Q1 2020 Real Estate Market Reports for North Lake Tahoe and Truckee
Quarter 1 Market Reports are in For Truckee and North Lake Tahoe!
Truckee Q1 2020 Market Analysis
Our biggest challenge in Q1 2019 was lack of inventory. Though it still felt like inventory was low we did see an overall increase in inventory which helped. Tahoe Donner, which accounts for a large percentage of Truckee inventory, did experience drops in both Average Sale Price and Median Sale Price over Q1 2019. The rest of Truckee, however, did see an uptick in both those categories. Condo sales continued to drag down overall averages. The Average and Median Sale Prices of condos across Truckee dropped which is a trend we saw through 2019. The luxury market in Truckee remains strong. Though the year over Average and Median Sale Prices, though down from Q1 2019, have been on an upward trend from Q2 2019 and higher than most quarters in 2018 as well. Marketing times across the board are starting to get a little longer which is not surprising given the global lockdown we are experiencing.
North Lake Tahoe Q1 2020 Market Analysis
Trends in the North Lake Tahoe area were similar to those seen in Truckee. Much Like in Truckee, North Lake Tahoe had much more inventory available in Q1 2020 than in Q1 2019. There was an overall increase in Days on Market and a year-over decrease in both Average and Median Sale Prices. However, the numbers are greatly impacted by a massive outlier sale from 2019. In Q1 2019, one of the large West Short estates sold for $37 Mil (Sold by Corcoran [Oliver at that point in time] by the way…). When you look more closely at each sector of the market it becomes more apparent that there was actual year-over growth compared to Q1 2019 when you don’t factor in the West Shore estate. For the North Shore non-lakefront homes, which accounts for a large portion of the market, the Average and Median Sale Prices had year-over increases and Days on Market were down ever so slightly. Unlike Truckee, Condos on the North Shore and Squaw had increase in Average and Median Sale Prices as well. Where as Truckee was experiencing a little lag in Q1, the North Lake Tahoe area was continuing on the positive trajectory that started in Q2 2019.
Looking Forward: Market Projections for North Lake Tahoe and Truckee
Shelter In Place orders were issued in California at the end of Q1 and the economic disruptions brought on by the Coronavirus began in the middle of Q1. Real Estate in the North Lake Tahoe and Truckee area has been holding strong. There have not been drastic price drops nor true lack of interest thus far. Inventory in Q2 2020 is extremely low thus far. We are likely to see even longer marketing times as there are clear challenges with selling right now. It is Q2 where we will start seeing the effects of the Coronavirus on the housing market. Given buyer optimism that I have seen thus far coupled with prices holding fairly steady I am optimistic that the housing market will not mirror the stock market.
You’re probably sick of hearing me say this but it is important to remember that the housing market and the stock market are not intrinsically connected, especially for Millenials who have only ever experienced a recession alongside a giant housing crash. I will save more on that for another day. Here are some links to previous posts dicussing this topic over the past few years:
