As Lake Tahoe real estate continues to make headlines for low inventory, multiple offers and over ask closing prices, many people are wondering how, in the midst of a pandemic created recession, some people are still able to buy luxury homes in Lake Tahoe. The reality is that wealthy city residents get a lot more bang for their buck at the lake they love to visit AND they are not subjecting themselves to an area with a high population all within close living quarters of each other. When you live in the mountains, you can spread out, enjoy social distancing activities and get a big house with a yard for less than a condo in the midst of a big city. In May we started to see a shift in the buyer activity as well as an increased interest in luxury homes in Lake Tahoe. This increase has driven housing prices up with the median entry point for luxury starting at $2.97 Million in the U.S.
It is also important to note that there was a shift in buyer’s needs. Prior to the pandemic, people were tied down to living close to their work and schools. The transition from onsite learning and employment to remote has allowed people to not only want more space but have the ability to move wherever they want. The truth is that Covid-19 hasn’t impacted everyone equally. While service industry folks were hit hard, many high-income earners were able to not only keep their jobs but save money by staying home. This allowed them to not only have the freedom to live wherever, but also afford luxury homes in Lake Tahoe. In addition to a new interest in this particular niche of real estate, there is also a shortage of these caliber of homes available. In May, the number of homes priced a million dollars and up dropped almost 16%. Generally, this type of Lake Tahoe real estate takes longer to sell. After all, not everyone has millions of dollars sitting around readily available. Lately though, we have been seeing these properties receive offers, if not multiple, within just a couple weeks of being on the market.
It is also important to note that when buying or selling Lake Tahoe luxury homes, it is crucial to work with someone that understands this sector of real estate. Not only do sellers have different expectations, but so do buyers. These are consumers who have more money to spend and require a different level of marketing and experience. While it is easy to price an entry level home, a custom-built house with features not found in nearby properties requires expertise, extensive local market knowledge and the latest technology. If you are thinking of listing or buying Lake Tahoe luxury homes, feel free to give me a call. I would be happy to help!