Lake Tahoe real estate continued to strengthen last year, with sales volume jumping 17 percent from 2015. The increase is attributed to an eight-percent uptick in the number of homes sold, as well as a 12-percent rise in median home price.
The figures are part of a year-end report released by Lake Tahoe-based real estate agency Chase International. The numbers compare all MLS home sales from Jan. 1, 2016 through Dec. 31, 2016 to the same timeframe of 2015. The number of homes sold for more than $1 million had a significant impact on volume, which increased 28 percent around the lake. The median price of a home in Lake Tahoe is $549,000.
The East Shore saw the biggest movement in sales, with a 65-percent increase in homes sold for over a million and an 11-percent increase in homes sold for under a million. Volume and units sold were up 52 and 26 percent, respectively. The percentage of homes sold over the million mark was also up in Incline Village (35 percent) and South Shore (47 percent).
Tahoe City was the only area that saw declines throughout the year, with volume and units sold numbers down five and six percent, respectively. Values remained stable, with a six percent rise in median price (to $590,000). The most expensive area to buy a home is Incline Village, where the median price of a home rose 11 percent (to $1,016,500). The least expensive area to buy is South Shore, where the median price of a home is $415,500 (up 15 percent).
“There’s a lot of responsible growth taking place in the basin right now,” said Susan Lowe, corporate vice president for Chase International. “South Lake Tahoe is experiencing redevelopment at its best and Kings Beach has really evolved into a visitor and pedestrian-friendly community. There’s been a real renaissance in tourism which directly affects the housing market.”
The Tahoe area fared slightly better than the national trend. According to the National Association of Realtors, existing home sales in 2016 were expected to close 3.3 percent higher than 2015. Due to increasing mortgage rates and shrinking consumer confidence, only small gains are expected nationally in 2017.
The sale of million-dollar homes nearly doubled in Truckee (up 95 percent) while volume jumped 48 percent and the number of units sold increased 19 percent. The median price of a home in Truckee rose 13 percent to $629,000.