LAKE TAHOE, Calif./Nev. – Summers in the Tahoe Basin are one of the major draws for those buying real estate here—whether they’re looking for an investment in a vacation destination or seeking out a more permanent home, it’s undoubtedly a reason that people flock to Lake Tahoe. As the season winds down, the Tribune is taking a look at how real estate played out this year.

For several of the markets around the lake, real estate took time to heat up—potentially due to the buyer’s market conditions. Sabrina Belleici, owner and founder of Inside Incline, also attributed it to lower consumer confidence with fluctuating interest rates. “There were plenty of scare-tactic headlines that made people feel uncertain,” she said.

Tahoe Mountain Realty’s news also indicated a low sales absorption rate that was affected by interest rate shifts. “Unlike in more traditional markets, today’s buyers remain cautious, and lower pricing alone doesn’t always prompt action,” said their August real estate market update.

On the south shore, median sales prices for condos averaged at $550,000 through June to August this year, with median single-family home prices at nearly $696,000 through the same time period. Dustin Allen, a South Shore associate with Sierra Sotheby’s, said there were 217 active listings and 67 in contract, as opposed to last year where there were 200 listings and 38 in contract.

“It was a good market for buyers this summer,” said Allen. He attributes the slower start to some of the unexpected weather this year, which he says impacts the market quite a bit.

Once things got started, buyers were willing to move on properties that somewhat fit what they’re looking for. “Buyers are more willing to talk to realtors and get creative. There’s deals out there,” said Allen.

But luxury markets continued to lead the sales this summer. Belleici said that her group was high in luxury sales all year, which she called “pretty rare.” According to Tahoe Mountain Realty, sales under $1 million account for only 44% of all regional transactions, while sales over $2 million and above have continued to grow—though the $2-3 million range was a softer spot in the market for the realty group.

Ming Poon, a realtor with Tahoe Mountain Realty, said that August was the biggest transaction flow in the last two years. They have increased inventory, but Poon suggested that the increased choice could lead to “analysis paralysis”, which could explain the decreased deal flow.

Poon also suggested that major tax breaks for the wealthy have likely contributed to the strong luxury market. There’s been a softening in condos, but not single-family homes in the north shore, and record-breaking sales in July: there were three sales over $10 million (including a Martis Camp estate), seven sales over $5 million and the highest ever sale in Lahontan at $6.85 million.

Belleici reported three sales in the $20-40 million range in the Incline Village and Crystal Bay markets and that there was continued listings throughout the summer. “Interest rates don’t always impact us since we have lots of cash buyers, but it does impact other listings,” she said.

Crystal Bay continued to hold down lakefront sales for this smaller market, though there was also interest in properties near Cal Neva. “I think the excitement around Cal Neva is driving people to invest in the area, so they can be walking distance from their health and wellness center or other amenities,” said Belleici.

Kristina Bergstrand of Compass said that there was a surge in sales in August for the lakefront segment of the north and west shores. Sold prices have also been higher this year, with the highest reaching $27.5 million. From the end of July to the end of August, there were eight lakefront sales, making up a majority of the 11 lakefront sales this year. This is a little lower than 2024, which saw 16 lakefront sales through the year, but Bergstrand said, “We still have three months left in the year,” and September tends to be busy for the Tahoe-Truckee markets.

Allen agreed. “As we enter the holiday season, it tends to calm down, but it’s a great time to be a buyer when there’s less attention after the summer, and less competition.” He also anticipated that the economic direction would be good as rates come down. “Under 6% would be what we need to see more affordability in the market.”

“All the trends I normally think about didn’t happen this year,” said Belleici. “The pandemic created a year-round market, and buyers are changing the trends in this unique market.”

Belleici told the Tribune that, despite the slow start, they had caught up in the last month and a half, surpassing sales from this time last year.

Belleici said that insurance and HOA fees would continue to impact sales, especially condo sales. But the market in Incline Village and Crystal Bay closely follows the financial markets and she suspects that will likely remain consistent, as it has since 2023. She also said she believes that people are getting used to the unpredictable headlines, which would impact consumer sentiment less as the market continues to shift.

Poon also acknowledged the effects of the pandemic on realty in the Tahoe Basin, saying they were still working back up to historical averages. “But people still want to be here, regardless of back-to-work or post-COVID sentiments; there’s still a crazy demand to not just own a home here, but to live here,” he said.

But Poon also wondered about the state of affordable housing in the area, especially because he says he wants his kids to be able to afford a home here if they chose to. “It’s harder than ever for locals to get in, and we want to change it and enable normal people to live here.”

Poon, who has worked with clients to buy homes to house workers, said that he would like to see protection or developments in place to support workforce housing and first-time homebuyers. He hoped that thoughtful real estate and other housing programs could make it possible. “We have enough wealth here to make it happen… and it’s important for the sustainability of Tahoe.”

September is one of the busiest months for the Tahoe-Truckee real estate market, and trends look as if luxury sales will continue to lead the market until the end of the year, with a continued lag for the middle.

Eli Ramos is a reporter for Tahoe Daily Tribune. They are part of the 2024–26 cohort of California Local News Fellows through UC Berkeley.