Tahoe-Truckee Market Update: Market SnapshotMike Montalbano, September 23, 2019 in First Snow, Market Update
We received our first snowfall of the season and it was quite a sight. Snow has flown on a few occasions, although warming daytime temps have melted it very quickly. As a result of the precipitation the hiking and biking trails have been all time. Mountain biking has been the best it’s been all season.
What makes the Tahoe market unique are the emotionally driven purchasing decisions. With an ever increasing dependence on technology, Tahoe has come to represent a mountain retreat where families can come to unplug from hectic urban demands. Designing a lifestyle that prioritizes a connection to nature while emphasizing physical activity has proven a lucrative investment for generations of families.
Despite lower visitor rates, this time of year signifies the busiest months for real estate activity. The region will experience the largest percentage of home sales in the calendar year over the next 5 weeks. At this moment 167 properties are pending sale in North Lake Tahoe, compared with just 649 properties actively listed. The current absorption rate suggests a meager 3.9 months of supply, with 6-7 months representing a healthy inventory level.
Over the past 30 days median marketing time was 26 Days on Market, compared to the same period from Prior Year at 24 DOM. While this same period also saw a slight decrease in trade activity, 19 fewer properties changed ownership, both Median Price and Average Price Sold saw huge jumps – up 6% and 12%, respectively.
While out of area real estate markets have experienced normalizing trends over the past few months, the Tahoe market continues to demonstrate incredible strength. All bull markets eventually come to an end, as will the current one. During this peak 2019 season; however, all indicators suggest a strong few months are ahead of us to close out the year.