2021 was another amazing year! While our market did slow down, somewhat, 2021 was still a very strong sales year with property values continuing to increase.
In all our geographic areas the dollar volume of residential units sold decreased 25% or more (except in Tahoe Donner at less than 25%). In all the four areas around Lake Tahoe as well as in Truckee and Tahoe Donner the number of units sold decreased by between 19% to 37%.
So why was this an amazing year? Two reasons:
Median Price increased in all areas for both single family homes and condominiums from 17% to 43%.
Although the units sold and dollar volume were lower than 2020, overall statistics were significantly higher than any year before 2020.
Over the last two years the lower priced part of our market has risen significantly. There were more single-family homes sold at over $1,000,000 than under that price point and more condominiums over $500,000 than under that price point. That is new, it used to be the inverse.
Due to very high demand and low inventory, the Median price of single-family homes have risen, in many areas, to over $1,000,000 and many buyers have turned to condominiums which has caused condominium prices to go up. We are also seeing an increased interest in Shared Ownership listings, particularly high-end properties sold in shares.
This is also the case nationally with affordability becoming a challenge for some buyers. But Lawrence Yun, Chief Economist at the National Association of Realtors, expects more inventory this spring which will keep price increases lower:
“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
Bottom line:
Currently there is less activity in our market. Not because of a lack of demand but due to low inventory. Most listings sell very quickly, often with multiple offers which makes it a great time for sellers!
In my opinion it is also a great time for buyers because I think values will continue to rise thus new buyers will see the value of their purchase start to increase almost immediately and continue as the year goes on.
Links to 2021 Year End Area Statistics
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