TAHOE MOUNTAIN REPORT TRUCKEE/TAHOE MARKET OVERVIEW
OFFICE LOCATIONS
NORTHSTAR 3001 Northstar Drive Truckee, CA 96161
OLD GREENWOOD 12915 Fairway Drive Truckee, CA 96161
GRAY’S CROSSING 11406 Henness Road Truckee, CA 96161
530.550.2000 | info@tahoemountainrealty.com | tahoemountainrealty.com | BRE 01995145 | PO Box 3757, Truckee, CA 96160
TRUCKEE/TAHO TRANSACTION VOLUME COMPARISON 2000
2,348
1800
1,746
1600
1,620
1,634
1400
1,428
1,352
1,488 1,377
1,252
1200
1,578
1,412
1000 800 600 400 0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
AVERAGE SALES PRICE $2,000,000 $1,047,342
$1,000,000
$1,133,663
$900,000
$821,430
$800,000
$832,540
$907,330 $854,649
$685,247
$700,000
$601,217
$600,000 $500,000
$759,693
$562,538
$513,177
$400,000 $300,000 $200,000 $0
2010
2011
2012
2013
2014
2015
2016
w w w .TAHOEMOU N TAIN REALTY .c om
2017
2018
2019
2020
E M A R K E T OV E R V I E W LUXURY MARKET OVERVIEW
SUMMARY
> $1MM
> $2MM
> $5MM
> $10MM
2012
134
54
8
4
2013
178
63
10
2
2014
249
107
13
3
2015
202
73
17
1
2016
299
111
22
2
2017
346
105
23
2
2018
386
147
34
7
2019
348
94
25
5
2020
723
257
57
5
ACTIVE LISTING INVENTORY 4000 3500
3,346
3000 2500 2000 1500 1,393
1000
1,598
1,803 1,075
0
766
683
500 2010
2011
2012
2013
2014
2015
640
2016
516
495
2017
231
2018
2019
2020
MARTIS CAMP VS TAHOE LAKEFRONTS MEDIAN SALES PRICE
2010
MARTIS CAMP
LAKEFRONTS
$2,295,000
$3,700,000
2011
$3,412,500
$2,937,500
2012
$3,300,000
$3,200,000
2013
$3,297,500
$3,450,000
2014
$3,333,140
$3,025,000
2015
$4,650,000
$3,651,774
2016
$4,325,000
$4,176,000
2017
$4,466,000
$4,176,000
2018
$4,675,000
$3,747,000
2019
$5,100,000
$4,287,500
2020
$5,626,000
$4,388,000
$6,000,000
$4,500,00
$3,000,000
$1,500,000 0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019 2020
D a ta collec ted January – Decemb er 2 0 2 0 . Data c o n tai n ed i n th i s re por t is from the T a hoe Sie rra B oa rd of R e a ltors. Infor m a t ion is d ee me d rel i abl e b u t n o t g u aran teed . Co n sul t yo u r T a hoe Mounta in R e a lty B rok e r for m ore inform a tion.
MARKET NEWS Greetings – 2020 was the most remarkable year ever for real estate in the Tahoe – Truckee region. The function that mountain housing played for consumers can be construed in many ways, whether fundamental shelter during times of quarantine or a haven from a tumultuous reality. Regardless of definition, Tahoe became a destination universally embraced over the last year. Accordingly, each shock event that transpired in 2020, from pandemic to wildfires to political and social unrest, created a distinct wave of demand from those for whom Tahoe offered sanctuary. For most consumers, interest in acquiring mountain property had a sense of immediacy to it. As such, completed homes in new or updated conditions were among the hottest of commodities. For many, the sense of permanence necessitated different programming whether space or setting. This concept generated a wave of pre-sale activity that drove an already bustling new construction market to greater heights while doubling demand for vacant land year over year. While easy to ascribe this tidal wave of demand to the pandemic, the seeds of this activity have been nurturing for quite some time. In the post-recession era, the Tahoe region, specifically newer resort communities around Truckee, have become a more permanent home to an increasing number of Bay Area emigrants who are untethered to a traditional office routine. Many have abandoned their San Francisco roots entirely while others have defied the traditional weekend travel pattern by finding a form of hybrid residency that keeps a foot in both the urban and mountain world. While demand has been spread across all price points, activity has been increasingly biased toward newer, amenitized communities that offer access to the active lifestyle pursuits that personify the region as well as modern architecture and built-in community programming and interaction. As a result, sales at prices greater than $1 million more than doubled year over year to a remarkable 723 transactions. The trajectory of 2020 by any measure has been incredible. The frenzied buying and tight supply were stark reminders of the bubble times that preceded the 2008 recession. While memories remain long, there are some fundamental differences in the most recent year. Namely, consumers were not buying with an assumption of appreciation. Their wants were so much more immediate that many are assuming some level of depreciation in the immediate near term and have accepted this as the cost of the utility value provided by the home. As multiple offers drove prices well above asking in many cases, the questions being asked by consumers were less “what is it worth” and more “what is it going to take.” Correspondingly, an inordinate number of purchases were made with cash; often out of necessity to offer sellers maximum security and efficiency when being compared against competitive bids. In 2020, 35% of all transactions were made with cash. This compares to 15% at the market’s prior peak in 2006. Ultimately this reveals not only the urgency in today’s consumer but also the remarkable wealth to have the capacity for such a purchase without needing to liquidate a primary home in the Bay Area. With demand unwavering and supply exhausted, it appears that 2021 will show little erosion of the gains made over the last year. While the world yearns for a return to normalcy, the revelation of the benefits inherent to a mountain lifestyle are likely to linger in a way that keeps Tahoe – Truckee on the forefront of consumers’ minds. Best regards, Jeff Brown
General Manager Tahoe Mountain Realty
530.550.2000 | info@tahoemountainrealty.com | tahoemountainrealty.com | BRE 01995145 | PO Box 3757, Truckee, CA 96160