Lake Tahoe Style • March 4, 2023

Mountain Home Interior Design Elements

by Ethan Pontz

spiral staricase

When decorating your mountain or lakefront home at Lake Tahoe and Truckee, there are many design styles to choose from. These range from a rustic mountain feel to mountain modern, which uses clean lines and neutral colors to focus attention on the outdoor landscape.

Before choosing your furnishings, use these elements of interior design to help you approach it like a professional.

Balance and Symmetry

Approaching your interior layout, consider the type of harmony that appeals to you. Balance in interior design can involve symmetry, asymmetry or a spiral flow. Regardless of which approach you choose, the overall design will achieve a type of visual stability.

For symmetrical design, use a mirroring effect so that each side equally reflects the other. Any furniture placed on one side of the couch or bed is mirrored or copied at the other side.

An asymmetrical design might include the same mirroring approach, but with more flexibility. Rather than place two identical loveseats on either side of a couch, you might use two chairs on one side that offer the same sense of visual weight.

Additionally, a spiral approach to balance can be used. You will establish a focal point and place furniture facing or radiating outward from this center of focus.

Harmony and Unity

Even while all rooms in a house may have their own sense of design, a unified style will ensure harmony. This can be achieved by using similar materials or design themes that are repeated in subtle ways throughout the home.

A great way to achieve a sense of unity in your design is by using compatible colors from a chosen palette. Using a color wheel will allow you to mix colors and create palettes with varying degrees of contrast.

Using visual repetition in your theme can connect and tie your interior design into a unified and cohesive whole. While colors or fabrics can vary, ensure all elements establish a sense of harmony.

Rhythm and Contrast

In addition to recurrence and continuity, rhythm in interior design captures the organized movement of patterns. When selecting furniture styles, you can create a unified feel or interesting contrasts and comparisons.

The repetition of shapes, colors, forms, and textures are one example of rhythm. A simple mountain brushstroke painting can be replicated in a textile pillow with a geometric design. Gradation uses different sizes of similar items to move the eyes visually through the room.

Contrast places items in opposition to create an interesting way of inspiring visual rhythm. Use light vs dark or smooth vs rough to create contrast. Using the color wheel, you can use a bold color and pair it with its opposite color.

Emphasis and Focus

Create a focal point in your interior design that captures focus upon entering the room. In an expansive hallway, a bold piece of art on a tall stand might be the center of focus. This will actually emphasize the expansiveness of the area. A monotone couch can pop with a bold and colorful throw blanket. This element of interior design will add vibrancy and spice to more subtle or monotone furniture.

In kitchens and bathrooms, a great way to add focus and emphasis is with eye-catching tile colors or boldly colored accent walls.

Lake Tahoe and Truckee are home to many architects and interior designers who can help you. The area has developed its own brand of Tahoe and Truckee style. It can range from Old Tahoe to Mountain contemporary. Once you’ve found the perfect mountain home, adding your unique sense of style is easy when you remember balance, rhythm and focal points while decorating.

Contact me today for a list of available homes for sale.

Things to Do Lake Tahoe • February 21, 2023

The Best of Lake Tahoe Skiing

by Ethan Pontz

skis in snow

When choosing a ski resort in Lake Tahoe that best matches your skill level, there are many choices. From world class ski resorts like Northstar and Palisades Tahoe, to charming, family-oriented hills with less crowds, Lake Tahoe has something for everyone.

Easy Access and Family Fun

Day trippers from Sacramento and the Bay Area enjoy the ease of access to ski areas like Sugar Bowl, located in Donner Summit, just off Highway 80. Originally built in 1939, with an investment by Walt Disney, Sugar Bow has retained its charm as a less crowded and glitzy resort.

One of the benefits of skiing at Sugar Bowl is that it is connected to the Royal Gorge Cross Country ski area. With combined terrains, guests can enjoy 6,000 acres of breathtaking mountain views and enjoy a mix of Nordic and Alpine skiing.

Other family ski areas in Donner Summit include Soda Springs Mountain Resort, Boreal Mountain and Donner Ski Ranch.

Best Beginner Resort

Homewood Mountain Resort is the perfect mountain for beginner skiers and boarders. Children can learn to balance themselves in their equipment as they ride ‘moving carpets’ and ski on bunny hills.

The terrain offers the best views of Lake Tahoe that can be found in any of the other ski resorts.

Located just down the West shore of Lake Tahoe, this is a great resort for intermediate skiers too, with 40% of the runs classified as intermediate. While 15% of the hills are for beginners, only 30% of the terrain is for advanced skiers.

The runs consist of groomers and on bad weather days, skiing within the protected trees can be more pleasant. The entire family can enjoy skiing down Rainbow Ridge, while taking in breathtaking views of Lake Tahoe.

While this is not a large resort, it is well laid out and offers terrains for all levels of skiing.

Best Groomers

If you are looking for corduroy groomers and lots of blue runs, you will love Northstar California. This ski resort is perfect for all levels and has many runs that wind through the trees. Skiers who are moving between intermediate to advanced, will also appreciate how many black runs are groomed well for mid-level skiers.

In terms of family fun, beginners will find instruction and easy hills. Advanced skiers will enjoy Lookout Mountain and the Backside. A diversity of terrain, with views across Martis Valley make Northstar a popular ski area. This means that it is also a more crowded resort, with the Village at Northstar in its center.

The best view is found at the 8,610-foot peak of Mount Pluto where you can see Lake Tahoe. However, this portion of the mountain is only for intermediate and advanced skiers. Some of the lifts take you into the posh Ritz Carlton, or enjoy the views from the deck of the Zephyr Lodge.

There are many shops and restaurants located in the Village center at Northstar.

Most Charming Resort

Alpine Meadows is part of the Palisades Tahoe resort, formerly called Squaw Valley. A new gondola connects the two ski resorts and lift tickets include access to both hills.

Enjoy 2,400 acres of diverse ski runs that include a few beginner hills at the base. Many locals prefer Alpine Meadows because the ski runs extend across the mountain and it can be less crowded than the Palisades Tahoe area.

With more than 100 trails, the vertical drop is only 1,800 feet and there are long runs that connect the various areas of the mountain. Ski trails meander through trees in a type of cross country style skiing that leads to the backside and the Sherwood chair.

What makes Alpine Meadows so charming is the quaint chalet that can be found mid-hill for afternoon snacks. The layout of the various runs also allow for a bit of meandering through forest glades and ridgetops.

Alpine Meadows has seven bowls and chutes that make it perfect for advanced and expert skiers too. 35% of the trails are black diamond, with many off-piste and backcountry areas. Intermediate skiers will find 40% of the trails are blue, with 25% dedicated to beginner skiers.

The Crown Jewel of Skiing

Palisades Tahoe is by far the most popular ski area on the North shore of Lake Tahoe. Famous for the 1960’s winter Olympics, many of the U.S. Ski Team train on this hill. However, skiers will find a diversity of terrain that is perfect for all levels.

This ski area has the longest runs and a funitel takes skiers to the top of the mountain, where they can ski Home Run to the bottom. Almost 45% of the mountain is dedicated to intermediate skiers, with only 25% for beginners. Extreme skiers flock to this mountain because of the challenging black diamond runs.

Palisades Tahoe also has many 6-pack, high-speed lifts and quads to move skiers quickly throughout the mountain. With the addition of the Gondola connecting to Alpine Meadows, guests can easily enjoy 3,600 acres of skiing at Palisades, and ride over to the 2,400 acres at Alpine Meadows.

The funitel will take you up to High Camp for amazing Lake Tahoe views and afternoon snacks. With so many ski runs to choose from, Palisades Tahoe is a great mountain if you are spending several days skiing at Lake Tahoe.

Contact me today to view available homes and condos for sale at Lake Tahoe. Many offer ski in/ski out access.

Market Reports • February 6, 2023

Activity January through December 2022

by Ethan Pontz

Coldwell Banker

2022 Real Estate Market Report

North Lake Tahoe -Truckee

Residential Properties – Single Family Homes and Condominiums

Activity January through December 2022

Residential Sales Summary 2022

Total Residential Sales:

They say the only constant in life is change, and the real estate market has embodied that over the last couple years. After a 2 year COVID Boom, 2022 was a year for the market to correct. While the year started off with one last surge, it slowed in Q2 and and drifted into 10 year lows for the number of closed transactions in Q3 and Q4. The headwinds were numerous, but included inflation, interest rates, stock market volatility, recession, the Russia-Ukraine War, and short term rental regulations (call if you have questions!).

For the year, the total number of residential transactions decreased by 30% YOY and ended up 25% below the 5 year average and 21% below the 10 year average. It was the lowest number of transactions in the last 10 years, coming in 7% lower than the next lowest year (1,238 sales in 2014).

Median and Average Sales Prices: The median and average price for the year actually went up compared to 2021, but that doesn’t tell the whole story. Sales prices have fallen off from Q1 highs. The Q1 median sales price for single family homes was $1.38m, but the Q4 number came in just above $1.1m representing a 20% drop. For condos, the Q1 median was at $770k, with Q4 coming in at $600k representing a 22% drop.

That said, prices are still at a very healthy premium from where they stood in 2019 (before COVID). For Q4 2022 the average single family sales price was $1.66 million and the median was at $1.1m. For Q4 2019 the average sales price was $1.03 and the median was $739k. That’s a 61% increase on the average and 49% on the median.

For condos Q4 2022 showed an average of $707k and a median of $600k. in Q4 2019 the average was $543k and the media $418k. That’s a 30% increase on the average and 44% on the median.

Active Residential Inventory:

Active Listings:

We are in the heart of winter, when inventory hits annual lows. There are 180 residences currently on the market. Last year, at this time, there were about 80 residences actively for sale, but in 2019 the number was closer to 450. Looking at long term numbers, inventory is still at the lowest levels we have seen historically prior to COVID (Around 60% of the average for the 5 years prior to COVID and 40% of the 10 year average) for this time of year.

For 20 consecutive months the number of new listings for that month has been below the 5 and 10 year averages. In each of those 20 months the number of new listings has been among the 3 lowest totals for that month in the last 10 years.

Current Pending Sales: The number of pending sales is at 62 (down from 67 last month). About 50 residences went into contract in December (down from 60 in November).

Current inventory represents a little over 3.6 months of supply relative to December activity. Historically any number below 5 months of supply is considered a seller’s market. But, this is a much more balanced market than what we saw the last 2 years, when months of inventory consistently hovered around 1.

Sales Under $500,000: In 2022, there were 70 residential sales under $500k, representing 6% of total sales. In 2021, 8% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999: For the year, 429 residences sold between $500,000 and $999,999, representing 37% of total sales. In 2021, 42% of sales were in this price range.

High End Home Sales $1,000,000 to $1,999,999: 430 residences have sold between $1m – $2m, representing 37% of total sales. In 2021, 558 homes sold in this price range representing 34% of total sales.

Luxury Home Sales Over $2 Million: 226 residences sold over $2 million, representing 20% of sales. This includes 46 sales over $5 million, of which 15 are over $10 million, and 2 over $20 million, and 1 over $40 million. In 2021, 265 homes sold over $2 million, representing 16% of sales.

What’s Going On Looking Forward?

The extremely strong “covid boom” real estate market is in the rearview mirror and, like a light switch, we turned to well below average activity in the second half of the year.

What lies ahead as we move into 2023?

Low inventory will continue to be a big force on the supply side of the market. While inventory is nearly double what it was last year at this time, it is still below half of what we typically saw at this time of year in the pre-COVID benchmark years.

There are significant questions about how strong demand will be. Major variables like inflation, interest rates, stock market volatility, recession, the Russia-Ukraine War, short term rental regulations (call if you have questions!) continue to adversely impact demand.

Multiple offers on properties has become uncommon and bidding wars (5+ offers) have almost gone away. Price reductions are commonplace (about 5-10% of listings seem to reduce their price each week), and many seller’s are withdrawing or cancelling their listings as we have experienced a very wet start to winter.

We expect below “normal” (by pre COVID standards) activity, measured by number of transactions, to continue in Q1 2023. Beyond that is more uncertain, but a strong winter can spur stronger activity (especially once the snow melts).

Sellers, keep in mind, this is still a much better time to be a seller than it was in 2019 (which seemed like a very healthy market at the time!). You can expect a similar amount of time on market, but much higher sales prices!

Buyers, keep in mind, this is the most balanced market we have seen in the last 3 years. You now have the following things working in your favor:

The ability to negotiate price is back!
The ability to inspect a property and have normal contingencies is back!
The ability to negotiate repairs is back!
Yes, interest rates are climbing, but if they continue to climb you will be glad you locked in now. If/when they do reverse course, you can refinance to take advantage!

Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.

Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Realty does not guarantee the data’s accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 01908304

[pdf-embedder url=”https://www.truckeetahoemountainhomes.com/wp-content/uploads/2023/02/Year-End-Tahoe-Truckee-Market-Summary.pdf” title=”Year End Tahoe Truckee Market Summary”]

Things to Do Lake Tahoe • February 2, 2023

Stifle Palisades Tahoe Cup

by Ethan Pontz

stifle palisades tahoe cup

Palisades Tahoe, home to the Winter Olympics Games of 1960, will be hosting the men’s World Cup races for 2023. They are one of only four US resorts to be featured on the World Cup circuit this season.

The Stifel Palisades Tahoe Cup will take place on February 24^th through the 26th. U.S. Ski & Snowboard and Stifel Financial on Tuesday announced the partnership, which gives Stifel naming rights to three of the four World Cup stops in the U.S.

The resort has received more than 360 inches of snow this season, with more snow on the way. The race will take place on the Dog Leg and Red Dog face, which features a new ski lift. The Red Dog lift’s capacity has been increased from three to six chairs and is now a speedier, five-minute ride.

The partnership, which runs through 2026, also includes the addition of prize money for American podium finishers on the newly named Stifel Success NorAm Tour. Additionally, it increases prize money for American podium finishers at the Toyota U.S. Alpine Championships.

In 2017, the Dog Leg and Red Dog Face were used for the women’s slalom and giant slalom World Cup races. Mikaela Shiffrin won both events and later described the venue as “one of, if not the toughest,” courses on the women’s World Cup circuit.

Those competing include Jett Seymour, Bridger Gile, Ben Ritchie, Luke Winters and River Radamus. The men return to the storied Olympic venue for a giant slalom and slalom race.

Palisades Tahoe, previously called Squaw Valley is known for its challenging terrain. The resort has produced countless Olympians and World Cup champions since the Olympics of 1960. There are seven Team Palisades Tahoe athletes currently on the U.S. Alpine Ski Team.

SCHEDULE

February 25, 2023
Giant Slalom

February 26, 2023
Slalom

Audi is sponsoring this event which includes free live concerts with 311, parades and fireworks too.

Click here for more information and to purchase tickets.

Real Estate News • January 13, 2023

Truckee Home Access Program (THAP)

by Ethan Pontz

. Truckee home access program

In an effort to address the lack of housing availability for the Truckee workforce, the Town of Truckee rolled out an innovative housing assistance program. Beginning in mid November, 2022, the Truckee Home Access Program (THAP,) began providing incentives for buyers and sellers.

THAP was developed to help generate a pool of homes that will be reserved for the full-time workforce in the Truckee region. Funded by Measure K, a Transient Occupancy Tax, THAP pays buyers, sellers, businesses, and developers by utilizing a 55 year deed restriction.

A THAP unit is a housing unit that is deed restricted so that it can only be used as a fulltime residence. It must be purchased by or rented to a household that meets the THAP program’s regional employment and income qualification requirements.

The high cost of housing in Truckee, along with the fact that 50% of homes are used as second homes, has made access to housing challenging for local workers. It offers a pathway to home ownership, while also expanding to include a higher area median income limit.

The goal of this program is to create a more balanced and supportive environment so local employees can either rent or own their home, utilizing both new and existing housing stock.

THAP Benefits

THAP works in several ways:

Buyers can apply for compensation up to $150,000 for a maximum $937,500 home purchase price. Payment can be used for down payment assistance, renovations, or other expenses.

Sellers can sell at a reduced price and apply for compensation to make up the difference between the reduced price and the appraised value.

Local Businesses can apply for compensation to rent or sell homes to local workers, including their own.

Developers can apply for compensation to build homes for sale or rent to local workers.

Deed Restriction

A deed restriction is a binding agreement that places permanent restrictions on the property. In the case of this program, the deed restriction will restrict the unit to use as a full-time residence, with occupants required to meet income and employment qualifications.

The amount paid for each deed restriction will not exceed the lesser of 16% of the appraisal value of a home or $150,000.

The deed restriction will remain with the property if the property sells within the 55 year deed restriction term. The terms the property is restricted by will reset for 55 years for the next owner.

Qualifications

To qualify for THAP, a household must have at least one member who is currently employed 30 or more hours per week. They must meet full-time employment equivalency with employer verification. They can also apply if they have a written offer for full-time employment. This employment site must reside within the Tahoe Truckee Unified School District.

A home buyer can participate in the program if they plan to purchase a home valued at no more than $937,500 and they meet the following requirements:

Buyers must work full-time in the region, and not earn more than the program’s maximum income limits ($241,080 for a household of 4.) They must agree to sell to another THAP qualified buyer at resale. Buyers can use the financial assistance for a down payment, home renovations, or other expenses

The buyer must plan to use the home as a fulltime residence. Their liquid assets cannot exceed 30% of the value of the purchased home.

Sellers can sell at a reduced price and apply for funding to make up the difference between the reduced price and the appraised value.

This program is a great way for homeowners and would-be buyers to help ensure the area retains access to the best services. Public servants, healthcare workers, teachers and even those who work in the tourism industry or local restaurants need housing.

This is the first program of its kind to address the rising cost of homeownership in a resort destination. The funding is expected to go fast so do not hesitate if you’re thinking of buying and selling!

Contact me today if you have any questions or would like to get started with the program.

For more information click here.

Real Estate News • January 3, 2023

California Promotes Granny Flats

by Ethan Pontz

A recent poll, highlighted how California has several cities ranked at the top of ‘happiest cities in U.S.’ California scored highest in quality of life, with less people living in poverty, higher marriage rates and lower crime rates overall. Now, if we could only house all of the people who want to live here.

For decades, California has scored poorly on its housing shortfall, estimated to be at 978,000 units. This is much higher than other states in the U.S. For example, Texas has a 322,000 deficit, New York is at 234,000 and Illinois and Georgia show a 120,000 unit deficit.

New Housing Production Shortfall

This shortage has been increasing since 1970. By 2018, the state was ranked 49^th in terms of housing units per resident. Prior to the pandemic, California would have needed to increase its current rate of housing production by 85,000 units per year. That hasn’t happened.

After the crash of 2008, many homebuilders stopped production. They were just beginning to increase their production prior to the rising interest rates of 2022 that stalled all real estate markets. While the FED was raising the prime rate to stall escalating home prices, the deficiency in new home production is keeping home values high.

New California ADU Laws

In an effort to address a lack of housing and affordability, the State of California has aggressively adopted programs to promote the construction of Accessory Dwelling Units (ADUs.) The most interesting aspect of these new laws is how they usurp local county and city laws. The state law even demand that Homeowner Associations (HOAs) abide by these new rules.

SB 1069 (Wieckowski), AB 2299 (Bloom), and AB 2406 (Thurmond) – made the creation of ADUs easier. One of the most important aspects of these laws were to eliminate the requirement for additional parking for ADUs and limiting local government control over them. Legislation passed and became law as of January 1, 2020. These laws include Assembly Bill 881, Assembly Bill AB 670, Senate Bill 13, and Assembly Bill 68.

This means that homeowners can create granny flats, in-law units, backyard cottages, units above the garage and even convert portions of their home into a Junior ADU, called JADU. Initially, ADU legislation required owner occupancy, but this too, has been removed to help landlords and investors.

Increasing Affordable Housing

The bottom line is that these new units will provide housing affordability at a cost that should be a fraction of renting a single family resident. Not only will they provide additional income for homeowners with less regulations to block them, they provide renters with affordable options.

In fact, California is so committed to this project that are even offering grants. The CalHFA ADU Grant Program provides up to $40,000 in assistance to reimburse homeowners for predevelopment costs necessary to build and occupy an ADU.

While many of the HOAs around Lake Tahoe had ordinances that prevented these types of structures, virtually all associations have re-written their guidelines to accommodate this new state legislation. They really have no choice, but to abide.

However, HOAs can still implement architectural guidelines and review, as well as regulations that ensure any extra pollution or nuisances are controlled. They do this through a permitting process. For example, see Tahoe Donner ADU Regulations.

TRPA too, allows for one attached and one detached ADU. However, plans must abide by coverage allocations. Click here for more information about TRPA and ADUs.

California Health and Safety Code (HSC), Section 65583(c)(7), requires that cities and counties develop a plan that incentivizes and promotes the creation of ADUs. It is important to note that the local building permits will still be required.

Contact me today for a list of available properties that would be great for adding an ADU. While short-term rentals have become more restrictive, you can still offset your costs to own a vacation home by renting a long term ADU.

Market Reports • December 13, 2022

Activity January through October 2022

by Ethan Pontz

Coldwell Banker

2022 Real Estate Market Report

North Lake Tahoe -Truckee

Residential Properties – Single Family Homes and Condominiums

Activity January through October 2022

Residential Sales Summary 2022

Total Residential Sales:

As you have likely heard, the real estate market has slowed significantly the last few months. Monthly sales numbers, measured in number of transactions, have fallen well behind historical averages. In October, there were 82 residential sales which is the lowest number of October sales in the last 10 years and just 56% of the 10 year average for the month (156 sales). Even if you remove the outlier COVID boom years, it’s still just 69% of the 10 year average for October transactions.

Despite the strong start to the year, year to date numbers are also starting to lag behind. 1,011 residences have sold from January through October which is the 2^nd lowest for that period in the last 10 years (just beating the 1,008 sales in 2014). That is 78% of the 5 year average for the period and 83% of the 10 year average.

Despite the low number of transactions, homes that do sell are selling in a reasonable amount of time. The median number of days on market for homes sold in October was 34 (in line with pre-pandemic benchmarks).

Median and Average Sales Prices: Sales prices have fallen off from highs. No 2 homes, nor locations, are alike in this area, so it’s always hard to tell how far prices have moved. But, 10-15% from the peak pricing (in Q1 2022) is a reasonable estimate. That said, rest assured that prices are still at a very healthy premium from where they stood in 2019. For the month of October the average residential sales price was $1.708 million and the median was at $1.067m (both numbers have been bouncing around month to month this year). For the first 10 months of the year, the average sales price was $1.684 million and the median was $1.15 million.

For single family homes the YTD average is at $1.898 million (up from $1.768 in the first half of 2021) with a median of $1.250 million (up from $1.2 million in the first half of 2021). The month of October came in at an average of $1.898 million and a median of $1.25 million. Comparing those numbers to 2019 (the last “normal” year prior to covid) is incredible. For the first half of 2019 the average single family home sale was $1.233 million and the median was at $755,000.

Active Residential Inventory:

Active Listings:

We are moving into winter and inventory is coming down as it typically does at this time of year. For most of summer, the inventory of residences for sale had been buoying between 345 and 360. It has dipped down to 250 in mid November. Last year, at this time, there were about 150 residences actively for sale. However, in November 2019, the inventory was closer to 500. Looking at long term numbers, inventory is still at the lowest levels we have seen historically prior to COVID (Around 60% of the average for the 5 years prior to COVID and 40% of the 10 year average) for this time of year.

The 94 new listings in October is the lowest October total in 10 years and just 69% of the 5 year average and 76% of the 10 year average for number for the month. For 18 consecutive months the number of new listings for that month has been below the 5 and 10 year averages. In each of those 18 months the number of new listings has been among the 3 lowest totals for that month in the last 10 years.

Current Pending Sales: The number of pending sales is at 73 (down from 90 last month). About 75 residences went into contract in October (down from 95 in September).

Current inventory represents a little over 3.3 months of supply relative to October activity. Historically any number below 5 months of supply is considered a seller’s market. But, this is a much more balanced market than what we saw the last 2 years, when months of inventory consistently hovered around 1.

Sales Under $500,000: Through October, there were 60 residential sales under $500k, representing 6% of total sales. In the same period in 2021, 9% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999: Year to date, 365 residences sold between $500,000 and $999,999, representing 36% of total sales. For the same period in 2021, 42% of sales were in this price range.

High End Home Sales $1,000,000 to $1,999,999: For the period, 382 residences have sold between $1m – $2m, representing 38% of total sales. For the same period in 2021, homes sold in this price range represented 33% of total sales.

Luxury Home Sales Over $2 Million: 204 residences have sold over $2 million, representing 20% of sales. This includes 44 sales over $5 million, of which 13 are over $10 million, and 2 over $20 million. For the same period in 2021, 221 homes sold over $2 million, representing 16% of sales.

What’s Going On Looking Forward?

The extremely strong “covid boom” real estate market is in the rearview mirror and, like a light switch, we have turned to well below average activity in the second half of the year.

What lies ahead the rest of the year?

Low inventory will continue to be a big force on the supply side of the market. While inventory is nearly double what it was last year at this time, it is still only half of what we typically saw at this time of year in the pre-COVID benchmark years.

There are also significant questions about how strong demand will be through the end of the year. There are major variables like inflation, interest rates, stock market volatility, recession, the Russia-Ukraine War, short term rental regulations (call if you have questions!) that are adversely impacting demand.

For the last month multiple offers on properties has become uncommon and bidding wars (5+ offers) have almost gone away. Price reductions are commonplace (about 10% of listings seem to reduce their price each week), and many seller’s are withdrawing or cancelling their listings as we head into winter.

We expect below “normal” (by pre COVID standards) activity, measured by number of transactions, through the end of the year and into Q1 2023. Beyond that is more uncertain.

Buyers, keep in mind, this is the most balanced market we have seen in the last 2.5 years. You now have the following things working in your favor:

The ability to negotiate price is back!
The ability to inspect a property and have normal contingencies is back!
The ability to negotiate repairs is back!
Yes, interest rates are climbing, but if they continue to climb you will be glad you locked in now. If/when they do reverse course, you can refinance to take advantage!

Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data’s accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 01908304

Real Estate News • December 13, 2022

Real Estate News Lake Tahoe | Truckee

by Ethan Pontz

pine cone on stump

Market News

It is an interesting time in the Lake Tahoe and Truckee real estate market. With interest rates continuing to fall and home values holding steady, both buyers and sellers will benefit.

Over the last 30 days, the median price of sold homes in Truckee was at $762,200. The median price for new listings is currently at $1.2 million. The sale to list price is at 92%, lower than the 97% of the Spring and Summer of 2022. This means that most transactions have required sellers to adjust their prices down to close the sale.

However, list prices may have been set from comps tracking to the earlier part of the year. Homes that are well priced are still selling rather quickly. The demand for a limited supply of mountain homes in Lake Tahoe and Truckee still remains strong.

Homes take an average of 103 days to sell in Truckee, which is much higher than the 30 days of 2021 and beginning of 2022. Sellers will need to be more aggressive in pricing their home and ensuring it is in pristine showing condition. The days of waiving inspections and multiple offers are over.

Inventory

There are currently 94 active listings, with only 16 new homes listed for sale in the last 30 days. 15 homes sold during this same period. The current rate of absorption, which measures supply vs. demand and how quickly homes sell, is at 3 months or 17%.

Since a seller’s market is generally defined by an absorption rate of 20% or higher, it is clear that we are transitioning into a buyer’s market. However, an absorption rate of 15% and below is the indicator of a buyer’s market. We might call the market balanced.

Over the holidays, we generally see a reduction in available listings. This could change as we move into Spring 2023.

Interest Rates

Over the last month, the average 30-year rate for a home mortgage fell from 7.16% to 6.4%. Lenders are gaining confidence that the FED rate hikes will slow in 2023. On November 17th, rates fell the largest amount in 41 years, from 7% to 6.5%.

The FED is expected to raise the prime rate next week 50 basis points. This is a decrease in the 75 point hikes of the past few months. The FED rate is currently between 3.75 and 4%.

Lenders generally offer rates that are 3% higher than the FED rate. However, the market for buying and selling mortgages has been in a slump and mortgage companies are becoming more competitive. This presents would-be buyers a great opportunity and mortgage applications rose in November.

During the first week of December, mortgage rates dropped to 6.41%. According to Bloomberg, rates have dropped for the fourth consecutive week. This is the longest stretch since 2019.

Home Values

Because inventory is still relatively low, home values in Truckee have remained stable. Although the amount of closed transactions fell during October and November compared to last year, the median price was actually higher year over year.

The current market presents an unusual opportunity for both buyers and sellers. While interest rates are down from their 7% highs, buyers can save by locking in a rate at 6.5%.

Additionally, since home values are holding steady and inventory is down, sellers too, have an opportunity. They can sell their home at a higher price while demand remains for the limited supply of mountain homes in Truckee.

Both CAR and NAR are forecasting a downward trend in home values for 2023. The California median home price is forecast to drop 8.8% to $758,600 in 2023, following a projected 5.7% increase to $831,460 in 2022. Of course, values in Truckee and Lake Tahoe match more to the Bay Area and are higher than other parts of California.

Contact me today for more information about the local market conditions in each area of Lake Tahoe and Truckee.

Winter Tips • November 26, 2022

Winter Weather Driving Tips

by Ethan Pontz

tires in snow with chains

There is nothing like escaping the city to enjoy the outdoor recreation of Lake Tahoe and Truckee. During winter however, it is not uncommon to experience road closures and delays. Driving on ice and snow can also present challenges unfamiliar to city drivers.

These tips will ensure you are prepared and enjoy a safe ride on snow-covered mountain roads:

DRIVING

Highway 80 will have chain control check points when a snowstorm hits Donner Summit. If you have a four-wheel or all-wheel drive vehicle, you will not need chains. However, don’t assume that AWD or chains will make the road less icy. You still need to drive with caution.

Don’t be in a hurry – slow down. You will find that it is harder to control and stop your vehicle on a slick or snow-covered surface. You will need to increase the distance between you and the vehicle in front of you to prepare for the extra time needed to stop on icy roads.

Be deliberate, gentle and gradual with the steering wheel and brakes. If you do feel the car skidding on a wet surface, never stab the brakes, but pump them gently. Release the accelerator rather than braking when possible. If the rear of the vehicle slides in one direction, turn the steering wheel in the same direction until the tires regain traction.

On Donner Summit, there will be many snow plows so give them plenty of space. It is dangerous to attempt to pass them and you will have a safer time driving on roads that have been plowed. They may stop or make wide turns, so give them plenty of space. If you do choose to pass a snow plow, do so with extreme caution.

CAR SEATS

While you may typically dress your children in winter coats for the ride, heavy coats may interfere with the proper harness of a child’s car seat. It is better to dress them in warm layers and place a blanket or coat around the child once they are harnessed in the seat.

WINDSHIELD WIPERS

CAL TRANS typically uses a dirt and saline mixture on the mountain roads. Along with clearing the snow, it may be dirty snow. You will find that you will go through a lot of windshield wiper fluid, so make sure your reservoir is full. You may also want to use a high quality, winter fluid that includes a de-icer.

Make sure your windshield wipers are in good working order. Visibility will be limited by falling snow, but worn out wiper blades will make visibility impossible. Next to tires, your windshield wipers are an important part of driving in snow.

Additionally, when travelling while snow is falling, ice and snow will build up on your windshield. Ensure your defroster is working properly. If you wait until the ice has built up to turn on the defroster, you will have a more difficult time clearing ice from the windshield. Have the defroster on continuously while driving in the snow.

STOCK YOUR VEHICLE

Whenever traveling over Donner Summit, prepare for long delays. Highway 80 can close for hours with no access to any off ramp. If you are stopped in your car for a long period of time, you will want to have supplies with you that include:

snow shovel, ice scraper and broom
bag of sand or kitty litter
jumper cables, flashlight and warning sign or flashers
blankets, gloves and boots
cell phone charger
water, food and medicine

Because you may be running the car to keep it warm for long periods, make sure to gas up prior to ascending the summit. There are gas stations in Colfax and Applegate, so even if you filled up in the Bay Area or Sacramento, you may want to ensure your tank is full.

In the event that you are stopped on the freeway, stay warm and inside your vehicle. Ensure that your running vehicle has plenty of clearance for exhaust to avoid carbon monoxide poisoning. Remove any snow that may be gathering around the exhaust pipe.

CAL TRANS and CHP are great at getting the roads cleared quickly, so be patient. Road closures typically last only an hour or less to allow for plowing or to remove a vehicle that has spun out ahead of you. Taking it slow will ensure that it is not your vehicle that spins out.

Contact me today to learn more about Lake Tahoe and Truckee mountain life. I’d love to help you find your dream home or can provide a free home evaluation.

