Million-Dollar-Plus Homes are Hot Ticket in Lake Tahoe
Million-dollar-plus homes are the hot ticket in Lake Tahoe, according to a mid-year analysis by Lake-Tahoe based real estate agency Chase International. The report, comparing mid-year 2005 figures with mid year 2004, shows a 49 percent increase in units over $1 million sold while there was a decrease (15 percent) in homes sold under $1 million.
While million-dollar-plus homes showed the biggest jump in sales, homes under $1 million still sold more overall - 538 single-family homes were sold in the past six months compared to 128 homes priced over $1 million. The average price of a home around Lake Tahoe is $980,024 (up 15 percent from this time last year).
"We're seeing low inventory for homes and condos in the lower price range," said Corporate Vice President for Chase International Sue Lowe. "Overall sales volume is up around the lake but the million-plus market is reaping the benefits of the number of homes available. "
There was a seven percent increase in sales volume around the lake. South Shore had the largest increase in sales volume, up 19 percent to $181,926,386 - the area with the largest dollar volume in the Tahoe Basin. Incline Village had a 12 percent increase in volume (to $172,314,000) and Tahoe City's overall sales remained steady, rising just one percent to $118,472,780. The East Shore showed a decrease of 14 percent to $76,575,100.
Sales of homes in the million-plus range jumped substantially on the South Shore where there was a 214 percent increase in units sold (22). Tahoe City also saw the sale of 22 homes over $1 million, a 69 percent increase from last year. Incline Village was home to 64 sales in that range, up 31 percent. East Shore experienced an 18 percent increase in million-plus sales (20 homes).
Sales of homes under $1 million were down across the board. East Shore had the largest decrease in sales (40 homes, down 38 percent). Selling the largest number of under-million-dollar homes was South Shore (303, a decrease of 17 percent). Tahoe City remained fairly steady with only a two percent decline (123 homes sold) and Incline Village experienced a 13 percent decrease (72 homes).
According to Lowe the disparity between the markets was a direct result of the availability of homes and the steady rise in home prices. While South Lake Tahoe is home to the lowest average home price on the lake ($559,773), it's up an astounding 35 percent from 2004. The highest average-priced home on the lake can be found on the East Shore for $1,276,252 - up 21 percent. The average price for a home in Incline Village follows closely at $1,267,015. Tahoe City was the only community to show a decrease in average home price ($817,054, down three percent).
Even condominium sales are feeling the effect of low supply and high demand. Sales and inventory of condos under $500,000 was down 40 percent around the lake with 138 units sold compared to 229 in 2004. Condos over $500,000 saw a 32 percent increase in sales (83 units sold). Overall sales volume of condos was down seven percent to $115,826,197. However, the average price of a condo in Lake Tahoe is $496,932, up 19 percent.
The average price of a single-family home in Truckee is $779,024, reflecting a 24 percent jump from 2004. Sales of Truckee homes under $1 million was down 35 percent (213 sold) and homes over a million were up 23 percent (38 sold). Overall sales volume in Truckee was down 13 percent to $195,334,900 as was units sold (down 30 percent to 251).
Forbes.com recently rated Crystal Bay and Glenbrook (both in Nevada) as two of the 25 most expensive communities in the nation. The article also noted that, according to the U.S. Office of Federal Housing Enterprise Oversight, California home prices increased nearly 100 percent between 1999 and 2000.