Things to Do Lake Tahoe • November 5, 2022

Lake Tahoe Ski Resort Opening Dates

by Ethan Pontz

snowboard in snow

November 2022 ushered in much needed precipitation in the Sierra Nevada mountains. The recent storm at Lake Tahoe and Truckee left a 6 to 8 inch base at most of the area ski resorts. Another system is in the forecast for mid November.

Enhanced by snow making efforts, many resorts are scheduled to open in mid November.

Lake Tahoe Ski Resort Opening Dates

Boreal Mountain Resort November 11th, 2022

Northstar California November 12, 2022

Palisades Tahoe November 18, 2022

Soda Springs November 25, 2022

Sugar Bowl Resort November 25, 2022

Tahoe Donner December 09, 2022

Homewood Mountain Resort December 16, 2022

Sierra-at-Tahoe December 25, 2022

Donner Ski Ranch February 01, 2023

New Palisades Tahoe Gondola

map of palisades alpine gondola

Along with a new base-to-base gondola that will connect Palisades Tahoe and Alpine Meadows, skiers will find other upgrades at both resorts. The 2022/2023 ski season will open with a new Red Dog lift, expansion of the Funitel Plaza and a much needed renovation to the Alpine Meadows base area.

The new gondola will provide a 16 minute ride through the mountains that connect the two resorts. It will have the capacity to transport 1400 people per hour in 8 passenger cabins. This new gondola will replace the need to board the shuttles or drive between the two resorts.

Because the terrain between Alpine Meadows and Palisades Tahoe is not contiguous, the new gondola will not create any additional ski areas. Skiers and riders will be able to use the gondola to travel between the two mountains. The ride through the mountains promises to be spectacular.

The gondola will transport guests between The Village at Palisades Tahoe and the Alpine Lodge. Guests will also have the option to disembark at the KT-22 mid station. There will be no onload/offload access for Palisades Tahoe guests at the Alpine Mid-Station. Of the 4 terminals, you can disembark on 3 of them to ski/snowboard.

Other Upgrades

The Red Dog lift will have a new alignment of the bottom terminal and boast a new, high-speed 6-seater lift. They have also expanded the Funitel Plaza to make the area more accessible.

One of the nicest features of the 2022/2023 upgrades is the change to the Alpine Meadows Lodge. To improve the flow of traffic, guests will now ascend a short flight of stairs at the end of the breezeway and walk directly out onto an expanded sun deck on the main level of the lodge.

Rather than walking up the steep hill of snow to reach the lifts, skiers and riders can now step off the sun deck and walk straight across the snow beach to the Roundhouse and Summit lifts, or easily push over on skis to Treeline Cirque. Read more about the upgrades here.

The third consecutive La Nina winter appears to be kicking of an early ski season. Last year, Palisades Tahoe was open for Halloween skiing and closed again as the weather changed. With the forecast for additional precipitation for Northern California through mid November, we are hoping this trend will continue into the rest of the ski season.

Contact me today for information on available homes for sale in Truckee and North Lake Tahoe. I can also provide a free property analysis of your home.

Things to Do Lake Tahoe • October 27, 2022

Hiking Paige Meadows

by Ethan Pontz

Whether spring, summer, fall or winter, beautiful Paige Meadows boasts the area’s best wildflower hikes, bike trails and cross-country skiing. During autumn, the aspen trees that surround the 1.4 mile circular loop, display a beautiful red, yellow and shimmering gold.

Paige Meadows consists of five interconnected trails. Each offers incredible mountain and meadow views, with access to the backside of Alpine Meadows. From Ward Canyon, the trail ascends into an open meadow. You will find small lakes during spring, and perfect snow conditions for cross-country skiing in winter.

The main trail makes a large loop around Paige Meadows with several interconnecting trails that meander through the forest. Each leads back to the main trail. One can hike the entire loop in a little over an hour and it is considered a moderate hiking or biking trail.

Access to Paige Meadows

From Highway 89 on the west shore, the trail can be accessed via the Ward Creek Tahoe Rim Trail on Ward Creek Boulevard. You can also turn onto Pine Avenue above Sunnyside and follow Tahoe Park Heights Drive up to Silver Tip Drive in Talmont Estates. There is a parking area at the end of Silver Tip Drive.

For a longer hike, follow the Tahoe Rim Trail from Tahoe City, which intersects with the Paige Meadows trails to the north and west. This is a more challenging hike and increases the loop to 5.1 miles.

Paige Meadows History

You will find many groves of aspen trees on the very west of the large loop. Look for the carvings on the trees that date back to when the Basque immigrants lived in this area.

During the 1890’s, many of the Basque sheepherders came here from Spain and France. They would bring their sheep into the Tahoe National Forest during summer. At the west end of the meadow, you can still find one of their hand-built, traditional brick ovens.

They baked bread in these ovens and the one in Paige Meadows is so well-built that it looks like it could still be used today.

Summer Wildflowers

During summer, the meadow is best known for amazing wild-flower hikes. You will find wild columbine, lupine and even wild and white lilies. Sage, paint brush, wild daisies, mule’s ears, yarrow and wild daffodil are other flowers that bring amazing color to the grassy meadow and forests.

At the very west portion of the loop, you can cross a babbling stream and find trails up into the Alpine Meadows back country, behind the Scott Chair. On the other side of Ward Creek Boulevard, there are trails up to Ward Peak and amazing views of Twin Peaks.

There are many trails within Paige Meadows and the surrounding areas. One can even access the Pacific Crest Trail from a hike that leads out of the Shirley Chair in the Alpine Peaks neighborhood.

The neighborhoods of Talmont Estates and Alpine Peaks are popular because of their ease of access to Paige Meadows. Contact me today for more information about available homes in Lake Tahoe and Truckee.

Home Sellers • October 27, 2022

REALVITALIZE

by Ethan Pontz

SELL YOUR HOME FASTER, FOR A BETTER PRICE.

The RealVitalize® program lets you make the needed improvements and repairs to prep your home for sale. We pay the up-front costs and you don’t pay us back until closing, with no hidden fees, charges or markups. Most homes using the RealVitalize program sell at or above list price*.

Use the RealVitalize program to help with:

• Painting • Staging • Room Renovations • Flooring and Carpentry • Cleaning and Handyman Services • Moving and Storage • Electrical and Plumbing • Landscaping and Curb Appeal Structural work is not included.

“The seller wasn’t able to get above $1.7M when his home was
previously listed. …We decided to use the RealVitalize program to
restore his home. …With no out-of-pocket money, we made a budget
and plan, cleaned, painted, installed new flooring, updated bathrooms,
added gravel and staged it. …We received multiple offers and
were under contract in five days, and sold over asking price for
$2.2M – $500K more than previously listed!”
– Kat B., Topanga Canyon, CA

Let’s Do the Work to Get it Sold

New kitchen. Room renovations. Beautiful landscaping. The RealVitalize® program helps you make the updates and upgrades to prep your home for sale. Let’s get started. Learn More

Ready to sell your home?

DETERMINING YOUR REALVITALIZE BUDGET:

The maximum budget for a RealVitalize project is equal to the list-side commission rate of the home’s list price—though it’s worth noting that no matter how expensive the home, or how high the commission, the RealVitalize project cannot exceed the program maximum budget set by your brokerage.
If the seller wishes to have additional work completed above the maximum approved budget, they can pay for the services directly to Angi once the work is complete. Alternatively, you can negotiate a higher listing-side commission to increase their budget.
There is no minimum cost for projects—RealVitalize can be used for anything from a small paint project to a cleaning to get the home ready for viewing.

*Based on program data from June 1, 2020 to May 31, 2021. Not a controlled study; correlation does not equal causation. Results not guaranteed and past performance does not guarantee future results. Execution of a program agreement is required. RealVitalize is not available in all states and available only at participating offices. Void where prohibited by law. Additional terms and conditions apply. Results not guaranteed. If listing doesn’t sell within 12 months from the first project completion, seller must pay back the full amount of covered services. All property enhancement services are provided by the applicable service providers affiliated with Angi. Neither the Coldwell Banker System nor any of its respective franchisees or affiliated companies is providing any property enhancement product or service in connection with the RealVitalize program. Not intended as a solicitation if your property is already listed by another broker. Affiliated real estate agents are independent contractor sales associates, not employees. ©2021 Coldwell Banker. All Rights Reserved. The RealVitalize logo and service mark are owned by Realogy Group LLC. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. 21P3BL_NAT_8/21

Home Buyers • October 13, 2022

Why Buying a Home Today Makes Sense

by Ethan Pontz

house with keys

When considering whether it is the right time to purchase a home, there are many factors beyond the interest rate that will determine the overall price.

Interest rates came down slightly at the beginning of October to 6.83% after moving to over 7% at the end of September. During the second week of October, rates rose again above 7%. This was due to the Federal Reserve increasing the rate three-quarters of a percentage point. Lenders are preparing for another rate hike at the beginning of November.

The FED began increasing its benchmark interest rate in March as a way to reduce inflation. This has led to higher borrowing costs for homebuyers. In 2020, interest rates were reduced to historically low levels because of the pandemic. Many buyers are comparing today’s rates to the rates two years ago, which is really not realistic.

To keep rates in perspective, the chart below shows that since 1971, interest rates have averaged 7.78%.

interest rate chart 50 years

Interest Rates and Sales Price

It is true that a $300,000 mortgage with a 2% difference in the interest rate will increase the monthly payment a few hundred dollars. For example, at 3.5%, the payment would be $1,347 vs $1,703 at an interest rate of 5.5%.

What is happening in the real world however, is that as many buyers back away from buying a home because of rising interest rates, home prices have begun to adjust down. Even at a higher interest rate, the overall cost of a home can actually be reduced by a lower purchase price.

Many buyers are considering an adjustable-rate loan to obtain a lower mortgage rate for five or seven years. Zillow reported that 12% of mortgage loans in June and July were for adjustable-rate loans.

These types of loans can be risky because the monthly payment can increase depending on where mortgage rates are after the initial term. A borrower who locks in a fixed rate loan at a higher interest rate today, can always refinance if interest rates come back down.

Why Buying a Home Today Makes Sense

As the real estate market continues to fluctuate, many would-be homebuyers have sat on the sidelines waiting for a lower rate. Those who have chosen to move forward have been rewarded by a lower purchase price.

Those who are waiting – are still waiting.

Even if interest rates were to adjust down, the current buyer’s market could quickly revert back to a seller’s market as pent-up buyer demand floods the market. Home prices could rise again.

Many sellers are now offering to pay for a 2-1 buydown on the rate. Buyers can enjoy a 2% lower rate the first year and a 1% lower rate the second year, before locking into the prevailing rate. If after 2 years, interest rates do indeed come down, they can refinance.

While your borrowing costs may be higher, the purchase price of an available home can be lower. There are also strategies for sellers that can help them hold to their asking price. If you are thinking of buying or selling your home at Lake Tahoe or Truckee, contact me today to discuss the best strategy.

Home Buyers • Home Sellers • Market Reports • Real Estate News • September 29, 2022

Truckee & Lake Tahoe August 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 August 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 August, there were 125 residential sales which is the 2^nd lowest number of August sales in the last 10 years, and just 76% of the 10 year August average (165 sales). 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 96% of the “non covid year” average. The 801 closed transactions YTD is the 3rd lowest number of YTD transactions in the 10 year period.

Homes that sold continued to sell quickly through August. The median days on market for closed sales was 18, 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 August the average residential sales price was $1.342 million and the median was at $955k (both numbers have been bouncing around month to month this year). For the first 8 months of the year, the average sales price was $1.681 million and the median was $1.15 million.

For single family homes the YTD average is at $1.918 million (up from $1.768 in the first half of 2021) with a median of $1.257 million (up from $1.2 million in the first half of 2021). The month of August came in at an average of $1.473 million and a median of $1.0 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 winding down on the summer season when we typically see the highest level of inventory on the market. Since the 4^th of July weekend, the inventory of residences for sale had been buoying between 345 and 360, but has dipped down to 326 in mid September. Last year, at this time, there were about 180 residences actively for sale. However, in September 2019, the inventory was closer to 650. 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 163 new listings in August is just 76% of the 5 year average and 83% of the 10 year average for number of new listings. For 16 consecutive months the number of new listings for that month has been below the 5 and 10 year averages. In each of those 16 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 132 (down from 140 last month). About 120 residences went into contract in August (down from 125 in July).

Current inventory represents a little over 2.7 months of supply relative to August 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 august, there were 50 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, 284 residences sold between $500,000 and $999,999, representing 35% 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, 301 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: 166 residences have sold over $2 million, representing 21% of sales. This includes 36 sales over $5 million, of which 11 are over $10 million, and 1 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 real estate market is definitely evolving rapidly. The extremely strong “covid” activity is in the rearview mirror and, statistically, things are trending to a more “normal” level of activity. If you compare activity YTD to 2021, it gives the appearance that things are quite slow. However, if you eliminate the COVID bump and compare only to years 2019 and earlier, it gives the appearance that things are fairly normal, but slowing as we head toward Q4.

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!), and mother nature (fires, smoke, snow, etc), 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. Beyond that is more uncertain.

For the last month multiple offers on properties has become less common and bidding wars (5+ offers) have almost gone away. Price reductions are commonplace (about 10% of listings have reduced their price each week for the last 3 weeks), and we anticipate many seller’s withdrawing or cancelling their listings as we head into fall and winter. My hunch is the slowing demand will be matched by limited supply, making for a quiet winter.

Sellers are still in the driver’s seat but buyers have some real leverage for the first time in 2 years. Buyer’s, you now have the following things working in your favor:

The ability to negotiate price is coming back!
The ability to inspect a property and have normal contingencies is coming back!
The ability to negotiate repairs is coming 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

Real Estate News • September 28, 2022

Negotiating a Win/Win for Buyers and Sellers

by Ethan Pontz

shaking hands win win

Mortgage companies are getting creative to help buyers with affordability, while allowing sellers to avoid price reductions. Here’s how it works:

Buyers have been challenged by rising interest rates and home prices. A one percent rise in an interest rate can increase the monthly payment beyond what a buyer can afford.

As buyers remain on the sidelines, wondering where interest rates will settle, sellers are facing shrinking demand and are forced to accept a lower offer on the sale of their home.

Typically, a buyer will pay closing costs and fees to obtain a mortgage. These costs can range between 3% – 6% of the sales price. Today, many sellers are more willing to pay for these upfront fees, which is called seller concessions.

This can be a win/win for both the buyer and seller. In return for paying some of the upfront costs on the buyer’s loan and closing, a seller can retain a higher sales price.

Possible Costs Paid by Seller

Title Insurance: Normally this is paid by the buyer as protection on any claims against the title.

Inspections: Lenders require some inspections that are normally paid by the buyer.

Property taxes: A seller can pre-pay property taxes through the end of the year.

Loan Origination Fees: This is the fee the lender charges the buyer to process the loan.

Appraisal: Lenders require a fee to cover having a licensed appraiser estimate the home’s value.

Points: Lenders allow buyers to pay upfront interest to reduce the overall interest rate.

