Home Sellers • August 22, 2022

7 Important Considerations When Pricing Your Home for Sale

by Ethan Pontz

Setting the right price for your home can be an overwhelming undertaking, but it’s so important! Luckily, our wonderful real estate agents can help us compute all of the housing market lingo, data and overall confusion. That being said, it’s still helpful to understand how the process generally works. We’ve arranged these seven important considerations when pricing your home for sale:

1. Seek advice from a real estate expert.
You don’t have to figure this stuff out on your own! Real estate professionals are here to guide you. Trust in the value of their expertise! Your real estate agent can conduct a CMA (Comparable Market Analysis), which will do most of the heavy lifting for you. A CMA is a home evaluation tool that real estate experts use to estimate how much your property is worth. Avoid automated CMA’s on big company websites or price tools like those found on Zillow, both rely on inaccurate data. The only way to get an accurate CMA is through a trusted real estate agent”

2. Examine the prices of currently listed and recently sold “comps.”
It is crucial to study “comparables,” often referred to as “comps,” when pricing a house for sale. Comps are recently sold homes that are similar to the one you are selling in terms of size, age, location and condition. Take a look at homes that have sold within the past year – or more ideally, the past three months – that are comparable to yours and in the same area. Generally, you will not want to deviate far from these figures.

Take the characteristics of the area into consideration, as well. For example, is your listing in a very remote area where you may be hard-pressed to find any decent comps? In this case, it may be necessary to look over a wider area to find properties similar to yours, or you can even consider a different residential area with similar features. In other areas, the value of a home can increase or decrease significantly just by going around the block or “across the tracks.” It’s important to be aware of these details when analyzing comps!

3. Study how comps were listed versus sold.
All homes put on the market are initially priced and listed according to various factors. But the selling price can be higher, if the seller is lucky, or lower. When examining your comps, it’s helpful to look at these ratios to have an idea of market fluctuations, and what sellers may have done right or wrong. Your real estate expert can help you learn these details.

4. Review how long comps were on the market.
Investigate how quickly or slowly comps were sold, or even withdrawn or expired, for valuable pricing feedback. If certain comparables were sold much faster than others, try to find out why.

5. Pay special attention to the square footage of comps.
It’s good to keep in mind that all listings will eventually be appraised. Appraisers aim for accuracy, but even so they can stray more than 10-20% on their gross square footage calculations. With this in mind, it’s best to compare homes with very similar square footage in order to come near the eventual appraised value.

6. Know the market conditions.
Take everything you learn about comps and then analyze the current market conditions the best you can. How is supply and demand currently affecting the sales prices for comps? Typically you’ll want to set your price close to the last few that have sold in your area, but if supply is lower and demand higher, consider raising your listing 10% or so. Ask your Realtor for more tips on how to factor in the current market.

7. Consider starting lower.
When in doubt, shoot low, not high (not too low, of course)! Setting your price under what buyers are ready to pay will get you multiple offers. Prices can be adjusted, of course, but it’s far better to start lower and then raise your price rather than starting too high. Alternatively, shooting a bit lower means that your listing may end up the subject of a buyers’ competition, which means you’ll ideally have offers above your asking price!

Pricing real estate can be a daunting task. Fortunately, the modern world offers a plethora of information to help us get to the right asking price more efficiently. This includes valuable information about comparables, as well as significant steps like the seven aforementioned. Also, remember that your real estate professional can offer valuable assistance in pricing your home.

Home Buyers • August 22, 2022

9 Key Considerations When House Hunting

by Ethan Pontz

Are you looking for a new home? Trying to find the best one can feel like a massive burden. Get an idea of what to look for before you begin the house hunting journey, and you’ll improve your chances of finding the perfect home sooner rather than later! Recognize your lifestyle goals and needs – really know what works for you, what your deal-breakers are, and what you want in a home. You deserve it. Additionally, it is crucial to make sure things in a potential new home are in decent shape. You don’t want to end up with tons of costly repairs and renovations! Continue reading for some important tips to keep in mind while searching for the right home:

1. Get a professional inspection before buying.
A professional inspector will make sure the home is in adequate physical condition. Even if the home looks like it’s in tiptop shape, remember that the house has been spiffed up in order to draw attention to its best features. Or more negatively, a buyer could attempt to distract you from potential issues! A professional inspector is less likely to be duped. If you find a property that could be right for you, it’s highly recommended you inform the seller that a professional inspection is a condition of buying the house.

2. Be wary of damage and issues.
There are red flags that you can easily pick up on before involving an inspector. One of the first and most significant things to notice when viewing a listing is whether or not the place seems well-kept. If some features appear neglected, this could indicate that the seller hasn’t properly maintained the home, resulting in a wide array of potential problems you’ll have to deal with! Pay attention to the scents: are there musky smells? This may indicate water damage or mold. Check if the outside appears well-maintained. Is the grass overgrown? Does the roof appear dilapidated? Does the foundation look uneven? Nonchalantly open and close windows and doors as you walk through. Are the windows poorly installed? Do the doors close properly? Take note if there are leaky faucets, watermarks on the ceilings, if there is enough ventilation, if doorknobs feel wobbly, etc.

3. Is the location satisfactory?
Think about whether or not the home is in close proximity to the places you need regular access to. If not, are you willing to spend more in gas money and extra time driving? Or, is the listing close to public transportation access? Perhaps you’d truly love a home with a sunny backyard, or close to a park or walking trail so that you can easily achieve your daily exercise. If you’d prefer a peaceful and quiet atmosphere, consider how noisy the neighborhood seems. Is there a freeway close by? Also, take notice if the house is next to a body of water. Sure, this probably looks and sounds lovely, but it could also lead to flooding! If you are interested in a particular house, it’s smart to drive-by at different times of the day and night in order to get a well-rounded feel of the area and neighborhood-vibes.

4. Does the site fit your needs and desires?
Observe how the home was designed, the land it sits on and whether or not it will be accessible for you and your family. Are there many stairs? Will it be easy to park all of the vehicles? If you have pets or children (or plan to), will the home be suitable for them? Does the home feel private enough, in terms of things like fencing, the backyard and proximity to your neighbors? Ponder questions like these as you navigate the site and explore the property.

5. Ensure the size of the house is appropriate.
Obviously, consider the amount of people who will be moving into the home with you! Will you need a lot of space? Only view houses that have the right number of bedrooms and bathrooms. A very spacious house can be nice, but beware–more room means more expenses! It’s more costly to keep a larger house warm in the winter, for example. A larger house will also mean more maintenance.

6. Notice the potential for storage space.
When viewing a house, ponder whether or not the home will have enough space for your possessions. Do you have a large wardrobe? How big are the closets? Does the house have a garage or basement? Think of the hobbies and occupations held by those in your household: you may need room for heaps of toys, art supplies, ice skates, surfboards, books, suits, boots, musical instruments, DVDs, etc. It would be a shame to begin moving in, only to realize that you have nowhere to put various things. Some storage space can be added, but it’s still very helpful to consider this!

7. Consider the lighting.
You may desire large and/or many windows that let in sun throughout the day, or you may want to ensure that you have sufficient privacy in certain rooms. In the latter case, notice whether or not neighbors or passersby can easily see inside. Pay attention to where the electrical outlets are placed and imagine where you’d situate your lamps or chandeliers, can you achieve the lighting scheme you’re after?

8. Does the kitchen suffice?
For many, the kitchen is the most important room of the house. For others, not a huge amount of time is spent there. Once again, know what you want and need before embarking on your house-hunting journey. If you or your spouse love to cook, make sure there is enough counter space and room to store kitchen accessories and utensils. Scope out the cabinets – will they have enough room for all of your dishware and spices? Is there a dishwasher? Questions like these can certainly be deal-breakers for many seeking their new home!

9. Do the bathrooms fit your lifestyle?
Are you somebody who enjoys taking baths? It may be worth it to make sure the bathroom (or one of the bathrooms) has a nice tub. If you regularly need to get up early to prepare for work, consider whether or not there is a bathroom to facilitate this without disturbing the rest of your family – perhaps attached to the master bedroom.

Finding the best new home for you and your family can be a daunting mission. There are so many listings out there bursting with charm, you’ll need to prioritize what you truly want and need. Understanding red flags and the advantages of having an inspection are central to staying calm and making the best possible decision you can. As you venture out with the intention of finding the right place to call home, it’ll really help to follow key tips such as those listed above. When in doubt, contact your Realtor for more advice on finding your new dream home.

Home Sellers • August 22, 2022

16 Essential Sellers Tips to Help Sell Your Home Fast

by Ethan Pontz

Are you looking to sell your home? As competitive as the housing market is, taking initiative will serve you extremely well! A great way to get started is to go through your house with the notion that you’re someone else who is looking to buy a new home, who has never been here before. What might you be looking for? What could possibly distract you from appreciating the perks? Could this house feel like home?

There are definitely things you can and should do to impress prospective buyers. Breezing through this list of 16 tips should help tremendously when preparing to sell your home:

1. De-clutter.
Eliminate unnecessary knick-knacks that gets in the way and distracts from your home’s intrinsic features. Anything that doesn’t contribute to the coziness, charm or beauty of the house should be put away prior to showing.

2. Clean!
It’s a good idea to deep clean as much as you possibly can. Wash mirrors and windows, vacuum and dust absolutely everything, remove smudges from walls and appliances… This can be done by yourself of course, or it may be worth it to employ professional cleaners.

3. Depersonalize.
When preparing to sell your home, keep in mind that potential buyers are trying to imagine this space as their own home. Personal items such as family portraits can easily distract from that fantasy, which can therefore weaken your chances of selling.

4. Neutralize.
Consider the overall impressions you get when looking at your décor, walls and furniture. It’s a good idea to tone down hues, styles and patterns in order to keep things more “low key.” This will heighten your chances of pleasing a broader range of prospects. Slip-on covers can be very useful for furniture. It may even be worthwhile to repaint walls to achieve this.

5. Be mindful of smells.
Strong smells are another thing to avoid if you’re trying to sell your home! Do not cook fragrant meals in your home before a showing. Many aromatic foods like bacon, salmon or curry are indeed delicious, but filling your home with these scents will distract and turn off potential buyers. Instead, consider baking a dessert: something sweet and delicious such as cookies will evoke feelings of comfort and happiness. Of course, it’s best to then offer the cookies to people doing walk-throughs!

6. Lighten up.
Open curtains and shades to let natural light pour in, and turn on pretty lamps or light candles to show off the areas that need illuminating. When preparing to sell your home, it’s important to make sure people can adequately see its lovely features!

7. Include plants.
Bring oxygen and natural beauty into your space by placing healthy potted plants, succulents or even a beautiful bouquet of flowers inside!

8. Organize.
Neatly rearrange items in your closet space (and remove unnecessary stuff ). It’s in your best interest to show people how much room there is to store things. Showing any space that seems cramped will turn potential buyers off. Storage space is definitely a valued feature in real estate!

9. Fix ‘er up!
Prospective buyers will notice if things are leaking, seem loose or appear scuffed. It’s important to resolve these little issues when preparing to sell your home.

10. Freshen up outside.
When people come to view your house, they are first going to notice how things appear from the outside. First impressions are huge! Be sure to sweep around the entrance, rake leaves if needed, pull weeds, trim shrubs, and clean gutters. It may also be worthwhile to invest in a nice new welcome mat, clearer address numbers, and even fresh paint for the front door.

11. Renovate, if needed.
Prospective buyers will often be more interested in your home if you can rejuvenate your space by updating appliances. And as stated above, putting fresh slipcovers over old furniture can really go a long way!

12. Give every room intention.
Make sure your living room is arranged to inspire conversation and lounging, turn your spare bedroom into a peaceful office or reading room, make your bathroom into a personal spa, etc. Demonstrate how potential buyers can use your home in meaningful ways.

13. Close the toilets!
This may seem minuscule, but you want to positively manipulate the psychology of your prospective buyers. Try to keep their minds on charm and cleanliness, rather than bodily functions!

14. Move things to facilitate walk-throughs.
As stated above, practice walking through your home as though you’ve never been there. Is your space easy to navigate? You want buyers to be focused on the lovely features of your house – not tripping over poorly-placed furniture.

15. Strike the perfect balance between clean and “lived-in.”
Most of our list has dealt with keeping things clean, minimalist, neutral and in tiptop shape. It’s also important to keep your house feeling like a home. Hang cute and clean potholders in your kitchen, create a comfortable reading spot in the spare bedroom or on the loveseat, place a deck of playing cards on the coffee table, place a well-kept herb garden on the back porch, etc. Give everything a purpose, but remember that you’re showing your space to people looking for a new home!

16. Show off the selling points!
When preparing to sell your home, try to draw attention to its wonderful, unique attributes. Place a lovely painting above the mantel to show off the fireplace, set a pretty bouquet of flowers on the dining room table to highlight the ideal spot to have dinner with family, place a decorative bar of soap on the edge of the spa-worthy bathtub, light up the reading nook with an attractive lamp… yes, you’re looking to impress, but you can still be creative!

The real estate market is highly competitive. If you’re getting ready to sell your home, it’s definitely worth it to devote some quality time and effort to preparation. Going over key steps like the ones above can make so much difference – a difference that can likely be measured in dollars!

Home Buyers • August 22, 2022

Why Get a Home Inspection?

by Ethan Pontz

A house is often the largest purchase most people will ever make. The period between signing the contract and closing on the house is nerve-wracking for homebuyers. From securing a mortgage to hiring a mover, so much happens in a relatively short amount of time.

Whether you’re a first-time homebuyer or a seasoned homeowner, it is essential to get a real estate home inspection to ensure that your new property is in good condition.

Why Have a Home Inspection?
When you buy a home, there are lots of costs involved. You have to come up with a downpayment, pay for an appraisal, and provide enough money to cover closing costs. Nobody wants another expense, but it’s crucial to have your home inspected by a professional.

While it may seem like you can spare the cost by looking for home inspection tips online and checking the house for defects on your own, you will almost certainly miss things that a licensed home inspector is trained to spot. The following are eight reasons to hire a professional to perform your real estate home inspection:

1. What You See Isn’t Always What You Get
While a home may seem like it’s in good condition, it’s always possible that there are issues beneath the surface. There might be mold that was concealed by a painter. The roof might have a leak that is invisible to the untrained eye. There might even be a layer of asbestos tiles underneath the flooring.

2. Protecting Your Rights
Your purchase contract should have an inspection contingency — a clause or provision that allows you to back out of the sale if you find issues with the house upon inspection. If you find a problem with the home, the seller and their attorney won’t immediately free you from your obligation to purchase. They will want to see a report from a licensed home inspector addressing the issue.

3. Future Aggravation from Unforeseen Complications
Flipping the lights on and off to see if they’re working won’t tell you if the wiring is in good condition, or if there is enough electricity in the home to handle your dishwasher, blowdryer, and microwave all at once. Dialing up the thermostat to see if the heat works probably won’t reveal the age or condition of the system, either.

Before you take ownership of the home, the onus of ensuring that everything in the house is up to par lies with the seller. The last thing you need is for the HVAC system to quit on you a year after buying the home — it will no longer be the seller’s responsibility, and you’ll be out thousands of dollars.

4. Permitting Issues
If an insured but illegally installed water heater breaks, the insurance company won’t cover it. The same situation will occur if a flood damages home improvements that the seller made without permits. Your homeowner’s insurance policy might not cover the repairs since the original work was done illegally, even though it was done before you bought the home.

5. Your Safety and Well-Being
Carbon monoxide, formaldehyde, and radon are deadly, odorless gases that might be permeating the air of your home. You might be able to check for these on your own, but it is probably better to hire a professional instead. A minor carbon monoxide leak could turn into a serious problem before it attracts the attention of a standard detector.

6. Structural Surprises
Although a building’s structure seems straightforward, it’s actually pretty complicated. An architect typically designs the framework, determining the placement of support beams that will carry the weight of the house. Unfortunately, not every builder constructs the home as drawn by the architect. While you can perform a visual inspection of a home’s supporting beams, you won’t know if they are the right size or if the builder placed them correctly.

7. Unexpected Demands on Your Budget
Whether or not you’re overextending yourself financially by buying a home, you should know what to expect for budgeting in the future. How long will your HVAC system last? When will you have to replace the roof? The answers to these and many other questions will be in an inspector’s report.

8. Maintenance Mysteries
Once you own your home, you will have to maintain it. A home inspector will give you a detailed maintenance report to teach you how to inspect your systems, how often to change your filters, how to check the interior and exterior of your home for defects, and everything else you need to know to keep your home in top shape.

Although a house with tiled bathrooms and granite kitchen countertops might be attractive or seem like the perfect fit, it’s not necessarily in good condition. The only way to make sure that everything is above board and a good investment is to hire a professional to perform a real estate home inspection.

Events • Lake Tahoe • Real Estate • Truckee • June 29, 2022

COME CELEBRATE 4TH OF JULY IN TRUCKEE-TAHOE!

by Ethan Pontz

The 4th of July weekend is upon us and below are some of my favorite events and the best way to get there!Truckee ParadeJoin us for the annual Truckee 4th of July Parade along Donner Pass Road, held on the actual 4th of July! It’s a Truckee tradition and fun for the whole family and community. Free to spectators. The parade kicks off with fire trucks sounding their horns, police cars and their sirens, big rig trucks, classic cars, horses, local nonprofits and organization floats, marching bands and more! It starts at the Donner Pass Rd from Truckee High School Fields winding down Donner Pass Road ending at Church St. Taking TART is one of the best ways to get downtown and avoid traffic and parking. If you are in Tahoe Donner, you can walk, bike or park at the Trout Creek trail and take the pave trail down that puts you directly downtown at the intersection of Donner Pass Rd and Bridge St.Donner Lake West End Beach 4th of July Fireworks!Fireworks are back on at Donner Lake. Get tickets by following the link below. Fireworks can be seen from the Tahoe Donner Marina. Email or text me for the best location to see them from the Marina. There’s a nice section away from the crowd and that’s where you’ll find us! 😉

Come spend the day on the beach, listen & dance to music, play games, eat BBQ and watch the fireworks!Truckee-Donner Recreation & Park District Residents & Homeowners: $10 each • (Max. 7 tickets tickets per adult resident)Lake Tahoe Drone Sky Shows

This year Lake Tahoe will be lighting up the skies with drones! Come check a different way to experience 4th July with 3 different events happening in Incline Village show on July 4th, Kings Beach show on July 3rd and Tahoe City’s show on July 4th. Follow the link below for all the North Lake events happenings included parades, music and other fun events!TART Connect

This Summer, TART Connect will provide service in Truckee and Lake Tahoe. TART Connect offers a FREE and easy way to leave the car behind. TART connect offers curb-to-curb service and connections to TART’s bus service. Reserve your trip via the app or phone and you will be picked up in as little as 15 minutes. This is a great new service our town is offering. Just download the app and schedule your pick. Just like Uber and Lyft but without the cost!Property ManagementLooking to short term rent or summer/ski lease your property? Look no further and check out my friends at Tahoe Cohost Collective. A offer a new and fresh way to manage your property on your terms!

The Tahoe Cohost Collective brings a fresh perspective to vacation rental management. Unlike the traditional property management approach, TCC offers a hands-on experience for owners and renters alike through co-hosting.

Why co-hosting over traditional property management? Co-hosting gives owners more transparency into the management of their home. Owners always have access to their listing, can view rentals in real-time, and get paid as the reservations check-in. The TCC team works closely with owners to develop a rental strategy that makes sense for their home and their revenue goals. Co-hosting is the most flexible, transparent, and accountable solution for managing today’s vacation rentals.

From listing management to guest communication, insurance, and scheduling, TCC is your co-host, taking on the most tedious parts of managing a vacation rental so you don’t have to. Sit back and enjoy professional management with exceptional service, so you and your family can get the most out of your Lake Tahoe home without the worry or effort.

Tahoe Cohost Collective offers owners:

Listing creating and management
Dynamic pricing efforts
Guest communication
Marketing
Reservation management
Cleaning schedules
Repair schedules
Audits of your home
Local team
Insurance (paid for by your guests)
Referrals for local vendors (including photographers, handyman, etc.)

Please reach out to me directly with any question and have a wonderful and save 4th of July weekend!

Market Trends • May 11, 2022

Truckee Tahoe Market Stats April 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 April 2022

Residential Sales Summary 2022

Total Residential Sales:

Despite the extreme lack of inventory, we are still seeing a normal number of sales this winter. There were 352 residential sales through the end of April (93 in April), which is just 2% below the 5 year average (361 sales) for the period and just slightly above the 10 year average (350). Homes that come on the market are mostly selling fast, with a median of 9 days on the market YTD, and just 6 days in the month of March.

Median and Average Sales Prices: Sales prices continue to appreciate. Comparing Q1 2020 to January through April 2022, the average sales price of a single family home has jumped from $1,168,175 to $2,275,328 (a 95% increase!), and the median has jumped from $727,500 to $1,400,000 (a 92% increase). Over 31% of single family sales YTD were over $2 million, including 20 sales over $5 million, 11 over $10 million, and 1 over $20 million. For comparison, in Q1 2020, just 9% of sales were over $2 million, including 4 over $5 million, and 0 over $10 million.

Active Residential Inventory:

Active Listings:

The spring uptick in new listings coming on the market has begun. We are up to 149 residences actively for sale (109 single family homes and 40 condos), after bottoming out around 80 in March. That said, inventory is still at the lowest levels we have seen historically (Around 20% of the 10 year average for this time of year). If you are looking to sell, there is still very little competition in most neighborhoods and most price ranges.

The 167 new listings in April marks the second lowest April total in 10 years (trailing only the lockdown month of April 2020). Overall, the number of new listings during the last 12 months is the lowest for that period in 10 years, 23% lower than the 5 year average for the period and 22% lower than the 10 year average.

Current Pending Sales: The number of pending sales is at 124 (up slightly from 120 last month). About 90 residences went into contract in April (down slightly from 95 in March).

Current inventory represents a little over 1.5 months of supply relative to April activity.

Sales Under $500,000: January through April there were 26 residential sales under $500k, representing 7% of total sales. In the same period in 2021, 11% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999: Year to date, 121 residences sold between $500,000 and $999,999, representing 34% 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 124 residences have sold between $1m – $2m, representing 35% of total sales. For the same period in 2021, homes sold in this price range represented 30% of total sales.

Luxury Home Sales Over $2 Million: 81 residences have sold over $2 million, representing 23% of sales. For the same period in 2021, 78 homes sold over $2 million, representing 17% of sales.

What’s Going On Looking Forward?

We are ready to wrap up the slower winter season and jump into summer! What kind of activity will that bring in the market? Will demand continue to outweigh supply? Or, will the tides turn and bring more balance to the market? It will be very interesting to see.

The shortage of inventory, and lack of new supply, is still the dominant feature in the market. However, there are some questions about how strong demand will be this summer. There are significant variables like inflation, interest rates, the Russia-Ukraine War, short term rental regulations, covid 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. Our expectation is that supply (new listings and inventory) will be increasing significantly over the next few months, but will remain low for the time of year. If that holds true, the trend toward smaller numbers of transactions will continue. For the last month, 2 to 5 offers has been a common story on many new listings, but some properties take a little time to see offers. Sellers are still in the driver’s seat.

Placer County’s short term rental regulations are now in place. The new model includes a cap of 3,900 permits and requires some property owners, who used to be exempt, to apply for permits going forward. Truckee has officially approved their regulations which will cap the number of permits at 1,255, require a 1 year waiting period for new owners to apply, and will phase out short term rentals in multi-family housing and accessory dwelling units. If you own a short term rental up here, definitely reach out to me so we can connect you to the right information to continue operating your rental.

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 # 1908304

Market Trends • April 20, 2022

Truckee – Tahoe Market report Q1 2022

by Ethan Pontz

Coldwell Banker

2022 Real Estate Market Report

North Lake Tahoe -Truckee

Residential Properties – Single Family Homes and Condominiums

Activity through Q1 2022

Residential Sales Summary 2022

Total Residential Sales:

The first quarter has come and gone and real estate market activity is perking up. Despite the extreme lack of inventory, we are still seeing a relatively normal number of sales this winter. There were 258 residential sales in the 1^st quarter (98 in March), which is about 4% below the 5 year average (268 sales) for the quarter and just slightly above the 10 year average (256). Homes that come on the market are mostly selling fast, with a median of 11 days on market for the 1^st quarter, and just 9 days in the month of March.

Median and Average Sales Prices: Sales prices continue to appreciate. Comparing Q1 2020 to Q1 2022, the average sales price of a single family home has jumped from $1,168,175 to $2,363,205 (a 102% increase!), and the median has jumped from $727,500 to $1,375,000 (an 89% increase). Over 30% of single family sales in Q1 were over $2 million, including 17 sales over $5 million, 10 over $10 million, and 1 over $20 million. For comparison, in Q1 2020, just 9% of sales were over $2 million, including 4 over $5 million, and 0 over $10 million.

Active Residential Inventory:

Active Listings:

We are up to 110 residences actively for sale (80 single family homes and 30 condos), after bottoming out around 80 last month. This is a bit of an early uptick in the number of homes coming on the market, as it usually starts in late April or early May. That said, inventory is still at the lowest levels we have seen historically, around 1/5^th of the 10 year average for this time of year. If you are looking to sell, there is still very little competition in most neighborhoods and most price ranges.

How did inventory get so low? The biggest factor has been incredibly strong demand. Buyers have been whacking away at the inventory at a record pace since May of 2020. The supply side has also contributed. We are now at 11 consecutive months of the number of new listings being below the 5 and 10 year averages for that month. The 116 new listings in March marks the third lowest March total in 10 years. Overall, the number of new listings during the last 11 months is the lowest for that period in 10 years, 22% lower than the 5 year average for the period and 20% lower than the 10 year average.

Current Pending Sales: The number of pending sales is down slightly at 120 (from 123 last month). About 95 residences went into contract in March (up from 75 in February).

Current inventory represents a little over 1 month of supply relative to March activity.

Sales Under $500,000: In Q1 there were 19 residential sales under $500k, representing 7% 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, 92 residences sold between $500,000 and $999,999, representing 36% of total sales. For the same period in 2021, 45% of sales were in this price range.

High End Home Sales $1,000,000 to $1,999,999: 89 residences have sold between $1m – $2m, representing 34% of total sales. For the same period in 2021, homes sold in this price range represented 28% of total sales.

Luxury Home Sales Over $2 Million: 56 residences have sold over $2 million, representing 23% of sales. For the same period in 2021, 35 homes sold over $2 million, representing 17% of sales.

What’s Going On Looking Forward?

Despite some new snow this week, ski season is winding down fast and things are looking very green at lake level. It will be an early start to the golf, mountain biking, hiking, and climbing seasons.

As far as the future of the real estate market . . .

Placer County’s short term rental regulations are now in place. The new model includes a cap of 3,900 permits and requires some property owners, who used to be exempt, to apply for permits going forward. Truckee is in the process of developing regulations which will cap the number of permits at 1,255, require a 1 year waiting period for new owners to apply, and will phase out short term rentals in multi-family housing and accessory dwelling units. If you own a short term rental up here, definitely reach out to me so we can connect you to the right information to continue operating your rental.

The shortage of inventory, and lack of new supply, is still the dominant feature in the market. The supply side will truly determine what 2022 looks like. There are also significant variables like the Russia-Ukraine War, short term rental regulations, covid, inflation, interest rates, and mother nature (snow, fires, etc), that are going to have an impact on activity. Our expectation is that supply (new listings and inventory) will be increasing significantly over the next few months, but will remain low for the time of year. If that holds true, the trend toward smaller numbers of transactions will continue. In December, I thought pricing might hold steady this winter. However, the continued tight supply was met with another surge in demand that has prices jumping again. For the last month, 2 to 5 offers has been a common story on many new listings, but we have also seen 10+ offers in some situations. Sellers are still in the driver’s seat and are strengthening their grip on the wheel.

Contact Your Coldwell Banker Agent Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.