 percent rise in units sold for more than $500,000 and 14 percent decline in units sold for less than $500,000. Sales volume was up four percent around the lake with South Shore seeing the biggest jump (19 percent).
Truckee also saw an uptick in the sale of million-dollar homes, up 20 percent, with an eight percent decline in homes sold for less than a million. The median price of a home in Truckee is up nine percent to $729,000.