Lake Tahoe Lakefront Market Report
In 2020, all markets across Lake Tahoe experienced record breaking sales activity. The lakefront market report for Lake Tahoe showed relative stability in terms of rising home values. However, the number of lakefronts sold in Incline Village, and the North and West shores of Lake Tahoe experienced a 131% increase year over year. This has reduced inventory dramatically and should drive values higher.
Virtually every resort market across the United States experienced a surge in demand in 2020. The shelter in place order enabled people to begin working remotely. Now, in 2021, many are choosing a better quality of life over congested city living. This is something that can only be found in resort markets.
Because of Lake Tahoe’s huge feeder market of Bay Area buyers, 2020 saw an increase of 50% in sales activity. Currently, demand has reduced the amount of available homes. Many properties receive multiple offers the minute they come onto the market.
Median Sales Prices on the Rise
In most micro-markets, the median price of homes increased more than 10%. We expect that demand and low supply will drive lakefront values much higher in 2021.
Lakefronts on the West Shore had much stronger 2019 numbers to compete with, skewed by 8-digit sale prices that year. In March of 2021, the McKinney Lodge Lakefront Estate just sold for 31 million. This will set the pace for a high volume year in 2021 for West Shore lakefronts.
Incline Village is starting 2021 with very little lakefront inventory. Currently, there are 2 lakefronts available on the West Shore in the $44 million price range. In 2020, sales of lakefronts remained strong, and while demand continues to rise, available inventory continues to diminish.
From Rubicon Bay to Incline Village the year over year sales of lakefront units more than doubled. In 2019, only 16 lakefronts sold, while 37 lakefronts sold in 2020. The sales volume also increased because the median sale price of lakefronts grew from $5.3 million to $6.99 million.
Below is a recap for the 2020 Year End Market Report for lakefront sales. This market report covers Incline Village, and the North and West Shores of Lake Tahoe.
Incline Village Lakefront Sales 2020
Like other markets around Lake Tahoe, Incline Village showed strong numbers in units sold year over year. However, there was a 25% decrease in median sale price. The median sales price for a lakefront home in Incline Village was $14.4 million in 2019. In 2020, the median sale price had dropped to $10.8 million.
Only 4 lakefront homes sold in Incline Village and Crystal Bay in 2019, while 16 lakefronts sold in 2020. This rise in unit sales increased the sales volume 255%. In 2019, the sales volume was $58.3 million compared to $207 million in 2020.
Other aspects of the lakefront market held steady. Average days on market remained at 249 days in 2020, compared to 248 days in 2019. The sale to list price was at 94% in 2019. This dropped 2% in 2020, to 92% of sales to list price. As inventory continues to dry up, these figures will begin to match other micro markets around Lake Tahoe.
The most expensive Incline Village lakefront sale in 2019 was $24.5 million. In 2020, this figure rose to $27.5 million. Incline Village has a higher entry level lakefront price than other parts of North Lake Tahoe. The lowest lakefront sale in 2019 was $5.2 million, while this increased 14% to $5.9 million in 2020.
When looking at the median price of lakefront sales over the last five years, we see only a gradual increase. In 2016, the median price of an Incline Village lakefront was $9.5 million compared to $10.8 million in 2020. Incline Village has an overall higher price point. In 2020, 33% of all homes sold were over $2 million.
North Shore Lakefront Sales 2020
Lakefront home sales on the North Shore match to the same activity we experienced in most markets around the lake. The number of units sold doubled from 6 lakefronts sold in 2019 to 12 in 2020. There was a 20% increase in the median sale price year over year. The median price was $4.3 million in 2019, and increased to $5.2 million in 2020. This higher median price and units sold drove a 162% increase in sales volume. In 2019, sales volume was $24 million, and in 2020, it was $63 million.
The North Shore lakefront market usually offers more affordability and entry level pricing. In 2019, the highest sale price for a lakefront on the North Shore was only $5.5 million. This number rose to $9.5 million in 2020. The lowest sale price rose 130% for a lakefront on the North Shore. In 2019, the lowest price was $1 million, compared to the lowest sale price of $2.3 million in 2020.
Other aspects of the lakefront market also matched to the way demand outweighed supply, driving the median prices higher. The average days on market dropped 34% from 154 days to only 102 days.
The sale to list price was also higher, which was a regional event. Sale prices rose from 96% of asking price to a whopping 98%. The lack of inventory and the continuing demand will see this number rise in 2021.
West Shore Lakefront Sales 2020
The West Shore Lakefront market is often skewed by dramatic, 8-figure sales activity. In any given year, one home sold can increase the sales volume significantly. For example, the highest sale price for a lakefront on the West Shore was $37 million in 2019. The highest price for a West Shore lakefront in 2020 was only $8.8 million. In March of 2021, we’ve already had an 8-digit sale on the West Shore.
The number of units sold was actually steady year over year. There was a 12% increase from 8 lakefronts sold in 2019 to 9 sold in 2020. Because of the fluctuations in sale prices, the sales volume actually dropped 42%. In 2019, the sales volume was at $88.8 million. In 2020, it dropped to $51.5 million. The sale to asking price also held steady at 97% of asking price.
Your Lakefront Specialist
We specialize in representing distinctive properties in the luxury market. Working in both the Bay Area and Lake Tahoe luxury markets gives us a decided advantage. We are connected to a feeder market of exceptional buyers and know how to market exquisite lakefront listings.
As the market continues to become more competitive, you need an agent who can keep you informed of lakefront listings before they become available. Additionally, you need a hands-on and trusted guide to negotiate on your behalf.
Contact us today for more information about the lakefront market at Lake Tahoe. Discover why the most discriminating clients choose us to represent them.