Lake Tahoe Real Estate Blog

The numbers are in and sales for single family homes are down for the 1st half of 2008 compared to the same period in 2007. It seems there are lots of buyers on the sidelines looking for good deals, and weakening sales prices offer more opportunities, especially if you know which sellers are motivated.

The median price for an Incline Village home sank to $1,042,500, down 13% from the median price in the first half of 2007 at $1,200,000. The average price was down 17% to $1,419,464 from $1,708,492 in 2007.

The median price for a condo in Incline Village dropped to $489,000 from $587,500 in the first half of 2008 from that period last year, a decrease of 17%. The average price for a condo was down 20%.

The lowest priced home to sell in 1st half 2008 was $560,000 compared to a $600,000 home sold in 2007. The highest priced home to date in 2008 is $6,700,000 down from the $8,500,000 home sold 1st half 2007.

Average list to sale price in 2008 is 90% compared to 94% in 2007 for the same period, showing some strength in buyer positioning in this down market. The average days on market is 154 in 2008 compared to 187 in 2007- are sellers more motivated to sell?

Through June 30, 44 homes sold in 2008 compared to 73 homes sold last year- this is a 40% decline in # of units sold. In 2008, 22 units sold over $1M and 22 sold under $1M, compared to 2007, 48 sold over $1M and 25 sold under $1M. More than twice the number of Million $ plus homes sold last year through June than this year.

View all of the homes sales for both the first half of 2007 and 2008

2007 1st Half Single Family Home Sales

2008 1st Half Single Family Home Sales

View the 2008 Midyear Home Sales Report for Lake Tahoe, note that the report includes PUD’s (freestanding townhomes) in the single family home category in Incline Village, whereas the stats reported above exclude PUD’s.

Tahoe Home Sales Stats 1st Quarter 2008

by Katie Shaffer
The Tahoe-Reno real estate market is experiencing a shift towards mid to lower range home sales (under $1 million) and away from multi-million dollar homes, according to first quarter stats released by Lake Tahoe-based real estate company Chase International.
The average price of a home throughout all of Lake Tahoe dropped under $1 million for the first time since 2004. The average price is now $909,919 (down38 percent). The median price of a home in Lake Tahoe is down 25 percent to $662,172. Homes sold for more than $1 million were down 57 percent while homes sold for less than a million were down only five percent.

“We’re seeing a considerable pick up in the lower end of the market, while high-end homes sales aren’t moving as vigorously as they were last year, first quarter,” Sue Lowe, vice president of Chase International, said.

Tahoe City experienced a 25 percent surge in the sale of single-family homes under $1 million, while sales of homes over a million dropped 33 percent.

Overall sales volume in Tahoe City is down 25 percent, however total units sold is up nine percent. The average price of a home in Tahoe City is $856,152, down 33 percent from $1.2 million this time last year. The median price is down 22 percent to $575,000 (the median price is the point where half the homes sold for less than the median figure and half sold for more).

Lake Tahoe’s East Shore also saw a significant increase (63 percent) in homes sold for less than $1 million and homes above $1 million were down 40 percent. And though overall sales volume was down 48 percent, units sold were up six percent. The average price of an East Shore home fell 51 percent to $1,183,363 and the median dropped 34 percent to $775,000.

“The market is currently filled with opportunity,” Lowe said. “People who are really looking to invest in real estate are buying right now and there are fantastic opportunities for first-time homeowners as there are some great deals out there.”

South Lake Tahoe remains the least expensive area to buy a home on the lake, averaging $479,894, a 14 percent drop from first quarter 2007. The median price dropped 17 percent to $400,000. Overall South Shore volume was down 27 percent and units sold were down 15 percent. Homes sold for under $1 million fell only ten percent, while homes over a million were down 63 percent.

Incline Village experienced some of the biggest decreases, with sales volume down 73 percent and units sold down 61 percent. The average home price dropped 31 percent, to $1,120,266, while the median fell 21 percent to $898,688. Homes under a million decreased 50 percent and homes over a million were down 71 percent. However, an Incline lakefront sold in the first quarter that was on the market for $32,500,000 and is not included in any of the MLS data due to the sales price being confidential. If this number had been included in Incline’s statistics, Incline’s numbers would have faired much stronger.

Overall sales volume around Lake Tahoe was down 48 percent with a 20 percent decrease in homes sold. While Lowe believes the market is beginning to level, she notes that theses percentages are affected by a handful of ultra high-end sales this time last year (six homes were sold for more than $5 million during first quarter 2007). This year there have been only two sales over $5 million, one of which was not included in this MLS report.

Except for a four percent increase in units sold for less than $500,000, the sale of condos was also down around Lake Tahoe, with volume and units sold down 50 and 32 percent respectively. Units over $500,000 dropped 71 percent. The average price fell 18 percent to $437,174.

Despite a national slow down and the decrease of multi-million-dollar home sales around the lake, Truckee’s luxury market continues to grow. Volume and units sold were down 19 and 23 percent respectively, but homes over a million jumped 56 percent and the average home price rose ten percent to $912,013. The median price rose three percent to $690,000. Homes sold for less than a million were down 37 percent. The sale of condos over $500,000 was also up in Truckee (43 percent), pushing the overall volume for condos in that area up 86 percent.

Reno/Sparks, Nevada checked in with decreases across the board. The average and median home prices both fell eleven percent to $344,408 and $270,000 respectively. Homes under a million dropped 31 percent and homes over a million saw a 52 percent decline. Overall sales volume was down 39 percent and units sold down 32 percent. Lowe attributes the Reno/Sparks market slow down to the national decline in real estate, emphasizing that Reno and Carson City are permanent home markets, unlike Lake Tahoe’s second/vacation home market.

Carson Valley, Nevada saw a 200 percent jump in homes sold for more than $1 million, however the units sold in that category increased from only one to three. Homes sold for under a million were down 34 percent, with overall volume and units sold in Carson Valley down 38 and 32 percent respectively.

The average home price is down nine percent to $377,840 and the median is $289,950.

Headquartered in Lake Tahoe, Nevada since 1986, Chase International has seven offices in the region (Zephyr Cove, Glenbrook, Incline Village, Tahoe City, Truckee, South Lake Tahoe and Reno) and one in London. Chase and its exclusive affiliations handle a large share of the nation’s property. Currently Chase International has one of the top five most expensive properties ever listed in the nation – Tranquility located at Lake Tahoe, for $100 million.

Incline Village continues the trend in growing sales prices. The median price of a single family home or townhome in Incline Village, Nevada, was up 6% to $1,071,250 in 2007 compared to 2006. Note that this data includes both Single Family homes and PUD’s (freestanding townhomes). Sales volume increased 19%, as 183 homes sold in 2007 compared to a lackluster 162 sales in 2006. The number of units sold also increased 13% as there were 183 sales in 2007 and 162 sales in 2006. List-to-sale prices are remaining steady, though, averaging 94% of list price for 2007, with an average 183 days on market. Higher end homes are outpacing the low end market, as 109 homes sold for more than $1 million in 2006, up from 86 in 2006, a 27% change. 74 homes sold for less than $1 million in 2007, compared to 76 sales less than $1 million in 2006, a drop of 3%.Incline Village Single Family Home Sales by Area

