First Quarter Statistics - Lake Tahoe and Reno Area Sales

This is the first in a series of quarterly posts on the state of the market for the Lake Tahoe Basin, Truckee, Reno/Sparks and the Carson Valley. As Corporate V/P of Chase International, I have been the "gate keeper" of the overall statistics quarterly. I will be bringing you my thoughts and factual data on the market trends. I look forward to lively input on these "real" numbers as we move forward.

The numbers are obtained through the South Lake Tahoe, Incline Village, Tahoe Sierra and Northern Nevada MLS's.

First Quarter 2008 versus First Quarter 2007

The market is currently filled with opportunity! People who are seriously looking to invest in real estate are buying right now. They are not waiting for the perceived “bottom of the market” to happen. The bottom has happened and because of that there are fantastic opportunities for the smart investors and first time homebuyers. If you are willing to take advantage of this opportunity, there are some great deals out there.

In a nutshell, the Tahoe-Reno real estate market is experiencing a shift towards mid to lower range home sales (under $1 million) and away from multi-million dollar homes. We’re seeing a considerable pick up in the lower end of the market, while high-end homes sales aren’t moving as vigorously as they were in the first quarter of last year.

The average price of a home throughout all of Lake Tahoe dropped under $1 million for the first time since 2004. The average price is now $909,919 (down 38 percent). The median price of a home in Lake Tahoe is down 25 percent to $662,172. Homes sold for more than $1 million were down 57 percent while homes sold for less than a million were down only five percent.

Overall sales volume around Lake Tahoe was down 48 percent with a 20 percent decrease in homes sold. I believe the market is beginning to level and the disparity in the numbers is a result of a handful of ultra high-end sales this time last year (six homes were sold for more than $5 million during first quarter 2007). This year there have been only two sales over $5 million, one of which was not included in this statistical MLS report.

Except for a four percent increase in units sold for less than $500,000, the sale of condos was also down around Lake Tahoe, with volume and units sold down 50 and 32 percent respectively. Units over $500,000 dropped 71 percent. The average price fell 18 percent to $437,174.

Tahoe City experienced a 25 percent surge in the sale of single-family homes under $1 million, while sales of homes over a million dropped 33 percent. Overall sales volume in Tahoe City is down 25 percent, however total units sold is up nine percent. The average price of a home in Tahoe City is $856,152, down 33 percent from $1.2 million this time last year. The median price is down 22 percent to $575,000 (the median price is the point where half the homes sold for less than the median figure and half sold for more).

Lake Tahoe’s East Shore also saw a significant increase (63 percent) in homes sold for less than $1 million and homes above $1 million were down 40 percent. And though overall sales volume was down 48 percent, units sold were up six percent. The average price of an East Shore home fell 51 percent to $1,183,363 and the median dropped 34 percent to $775,000.

South Lake Tahoe remains the least expensive area to buy a home on the lake, averaging $479,894, a 14 percent drop from first quarter 2007. The median price dropped 17 percent to $400,000. Overall South Shore volume was down 27 percent and units sold were down 15 percent. Homes sold for under $1 million fell only ten percent, while homes over a million were down 63 percent.

Incline Village experienced some of the biggest decreases, with sales volume down 73 percent and units sold down 61 percent. The average home price dropped 31 percent, to $1,120,266, while the median fell 21 percent to $898,688. Homes under a million decreased 50 percent and homes over a million were down 71 percent. However, an Incline lakefront sold in the first quarter that was on the market for $32,500,000 and is not included in any of the MLS data due to the sales price being confidential. If this number had been included in Incline’s statistics, Incline’s numbers would have faired much stronger.

Despite a national slow down and the decrease of multi-million-dollar home sales around the lake, Truckee’s luxury market continues to grow. Volume and units sold were down 19 and 23 percent respectively, but homes over a million jumped 56 percent and the average home price rose ten percent to $912,013. The median price rose three percent to $690,000. Homes sold for less than a million were down 37 percent. The sale of condos over $500,000 was also up in Truckee (43 percent), pushing the overall volume for condos in that area up 86 percent.

Reno/Sparks, Nevada checked in with decreases across the board. The average and median home prices both fell eleven percent to $344,408 and $270,000 respectively. Homes under a million dropped 31 percent and homes over a million saw a 52 percent decline. Overall sales volume was down 39 percent and units sold down 32 percent. The Reno/Sparks market slow down trends to the national decline in real estate, partly due to these areas being a permanent home markets, unlike Lake Tahoe’s second/vacation home market.

Carson Valley, Nevada saw a 200 percent jump in homes sold for more than $1 million, however the units sold in that category increased from only one to three. Homes sold for under a million were down 34 percent, with overall volume and units sold in Carson Valley down 38 and 32 percent respectively. The average home price is down nine percent to $377,840 and the median is $289,950.

For a PDF of the statistical charts please go to Discussions: