The third quarter of 2020 has been, unequivocally, the most productive ever for Tahoe Truckee real estate. The past 90 days experienced record-shattering velocity for the total number of transactions, dollar volume, and price.
The local market absorbed over 930 residential transactions during the third quarter with each month individually registering more than 300 transactions. For context, prior to this period, the highest number of residential transactions in a single month was 225.
Over this period, total dollar volume was just below $1.2 billion, a figure that exceeds every 12-month period before 2015. Again, every month over the last 90 days tallied figures greater than $300,000,000 when the previous record was $225,000,000.
By contrast, the same period in 2019 recorded $484,000,000 spread across 521 residential sales. By all previous metrics, this had been considered a very robust period.
Typical when demand overwhelms supply, pricing has similarly spiked. In Q3, median residential price rose to $802,000 representing a 25% increase over 2019 annualized figure. Average price, a figure more sensitive to activity at the market’s highest reaches, sat just below $1.2 million, nearly 30% higher than in 2019.
Other metrics showed results consistent with a bull run including days on market (57 down from 64). The average sales landed squarely at 100% of asking price with a seemingly equal number at 110% as 90%.
Inventory remains at a paltry 5 weeks supply with little indication of swelling any time soon. In fact, constrained supply appears to be the only factor dampening such results from continuing for the foreseeable future.
The conditions underlying this remarkable run have generally overridden seasonal considerations. The need for adaptation to remote work and distance learning have opened up the possibility of a healthy, mountain-based lifestyle in ways that were not possible when so much of life was restricted to urban hubs. Nevertheless, certain consumers continue to seek mountain property in a traditional sense which typically begins seeking winter accommodation around this time. While demand has not needed any boost whatsoever, mountain resort communities have begun to see winter shoppers. New product in both Northstar and Squaw Valley has piqued the interest of consumers.
The long-term sustainability of this velocity may be unlikely however the immediate prospects appear steady. For many, the new normal seems to include full or extended time residency in the mountains.