Our market is still continually active and extraordinarily strong, but it has softened a bit from last month. This is not surprising. Usually in October our market slows down due to a lower number of visitors. What is surprising is the incredible number of units sold, the amazing total dollar volume, and the increase in prices that we have seen since the opening of California back in May. The 3rd Quarter of 2020 was a continuation of the 2nd Quarter with huge increases in all categories in the Truckee Tahoe markets compared to 2019.
October Numbers
Here are the October statistics for the sales of Single-Family Homes and Condominiums in West and North Tahoe and Truckee, excluding Donner Summit, Sierra County and surrounding areas compared to September 2020 and October 2019
| Categories | Total | September 2020 | October 2019 |
| Units Sold | 247 | -10% | + 37% |
| Total Dollar Volume | $283,148,079 | -17% | +46.7% |
| Average Price | $1,146,348 | -7.5% | +15.2% |
| Median Price | $815,000 | -2.4% | +15.9% |
Interpretation
We are still in a low inventory – high demand situation, which is keeping property values high. We are having multiple offers on many properties. We are also seeing some price reductions on properties that have been overpriced. In the ski communities of Squaw Valley and Northstar the number of condominiums sold increased dramatically in October with 50% of the condominiums sold in those communities in the last six months closing escrow in October.
On the other hand, half of the single-family homes that sold in those communities in the last six months closed escrow in the summer. I think the majority of the single-family home buyers are making those homes their primary residence and the condominium buyers are purchasing a vacation/rental property.
It will be interesting to see if we have our usual activity slowdown in the holiday period between Thanksgiving and the New Year. If so, I do not think it will have a negative effect on values and I expect that by mid-January our activity will pick up and we will have a busy winter with strong sales activity.
What this Means to You
Property owners that have been considering selling, but are thinking it may be too late, in my opinion, are mistaken. The speed of the market will probably be slower than the past six months, which is typical in the winter, but interest rates will continue to be historically low, demand will still be high, and inventory will still be low. It may take a little longer to sell a property but ones that are priced right always sell. Why wait?
Potential buyers that are thinking they will wait because prices are going to go down are also mistaken. Nationwide, we are in a housing shortage and that is especially true here in the Tahoe Truckee market. Properties that have been primarily vacation homes are being purchased by people from the San Francisco Bay Area and the Sacramento Valley as primary residences and building costs are going up dramatically. Is that a situation that will lead to home prices dropping? I think not. Prices will continue to rise. As that happens, buying power for many will drop and they will lose their opportunity. Now is the time to act!
For More Information on the 3rd Quarter Check Out:
North Lake Tahoe and Truckee 3rd Quarter Market Report
Tahoe North & West Shore 3rd Qtr. Market Statistics
Truckee 3rd Qtr. Market Statistics
Lake Tahoe 3rd Qtr. Market Statistics
*Greg Rankin and Chase International do not guarantee the accuracy of this information. Statistical information gathered from the Tahoe Sierra Multiple Listing Service. Not all real estate transactions in our area go through MLS, therefore, this information may not be completely accurate. CalDRE License #00826938
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