The Lake Tahoe real estate market experienced increases in both average and median home prices during the first quarter of 2014. For Tahoe as a whole, which combines the East Shore, South Shore, Tahoe City and Incline Village/Crystal Bay markets, the volume of sales was down nine percent. Yet the median home price in Tahoe increased 12 percent and the average price climbed 11 percent to $876,611. The entire region has had record lows in inventory contributing to the decrease in units sold and volume sold. The one sector at Tahoe where the volume of sales increased, was at the ski resort communities of Northstar, Squaw Valley and Alpine Meadows, by 39 percent.
These figures are part of a quarterly report released by Lake Tahoe-based real estate company Chase International.
Tahoe City saw sales volume jumped 48 percent over last year at this time, with $53,884,250 in volume sales recorded in 2014’s first quarter. Tahoe City’s average price increased a whopping 113 percent to $1,314,250, and the median price climbed 51%, from $417,000 last year to $630,000 during this year’s first quarter.
Incline Village showed an increase in average price of 23 percent, to $1,703,476. The number of units sold in South Shore over $1 million jumped by 100 percent. And the average price in South Shore increased by 20 percent, to $436,884. The East Shore market was down, due to several large sales that transpired in 2013 and a continued lack of inventory.
“There continues to be an uptick of interest and sales in the market’s upper end offerings,” said Sue Lowe, corporate vice president for Chase International. “And in the under $1 million market, prices are continuing to climb.”
Lawrence Yun, chief economist for the National Association of Realtors notes that NAR’s forecast for home sales is to be lower by five percent in the first half of this year versus the same period a year ago. However, Yun predicts that sales are projected to be two to three percent higher in the second half of the year, and home prices, because of a nationwide inventory shortage, will keep marching higher.
The Truckee market posted some impressive gains with a sharp jump in median price of homes sold—up 29 percent to $635,000 and an average home price increase of 24 percent, to $858,304. However, Truckee sales volume over this time last year was down six percent.
Chase International has 10 offices in the region. For more information about Chase International, visit www.chaseinternational.com.