Tahoe luxury real estate market ends 2020 with record growth, powered by impressive summer and fall
Team Blair Tahoe reports the Tahoe region underwent the largest increase in year-over-year sales among all Northern California/Bay Area markets; 2021 inventory shortages and low rates will perpetuate current conditions.
Tahoe City, CA—The Lake Tahoe luxury real estate market has performed at a record level for the last half of 2020, despite facing unprecedented business challenges in the face of a national pandemic. The founding partners in the region, Team Blair Tahoe, reports that the greater Tahoe region experienced year-over-year luxury sales growth of 187 percent for the May to October period. Sonoma, (110 percent); Santa Cruz County (100 percent); and Monterey (94 percent) Counties saw the second, third, and fourth largest year-over-year sales increases in the Northern California luxury real estate market, according to analysis of MLS data by Compass chief market analyst Patrick Carlisle.
Luxury real estate in the Tahoe region is defined as homes that record sales at or above the $2 million threshold. Because of geographic proximity and buyer demographic similarities, the Lake Tahoe region’s (including Truckee) real estate market data is included with 10 Bay Area counties.
From May to October of 2020, average days on market for luxury homes in the Northern California region was 62, a 13 percent drop from the same period in 2019. In December 2019, the average was 109 days and in January of 2020, 94 days, demonstrating that pandemic-induced lifestyle relocations can be used to explain this year’s market performance. Highly favorable mortgage rates were also a factor.
“We couldn’t be happier to be helping so many families learn what makes Tahoe such a special place to live,” said Jamie Blair, founding partner and broker at Team Blair Tahoe. “Like so many other offices, we had no idea what to expect back in March, but we know now that the spring market wasn’t an anomaly, and that open air, the lake, and our lifestyle is a tremendous draw for people looking for sophisticated rural luxury.”
Median price for luxury homes in the Tahoe market for the six months tracked was $3,031,250, fifth highest among the 11 markets in the report.
Luxury sales have surged nationwide, recording an increase of 41.5 percent in the third quarter, compared to last year.
Government relief programs, rental market movements, and unemployment will continue to mix the economy with uncertainty, according to Blair. However, real estate hasn’t mirrored the overall mood of the economy, offering economists something positive to talk about.
Blair expects the new year to reflect current conditions, which suggests inventory shortages will slow the overall pace and volume of sales in 2021, but days on market and price metrics will remain as strong. Historically, winter is a buyer’s market.
“Mortgage rates and ongoing remote work trends should continue to back the luxury real estate market, and it will remain a seller’s market,” Blair said. “But no one can predict what impact the lingering pandemic and social challenges will have. We’re going to focus on our clients and our market, regardless of what arises.”
Team Blair Tahoe offers real estate services throughout the Lake Tahoe basin, including Nevada and Truckee.
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About Team Blair Tahoe
Team Blair Tahoe has been working in the Lake Tahoe region for 30 years, and thus, is recognized collectively for its local expertise, cooperation with colleagues, and ability to get the most complicated deals across the finish line. Founding members Jamison and Nicole Blair have built a team of hard-working, industry-savvy agents and staff to help them deliver an exceptional level of service to their buyers and sellers, and those referred to them. With the ability to cover every mile of shoreline around Lake Tahoe, there is no market need they are unable to address. All team members leverage the latest in web technologies to market listings and serve buyers, yet remain dedicated to time-honored networking and local connections as effective sources of business.