Source: Angie Loukos with Academy Mortgage

When the seller pays for any of the above costs, the amount a buyer needs to cover the purchase is greatly reduced. When a seller offers to pay points to reduce the buyer’s interest rate, this can make a difference in whether the buyer can afford the monthly payment.

The sales price no longer needs to be reduced and everybody gets exactly what they need.

Contact me today to learn more about these exciting mortgage programs. Whether you are buying or selling your home, I can negotiate the transaction as a win/win for both buyers and sellers.

Things to Do Lake Tahoe • September 26, 2022

Exceptional Truckee Mountain Biking

by Ethan Pontz

Giant Reign Full Suspension MTB From Local Shop Start Haus. Click picture for their full inventory.

Jackass Trail is now called Donkey Town Trail, perhaps to clean up the language. Nonetheless, it’s still a fun flowy trail to quickly send it fast on the downhill. Once a not so well-known trail, coveted by local mountain biking enthusiasts, the Truckee Ranger District and Truckee Trails Foundation have adopted this trail as a legal Forest Service system trail.

While there are many trails surrounding Truckee, what makes Donkey Town so popular is that it allows you to hone your jumping and downhill skills on a short track that allows for a few loops.

Offers Both Ascent and Descent

This single-track mountain biking trail extends 2.3 miles and is considered moderate with a climb of 172 foot and an exciting 475 foot descent. This fast and flowy trail is perfect for bikes designed for downhill, but all sorts of mountain bikers ride it. Many users report that completing it is so fast, they opt in for more than just one lap.

While the trail can be ridden in both directions, it is predominantly designed for the West to East direction for the downhill run. Riding in the other direction would be a lung burner, not to mention it is a single track and traffic would be coming from the other direction.

Good Mix of Terrain

Note to self…Send hard!

You can expect a bit of everything on this ride, from berms, jumps, to rocky tech sections, to fast straightaways. It also has the perfect options to turn your ride into a loop.

The lower section that parallels the highway allows you to ride the trail back to your car rather than biking on the hwy.

You’ll find a good mix of uphill with a fantastic downhill run. Below is the El Burro Trail loop. The Donkey Town Trail has become extremely popular in the last 2 years, so you might want to hit it when the crowds have left Lake Tahoe.

Because it is not overly strenuous, it attracts many riders from the Truckee area, whether vacationers or full-time residents. It is rated blue and offers easy access. It also a great trail to get on your game of jumping gaps and it is relatively short, so you can get a few downhill runs in one day.

Obviously, the views and chance to get deeper into the Tahoe backcountry is always a plus!

Directions to Trailhead

Click the picture to learn more about the Truckee Dirt Foundation

You will travel one quarter mile south of Truckee on Hwy 89. The bottom of the trail is located just off the highway. You may park off Hwy 89 or up the Forest Service road 01 to begin your climb. It’s a steady climb on the Forest Service road , and can take 30-45min, but is well worth it. Look for a huge tree in the center of the forest service road at the top. You will see a few different trails. Take the one on the right. That’s the start of the trail. You will still have a climb to get to the very top which peaks out at 6,437′. Once at the top, enjoy the downhill that you worked so hard for!

There are many amazing trails around the Lake Tahoe and Truckee area. This is a major reason so many buyers are choosing to move to the area. If you would like more information about available homes for sale, or a free property analysis of your home – contact me today!

Home Buyers • Real Estate News • September 7, 2022

Short Term Rental Ordinances | Lake Tahoe and Truckee

by Ethan Pontz

The shortage of available inventory for sale in Lake Tahoe and Truckee drove an increase in home values upwards of 24% since 2019. Additionally, the pandemic led many second homeowners to relocate from the Bay Area to live in Lake Tahoe and Truckee.

This migration has created a shortage of rentals for the local work-force. While home values have escalated, wages have not. This has made it almost impossible for locals to purchase a home in the Lake Tahoe basin.

