Optimism Following Q1 and a Strong Start to 2025
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Following an active first quarter in the Lake Tahoe real estate market for 2025, there is a sense of optimism as we look ahead to the Spring and Summer months, the time when we see the majority of our new listing inventory for the year. While single-family and condo/townhome transaction volume declined to 47, falling YoY from 53 in Q1 2024 and significantly lower than the historical average of 62, both Average Sales Price and Median Sales Price set historical records for Q1 at $2,045,000 and $1,125,000 respectively. These numbers were buoyed by 10 sales closing above $2,000,000, 3 of which closed above $5,000,000.
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Looking solely at the lakefront market, we saw 3 single-family homes transact in Q1 on the North and West Shores, with an Average Sales Price of $13,116,000 and a Median Sales Price of $6,200,000. The Moore Team represented one lakefront seller in Q1. With 3 lakefront sales in Q1, this year has had the most Q1 lakefront sales since 2021 as well as the highest sale price of $27,500,000. This top sale was the first property to transfer above $20,000,000 on the California side of the lake in over 3 years. There were no lakefront sales in Incline Village during the first quarter following a strong end to 2024, when two homes transferred above $33,000,000 during Q4, including a record breaking $62,000,000 sale. This recent activity above $20,000,000 in both California and Nevada has showcased significant buyer demand at the peak of our market. Owners of such properties looking to liquidate in the near future would be prudent to consult with a lakefront market specialist, such as The Moore Team, in order to understand the current value of their property and begin taking important steps to prepare their homes for the market. This is an opportunistic time of year to list Lake Tahoe real estate.
At the moment, there are 7 Lakefront homes currently listed for sale in California, priced from $5,250,000 to $30,000,000 and there are no properties pending sale. In Incline Village (including Crystal Bay), there are 4 Lakefront homes for sale priced from $26,000,000 to $49,500,000 and one property is pending sale, a $12,500,000 listing in Crystal Bay. Additionally, multiple Lakefront properties are being shopped off-market, and we urge any prospective Buyers to contact us for more information on these opportunities before they hit the market later this Spring.
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Looking Ahead to Spring and Summer
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We expect inventory to rise significantly over the coming months due to seasonal trends for new listings combined with unsold inventory of 2024 returning to the market. Even with rising inventory, we expect sales data will continue to impress in the near term, as transaction volume stays relatively muted. With so much volatility in the stock market, we expect to see some new buyers enter the real estate market, looking to restructure their investment portfolio with more tangible assets that can also be enjoyed with their families.
In reviewing the sales data so far this year, buyers are continuing to show a preference for newer or updated homes, which typically come with higher price tags but less unknowns. Properties in need of significant work or those that have not been properly prepared to come on the market have been sitting and will likely require price adjustments.
There are opportunities for both buyers and sellers in our current market. Sellers who are willing to put in the work upfront and properly prepare their home for a listing will maximize their return. It will be important to work with an agent who can give direction on what buyers are looking for so they are not spending on items that are overlooked. With an increasing number of off-market opportunities, Buyers would be wise to work with an agent who has a strong connections in the local real estate community and can notify them of listings before they hit the open market. Please notify us if you are looking for something specific so that we can keep you updated.
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