Tahoe Mountain Report
In-Depth Market Reports for the Lake Tahoe-Truckee Region
At the outset of 2023, the landscape of Tahoe-Truckee real estate is undeniably different than a year ago. Consumer sentiment is notably more cautious in stark contrast to the frenzy of the preceding year. Despite headwinds in the housing sector, there remains steady demand and capacity to purchase.
The first six months of 2022 was a continuation and in fact the apex, of frothy conditions defined by excessive demand along with historically tight supply resulting in outsized price gains.
While the second half of the year was defined by moderation. Relative to the previous 24 months, inventory grew just enough for consumers to have buying options, slowing the sales cycle to a more normal pace. The absence of distress or any overhang of listings has caused pricing to recede only from the absolute peak while maintaining nearly all the gains from 2020 and 2021.
Despite the fewest transactions in a decade, total sales volume exceeded $2 billion for only the third time ever. For the year, median price rose 7% to $1,075,000; eclipsing $1 million for an entire year for the first time ever.
Though, Tahoe Lakefronts and Martis Camp led in the ultra-high end with transactions exceeding $10 million, well-amenitized resort communities offering modern architecture and newer construction also surged in pricing. These include Lahontan, Schaffer’s Mill, Gray’s Crossing, Old Greenwood and Northstar among select others. Communities with little or no available inventory have continued to increase in price while the rest of the market settles. This includes the niche enclaves of Sugar Bowl’s Snowbound Village and Mountainside at Northstar.
Of course, not all market classes perform equally. Vacant land sales have languished as factors beyond simple supply and demand ratios impact sales.
The use pattern of consumers for Tahoe real estate has returned to a more traditional second home model as the rush for primary or co-primary homes has ebbed. An emerging demographic of hybrid work has allowed for days spent partially behind a screen balanced with time on the mountain. This has created new demand for coffee shops and public co-working spaces; particularly the unique circumstance where the two are combined.
The fundamental value in Tahoe-Truckee homeownership will continue to deliver an enhanced lifestyle benefit that transcends economic values this year and for years to come.