Market Reports • November 7, 2022

Truckee & Lake Tahoe 3rd Quarter Market Stats 2022

by Ethan Pontz

Coldwell Banker

2022 Real Estate Market Report

North Lake Tahoe -Truckee

Residential Properties – Single Family Homes and Condominiums

Activity January through September 2022

Residential Sales Summary 2022

Total Residential Sales:

As you have likely heard, the real estate market has slowed significantly. Monthly sales numbers, measured in number of transactions, have fallen well behind historical averages. In September, there were 126 residential sales which is the 2^nd lowest number of September sales in the last 10 years (125 in 2014), and just 76% of the 10 year September average (165 sales). Even if you remove the outlier COVID boom years, it’s still just 83% of the 10 year average for September transactions. Q3 also saw the 2^nd lowest number of sales in the last 10 years, coming in at 75% of the 10 year average (and 84% of the non COVID 10 year avg). However, thanks to the strong start to the year, we are not too far off YTD averages. If you remove the 2 COVID year outliers (January – August 2020 and 2021 were both over 1,120 closed transactions) we are at 97% of the “non covid year” average. Still, the 929 closed transactions YTD is the 3rd lowest number of YTD transactions in the 10 year period.

Homes that sold continued to sell quickly through September. The median days on market for closed sales was 24, which is up from 12 in July, but still well below historical averages. That said, the number will continue to increase and we expect it to approach the pre-COVID median which was in the low 30s.

Median and Average Sales Prices: Sales prices have fallen off from highs. No 2 homes, nor locations, are alike in this area, so it’s always hard to tell how far prices have moved. But, rest assured that prices are still at a very healthy premium from where they stood in 2019. For the month of September the average residential sales price was $1.336 million and the median was at $1.1m (both numbers have been bouncing around month to month this year). For the first 9 months of the year, the average sales price was $1.682 million and the median was $1.15 million.

For single family homes the YTD average is at $1.898 million (up from $1.768 in the first half of 2021) with a median of $1.250 million (up from $1.2 million in the first half of 2021). The month of September came in at an average of $1.373 million and a median of $1.155 million. Comparing those numbers to 2019 (the last “normal” year prior to covid) is incredible. For the first half of 2019 the average single family home sale was $1.233 million and the median was at $755,000.

Active Residential Inventory:

Active Listings:

Summer is in the rear view mirror and inventory is coming down as it typically does in the fall. From 4^th of July weekend through Labor Day, the inventory of residences for sale had been buoying between 345 and 360, but has dipped down to 295 in mid October. Last year, at this time, there were about 200 residences actively for sale. However, in September 2019, the inventory was closer to 600. Looking at long term numbers, inventory is still at the lowest levels we have seen historically prior to COVID (Around 60% of the average for the 5 years prior to COVID and 40% of the 10 year average) for this time of year.

The 112 new listings in September is the lowest September total in 10 years and just 67% of the 5 year average and 74% of the 10 year average for number of new listings. For 17 consecutive months the number of new listings for that month has been below the 5 and 10 year averages. In each of those 17 months the number of new listings has been among the 3 lowest totals for that month in the last 10 years.

Current Pending Sales: The number of pending sales is at 90 (down from 132 last month). About 95 residences went into contract in September (down from 120 in August).

Current inventory represents a little over 3.1 months of supply relative to September activity. Historically any number below 5 months of supply is considered a seller’s market. But, this is a much more balanced market than what we saw the last 2 years, when months of inventory consistently hovered around 1.

Sales Under $500,000: Through 3 quarters, there were 54 residential sales under $500k, representing 6% of total sales. In the same period in 2021, 9% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999: Year to date, 333 residences sold between $500,000 and $999,999, representing 36% of total sales. For the same period in 2021, 42% of sales were in this price range.

High End Home Sales $1,000,000 to $1,999,999: For the period, 355 residences have sold between $1m – $2m, representing 38% of total sales. For the same period in 2021, homes sold in this price range represented 33% of total sales.

Luxury Home Sales Over $2 Million: 187 residences have sold over $2 million, representing 20% of sales. This includes 39 sales over $5 million, of which 12 are over $10 million, and 2 over $20 million. For the same period in 2021, 183 homes sold over $2 million, representing 16% of sales.

What’s Going On Looking Forward?

The extremely strong “covid boom” real estate market is in the rearview mirror and, like a light switch, we have turned to below average activity in Q3. While YTD numbers are hanging in there with pre-covid activity levels, Q3 numbers fell well behind.

What lies ahead the rest of the year?

Low inventory is still a big force on the supply side of the market. There are also significant questions about how strong demand will be through the end of the year. There are major variables like inflation, the stock market, recession, interest rates, the Russia-Ukraine War, short term rental regulations (call if you have questions!) that are adversely impacting demand. We are very interested to see just how big an impact it is. We expect below “normal” (by pre COVID standards) activity, measured by number of transactions, through the end of the year and into Q1 2023. Beyond that is more uncertain.

This is, by far, the most balanced market we have seen in the last 2.5 years. Buyer’s, you now have the following things working in your favor:

The ability to negotiate price is back!
The ability to inspect a property and have normal contingencies is back!
The ability to negotiate repairs is back!
Yes, interest rates are climbing, but if they continue to climb you will be glad you locked in now. If/when they do reverse course, you can refinance to take advantage!

Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.

Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data’s accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 01908304

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