Since my last Market Report on 6/24 the North Tahoe – Truckee real estate market has continued to surge forward at an unparalleled rate. Here is what we have seen in the Residential Market (Single-Family Homes and Condominiums) in North Tahoe and Truckee, excluding Donner Summit, Sierra County & Surrounding Areas for the period of June 24 to August 3, 2020.*
In the last 40 days there have been 312 new residential listings of which 52% went into contract with a Median Price of $779,000. Half of those were in contract within six days!
Here are the current Statistics as 5:00 pm August 3rd
Total Listings 623
Active 278 – 45% Median Price $949,000
- Under $600 95
- $600K – $800K 75
- $800 – $1,000,000 46
- Over $1,000,000 62
Under Contract 345 – 55% Median Price $829,000
- Under $600K 92
- $600 – $800K 78
- $800 – $1,000,000 45
- Over $1,000,000 130
As you can see most of our sales activity (62%) is under $1,000,000 with almost half under $800K. That is also the price range with the lowest number of Days on Market and very often multiple offers.
Sold Inventory in the same 40-day time this year and last year.
- Closed Escrows 330 Median Price of $791,650 and Median Days on Market of 21.
- Closed Escrows 2019 159 Median Price of $689,000 and Median Days on Market of 17
What does all this mean? People are looking to get their piece of the Tahoe Lifestyle and the inventory is low and the market is competitive. This is happening across the country; a wave of urban flight is reshaping real estate markets from New York to San Francisco.
In Tahoe, real estate prices are rising, and the inventory has shrunk to about one-fifth the usual levels. Many buyers are finding themselves in bidding wars, well over asking price, and even some are offering all cash for site unseen.
Our market is HOT, HOT, HOT! Hotter than last month!
For those who have been thinking about selling their home, NOW IS THE TIME TO SELL!
For those thinking of buying I have these comments:
We are in a sellers’ market that is extremely competitive. Properties that are priced right are going into contract very quickly after coming on the market. In the under $1,00,000 price range we are often seeing multiple offers and the homes are selling at listing price or above.
Before buyers come to look at properties, they need to prepare to make a purchase by getting pre-approved for a loan, not pre-qualified! They should be ready to decide quickly and act quickly when they see the home that feels right to them. Finally, they should expect to pay asking price or possibly over asking price. Low offers will not succeed.
After reading this you may think it is not a good time to buy?
That is not correct.
NOW IS A GOOD TIME TO BUY.
Better than it will be in the next few years. Why, because prices are rising, and that will continue due to high demand and low inventory and very favorable interest rates; the 30-year fixed-rate mortgage average is down to 2.99%, the lowest in its history. These low rates give you more buying power. When rates go up, and they will, your buying power will go down. On a $300,000 loan a rate increase of 1% equals a payment increase of $200 more per month; on a 30 year loan that is $72,000!
Contact me for a no obligation discussion of your real estate needs.
*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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