Incline Village continues the trend in growing sales prices. The average price of a single family home in Incline Village, Nevada, jumped 30% to $1,888,372 year to date through September 30, 2007 over the same period last year. The median price was up 15% to $1,215,000 for the same period. Note that this data is exclusive of Condos and PUD (freestanding townhomes).Sales volume increased 16%, as 107 homes sold through the first 9 months of 2007 compared to 92 the same period in 2006. Sales volume is still down from 2004 and 2005, where an average of 160 homes sold in the first nine months. List-to-sale prices are remaining steady, though. Sales prices are averaging 94% of list price year-to-date 2007, compared to 93% for the same period last year.Higher end homes are outpacing the low end market, as 31 homes sold for more than $2 million in the first nine months, up from only 10 the same period last year. The average number of days on market has increased year-to-date in 2007 to 187, up from 158 days for the first nine months of 2006.Larger homes are also the top sellers, as the average square footage is up to 3,362 compared to 2,865 for the first nine months last year. More homes sold in Lake View subdivision over any other area in Incline Village, totaling 18 of the 107 sales year-to-date. Last year, most of the sales were concentrated near the Championship Golf Course, totaling 16 of the 92 sales for the first nine months of 2006.The trend for high-end home sales continues in Incline Village, in sharp contrast to the continued slowing markets in surrounding Reno, Nevada, Sacramento, California and other Lake Tahoe real estate markets. We noticed the trend early 2007 for higher end homes beginning to move, while a large inventory of moderate to low priced homes still remains for sale.

The average price of a single famly home in Incline Village, Nevada, jumped 21% to $1,569,000 in the second quarter of 2007 over the same period last year. The median price was up 11% to $1,2000.

Sales volume increased 35%, as 39 homes sold this quarter compared to just 29 the same period last year. Although sales volume is still down from the 2nd quarter 2004 and 2005, where nearly 70 homes sold, this is a dramatic increase, year over year.

Higher end homes are outpacing the low end market, as nine homes sold for more than $2 million this quarter, up from only four the same period last year and the average days on market dropped from 187 second quarter last year to 180 in this quarter.

Larger homes are also the top sellers, as the square footage jumped from 2,765 last year second quarter to 3,089 this year. More homes sold in Lake View subdivision over any other area in Incline Village, totalling 9 of the 39 sales. Last year, most of the sales were concentrated near the Championship Golf Course and Upper Tyner areas.

Another interesting statistic is the broadening gap between list and sale prices. The past two years, second quarter list price was 7% over sales prices, and only 5% the year before that. List prices were 9% higher than sales prices this quarter, yet Incline home sales are at highest price point ever in the second quarter.

The new Incline Village market data weighs significantly on the home sales front, flying in the face of most markets around the country. Local real estate salesmen have speculated that the higher end market has begun to move, while a large inventory of moderate to low priced homes still remain “for sale”.

Incline draws a majority of home buyers from the tech-rich Bay Area and Sacramento markets. This data shows more buyers are returning to the market since the low point in 2006, where home sales dipped slightly, but the overall market including condo sales actually grew 8% in median sales. The proximity of Tahoe’s four season resort community is more of a draw than ever in today’s climate of rising gas prices.

The advance in higher-end sales before low priced homes is a unique scenario; usually, a market rebound begins at the bottom, as bargain hunters have lifted the low-end sales, traditionally. Perhaps the percieved value is found in the lakeshore, lake view and other desirable homes, and buyers are getting back into the market knowing the most desirable real estate is now very reasonably priced.

Mark Buergin, CA & NV Broker, Chase International states “Despite the media’s generalized coverage on the decline in home sales, the high end real estate market is strong in many areas. Technology markets are doing well, and this is translating into more home buying up at Lake Tahoe. ” When asked his thoughts on the growth of the high end market, Mark contemplated “Contrarians often lead the turn-around in equity markets, buying when the masses continue to sell. In the current real estate climate, we may be seeing a flight to quality of the highest sort. Wealthy home buyers are looking for “bargains”, and this translates into lakefront homes and estates with panoramic views, leaving much of the lower market inventory untouched.”

We know scarcity is the one of the main factors driving the price of real estate at Lake Tahoe and Incline Village sub-market. Because Incline Village is almost built-out, the existing inventory will not increase in coming years while demand inevitably will. Buying a home in a prime lakeside neigborhood for $1.5 million in today’s market, may look like a “steal” five years from now, when a growing home-buying population competes for a shrinking pool.

Incline Village is still a reasonable proposition for many second homeowners compared to other resort areas. The proximity to a huge urban population along with the number of ski resorts, the draw of the lake, and a broad variety of outdoor recreational opportunities continue to fuel this strong real estate market.

Copyright 2007 Tahoe Homes