First Half 2019 Market Report Lake Tahoe

The first quarter of 2019 began a decrease in sales volume, while prices continued to rise. This has continued into the second quarter and is not unique to Lake Tahoe. Many resort markets facing similar price rises are experiencing price corrections and slowdowns. This is happening currently in every market and especially the resort markets around the world.  This is an affordability issue where home prices rise due to strong sales and lack of supply.

Lakefront Sales Slowed

In 2018, the lakefront and luxury market was on fire, but in 2019 it has also slowed down. In 2018, we saw the median price of lakefronts soar as high as 8.6 million. Numerous sales in the years leading up to 2018 reflected the lower pricepoint of lakefront listings at 4 million. In 2019 the median price of a lakefront home on the north and west shores of Lake Tahoe returned to 4.4 million and this slowing in sales activity should allow for market balance. However, inventory remains low, so the 3rd quarter will give us a better idea of the lakefront market trends. Lakefront sales were up in the second quarter with 11 sales compared to the 3 sales in the first quarter of 2019.

Median Prices Rise Across Lake Tahoe

On the North and West shores of Lake Tahoe, the first half of 2019 shows 128 sales compared to 133 in the first half of 2018. As expected, the median price is up from $695,000 in the first half of 2018 compared to $753,000 in the first half of 2019. Sales numbers are significantly lower than what we saw in 2015 and 2016 which had 151 sales each of those years. Back then the median price was $595,000 so again, we see the results of demand and low inventory pushing prices beyond affordability. Currently we are seeing price reductions for the first time in many years.

Inventory is Finally Growing

The good news is that inventory is beginning to grow again. The lack of inventory had a large part in why sales ended up slightly lower in the first half of 2019 vs 2018. The second half of the year at Lake Tahoe is always the strongest so we expect to see sales numbers grow as prices adjust and inventory grows.

The luxury market is a slightly different animal and median prices can be skewed by one sale at 37 million, which happened on the West Shore between April and June 2019. Across Lake Tahoe, the first quarter of 2019 saw median prices between 900,000 and 1,100,000 consistently. During the previous year of incredible sales volume of luxury listings, which ranged from $5,000,000 to $25,000,000, we saw the median price fluctuate between $800,000 - $1,500,000. Compared to 2018, sales for homes over 1 million are down, but 2018 was a banner year for luxury sales.

Lake Tahoe Home-ownership Demand Remains Strong

Lake Tahoe will always have a limited supply to meet the growing demand of our large feeder markets. While affordability factors will help correct the market, we expect to see steady demand to meet the growing supply.

Whether you are thinking of buying or selling your luxury property at Lake Tahoe, I have access to the resources to help you. Contact me today!