ZEPHYR COVE, NV – Lake Tahoe’s real estate market was off to a slow start in the first quarter, with lake-wide sales volume down eight percent and median home prices down ten percent to $515,000. The number of homes sold, however, was up three percent.
The figures are part of a report released by Lake Tahoe-based real estate company Chase International, and compare the prices and closings from January 1 through March 31, 2015 to the same time period from 2014.
While lackluster in most areas, Tahoe’s East Shore sales continued to prosper with an 85 percent jump in volume and 20 percent increase in units sold. The less-traveled, upscale community sees fewer overall sales than other areas, but with higher price tags. There was a 233 percent increase in units sold for more than a million and a 90 percent rise in median sale price ($1,210,000).
Incline Village experienced a substantial decline, with a 52 percent drop in volume and 29 percent decline in units sold. The median price of a home dipped 17 percent to $795,000 with units selling for more than $1 million falling 55 percent.
“It’s very early in the year for this to be truly indicative of what the year holds,” said Sue Lowe corporate vice president of Chase International. “Three or four sales in one area can briefly affect the numbers. Winter is historically not a prime time for buying; couple that with the unseasonable weather and limited inventory and our numbers are not surprisingly soft during these first few months of 2015.”
Nationally, the overall outlook for spring home sales is good. The National Association of Realtors (NAR) noted the Pending Home Sales Index, a forward looking indicator on contract signings, was up slightly in February, rebounding from a slight downward revision from January.
“Pending sales showed solid gains last month, driven by a steadily-improving labor market, mortgage rates hovering around 4 percent and the likelihood of more renters looking to hedge against increasing rents,” said Lawrence Yun chief economist for NAR. “These factors bode well for the prospect of an uptick in sales in coming months. However, the underlying obstacle – especially for first-time buyers – continues to be the depressed level of homes available for sale.”
South Lake Tahoe remained relatively stable, with a two and four percent decline in volume and units sold, respectively. The median home price rose three percent to $375,000. In Tahoe City, prices were down and sales were up, reflecting bigger movement in homes selling for under a million – activity pointing to a lack of higher end homes available. The median price of a home dropped 16 percent to $540,000 with homes selling for under a million jumping 55 percent. Volume and units sold was up 17 and 48 percent, respectively.
In Truckee, the real estate market is encouraging as sales volume was up 11 percent and the average price of homes jumped from $858,631 during the first quarter of 2014 to over $1 million—$1,022,594 for 2015’s first quarter.
The sale of condos was down across the board at Tahoe, with a 22 percent decline in units sold and 43 percent drop in sales volume.
About Chase International
Headquartered in Lake Tahoe, Nevada since 1986, with nine offices in the region (Zephyr Cove, Glenbrook, Incline Village, Tahoe City, Squaw Valley, Truckee, South Lake Tahoe, Carson Valley and Reno) and one in London, England, Chase International and its exclusive affiliations handle a large share of the country’s property. With 310 professional Realtors® boasting an array of industry certifications and the highest volume per sales agent in the area, Chase International successfully represents homes at all price levels. For more information about Chase International, visit www.chaseinternational.com.