Average price for Tahoe area single-family home rises above $1.1M | TahoeDailyTribune.com

Average price for Tahoe area single-family home rises above $1.1M

FILE - In this March 6, 2018, photo a home is advertised as sold in Sunnyvale, Calif. U.S home prices rose rapidly in May 2018, a trend that is thwarting some would-be buyers and pulling down home sales. The S&P CoreLogic Case-Shiller 20-city home price index rose 6.5 percent in May from a year earlier. .(AP Photo/Marcio Jose Sanchez, File)

A strong luxury home market during the first half of 2018 has pushed the average price of a single-family home in the Lake Tahoe area to more than $1.1 million as the price of homes in the region continues to trend upward.

The average price of a single-family home sold around Lake Tahoe jumped 18 percent from this time last year, according to Chase International’s midyear report, which compared home sales from Jan. 1, 2018 through June 30 to the same timeframe in 2017.

“It’s been incredibly strong, and our outlook is for it to continue to be a very strong year,” said Sue Lowe, senior vice president for Chase International.

Lowe said sales of luxury homes (units over $1 million) have spiked during the last three months, helping push the market to more than half a billion in total sales through the first half of the year. Compared to last year, total sales of single-family units grew to $655,522,179 from $518,07,8597.

“For Nevada, I think it’s been driven by the tax benefits,” said Lowe. “For the California market, I think there’s a lot of cash out there right now and people are wanting to invest in a lifestyle.”

Luxury home sales in the Tahoe area increased 38 percent to 148 units sold from 107, while during that same period, homes priced under $1 million remained virtually stagnant.

Tahoe City and Incline Village had the biggest increase in the sale of million-dollar homes, rising 44 and 46 percent, respectively. Incline Village had the highest median price for a single-family home, which rose by 7 percent to $1,180,000. South Lake Tahoe, which has the lowest median, had an increase of 12 percent to $502,500.

“South Lake Tahoe is having a little bit of a struggle with their under-million-dollar market right now because of the possible vacation home ban,” said Lowe. “It’s definitely affecting that market … I think a lot of people are sitting on the fence to see if that gets voted in or not. If there is a ban, unquestionably it will affect real estate sales negatively.”

The highest price for a home sold during the first half of the year went to a 12,681-square-foot residence with lake access in the Sunnyside Tract of Tahoe City, which fetched a price tag of $45 million.

In Truckee, the median price of a home rose 10 percent to $737,500, with units sold for more than $1 million up 49 percent. Homes selling for less than $1 million fell by 8 percent, dropping to 207 units sold from 225.

Condos in Truckee saw an 18 percent increase in units over $500,000, while sales of units under that amount dropped by 37 percent. The average price of a condo in Truckee rose as well, climbing to $634,960 from $522,657. The price of Lake Tahoe condominiums also continued to rise, with the average price up 13 percent to $553,239. The overall sale of condos on the lake was up 9 percent in volume.

Lakewide sales reflect nationwide trends, according to Chase’s release, as the National Association of Realtors reports that the median listing price for homes reached an all-time record in June ($299,000). The organization attributes the increase to a shortage of homes for sale and high buyer demand continuing to push asking prices.

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