To address this issue, both Placer County and the town of Truckee implemented short-term rental ordinances. The North Shore of Lake Tahoe is in Placer County, while Truckee is incorporated as its own town and located in Nevada City. The ordinances are slightly different between the two areas.

A short-term rental is a residential unit that is rented for 30 days or less, typically referred to as a vacation rental. Commercial lodging, such as hotels, motels, condo-hotels and timeshares are exempted from these ordinances. Permits are required when renting your property as a short-term vacation rental.

In addition to addressing the housing shortage, these ordinances also seek to preserve the community’s unique character and to prevent the nuisances that can come from the constant turnover of vacation renters. They have implemented new regulations for noise, trash, parking, and occupancy limits, with increased penalties and phone numbers to report any nuisance. All short-term rentals also need to comply with building and fire codes.

At the beginning of 2022, both Placer County and Truckee implemented these ordinances, which are currently in effect. Effective March 31, 2022, the total number of short-term vacation rentals in Placer County is now capped at 3,900 units. For the town of Truckee, the cap is currently at 1,255 units and applications are now on wait-list status.

Truckee Short Term Rental Ordinance

In Truckee, there is also a one year waiting period after any new home purchase, prior to seeking a short-term rental permit. Additionally, no new certificates will be issued for Accessory Dwelling Units (ADU) such as granny flats and guest houses, and multi-family units such as apartments and multi-family dwelling units.

Truckee requires a $100 non-refundable deposit due at the time of application submission. The application will be reviewed and they will notify the applicant of approval and waitlist status via email. Once the application is approved, there is no need to re-apply each year. A certificate will be issued when a spot opens up. The $100 deposit will be applied toward your registration fee.

Placer Short Term Rental Ordinance

In Placer County, existing STR permits in good standing can be renewed prior to the expiration date of the permit, and they are given first priority. Beginning with the 2023 permit cycle, if a property owner or agent fails to submit an application for renewal prior to the expiration date of the permit, the application will be treated as a new permit and processed on a first come first serve basis.

In an effort to bring all existing STR units under this new permitting process, Placer County also created a grace period to allow for this compliance. All new STR permit applications will be issued on a first come, first serve basis. Any change in ownership will automatically terminate the prior STR permit. The new homeowner will need to apply for a new STR permit.

As of this writing, there are openings in Placer County to obtain a STR permit. Contact me today for more information. These permits are not expected to last!

Ski/Summer leases

This is a great option to avoid any permits and the 13.25% transient occupancy tax (TOT). These types of leases come with less wear and tear to your home which creates less maintenance cost and cleaning fees. Monthly rents are typically higher than your average long term renter and homes come furnish for easy move in for your renters. Contact me today for more

Real Estate News • August 29, 2022

Truckee & Lake Tahoe July 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 July 2022

Residential Sales Summary 2022

Total Residential Sales:

As you have likely heard, the real estate market is evolving. Monthly sales numbers, measured in number of transactions, have fallen well behind historical averages. In July there were 103 residential sales which is just 71% of the July average for the last 10 years (145 sales). Even if you remove the 2 COVID year outliers (the last 2 years July came in at 294 and 192 sales), July 2022 is still at 85% of the average for the previous 10 years (121). Despite the strong start to the year, the YTD numbers are also starting to fall behind. Through July there were 676 residential sales, which is 93% of the 10 year average (but only slightly below the average of 685 if you eliminate the 2 COVID outliers).

Homes that sold continued to sell quickly through July. The median days on market was 12, for homes that sold in July. That said, this number is increasing for closed residential sales in August and we expect it to start approaching 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 July the average residential sales price was $1.735 million and the median was at $1.155 million (both numbers actually up from June but have been bouncing around month to month this year). For the first half of the year, the average sales price was $1.743 million and the median was $1.2 million.

For single family homes the YTD average is at $2.006 million (up from $1.768 in the first half of 2021) with a median of $1.3 million (up from $1.2 million in the first half of 2021). The month of July came in at an average of $1.909 million and a median of $1.225 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 into the summer season when we typically see the highest level of inventory for the year. Since the 4^th of July weekend, the inventory of residences for sale has been buoying between 345 and 360. Last year, at this time, there were about 180 residences actively for sale. However, in August 2019, the inventory was closer to 650. 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 187 new listings in July marks the lowest July total in 10 years. For 15 consecutive months the number of new listings for that month has been below the 5 and 10 year averages. In each of those 15 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 140 (up from 136 last month). About 125 residences went into contract in July (up from 96 in June).

Current inventory represents a little over 2.9 months of supply relative to July activity. Historically any number below 5 months of supply is still 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: For the first half of the year, there were 41 residential sales under $500k, representing 6% of total sales. In the same period in 2021, 10% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999: Year to date, 269 residences sold between $500,000 and $999,999, representing 33% 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, 264 residences have sold between $1m – $2m, representing 39% of total sales. For the same period in 2021, homes sold in this price range represented 32% of total sales.

Luxury Home Sales Over $2 Million: 148 residences have sold over $2 million, representing 22% of sales. This includes 32 sales over $5 million, of which 11 are over $10 million, and 1 over $20 million. For the same period in 2021, 155 homes sold over $2 million, representing 16% of sales.

What’s Going On Looking Forward?

The real estate market is definitely evolving rapidly. It seems that the extreme “covid” activity is in the rearview mirror and, statistically, things are trending to a more “normal” level of activity. If you compare activity YTD to 2021, it gives the appearance that things are quite slow. However, if you eliminate the COVID bump and compare only to years 2019 and earlier, it gives the appearance that things are fairly normal, but slowing.

What lies ahead the rest of the year?

Relatively low inventory is still a big force in the market. However, there are significant questions about how strong demand will be through the 2^nd half of the year. There are major variables like inflation, possible recession, interest rates, the Russia-Ukraine War, short term rental regulations (call if you have questions!), and mother nature (snow, fires, etc), that are going to have an impact on demand. We are very interested to see just how big an impact it is. We expect “normal” (by pre COVID standards) activity, measured by number of transactions, through the 3^rd quarter. Beyond that is more uncertain. For the last month multiple offers on properties has become less common and bidding wars (5+ offers) have almost gone away. Price reductions are commonplace, and we anticipate many seller’s withdrawing or cancelling their listings as we head into fall and winter. My hunch is the slowing demand will be matched by limited supply, making for a quiet winter.

Sellers are still in the driver’s seat but buyers have some real leverage for the first time in 2 years. Buyer’s, you now have the following things working in your favor:

The ability to negotiate price is coming back!
The ability to inspect a property and have normal contingencies is coming back!
The ability to negotiate repairs is coming 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.

Real Estate News • August 24, 2022

Truckee & Lake Tahoe Real Estate Website Launch

by Ethan Pontz

Announcing the launch of our new feature rich real estate website serving the greater Truckee & Lake Tahoe real estate market.

I am happy to announce the launch of my website Truckeetahoemountainhomes.com – your online resource for all Truckee & Lake Tahoe real estate! I always endeavor to provide clients with easy access to up-to-date listings and information impacting the real estate industry. My goal is to enable you make the right decisions about one of your largest investments, whether you are buying or selling a home.

This feature rich website has everything you need to help you in your search for local homes for sale in Truckee & Lake Tahoe. Start your advanced search for Truckee & Lake Tahoe real estate now. Also check out my featured Truckee & Lake Tahoe properties for sale. Have any questions about a listing or real estate in general then contact me by email or call (530) 562-7797.

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As your local real estate expert let me help you with selling your home and getting top dollar. Fill out our free What’s My Home Worth? evaluation form to start the balling rolling.

Have Questions?
Have any questions don’t hesitate to contact me – your Truckee & Lake Tahoe real estate expert.