The conversations I’ve been having for the past few weeks with people regarding the future state of the Truckee-Tahoe market has been one of optimism. Despite the pandemic ravaging our economy and shaking consumer confidence in the real estate market, I’m confident that there are enough factors that will not just stabilize the Truckee-Tahoe market but allow it to appreciate. And here’s why:
1. Location, Location, Location: Tahoe. It’s fundamentally true – this area is one of the most beautiful places on Earth and no matter the state of the market there is always strong interest in living here for the outdoor and wellness minded lifestyle – even if it’s just for a few weeks each year. Tahoe is a refuge for most of its home buyers and will continue to be.
2. The Bay Area Isn’t What It Used To Be. I know because it wasn’t long ago that I was one of those people, surviving the Bay Area and dealing with those same stressors. As the years go by, more and more people are getting fed up of paying exuberant taxes and being forced into mind-numbing commutes everyday. I’ve noticed this trend in seeking a better quality of life and now more people are opting to make Tahoe their full time home. Reason #3 is what makes this decision to leave that much more easier to undertake. Check out SF Gate’s article on this phenomenon HERE.
3. Working From Home is Getting Easier. Telecommuting used to be a luxury but it’s now becoming the norm. From the major tech companies to small startups, employers are quickly loosening up the WFH regulations. Truckee already has a strong remote workforce and is continuously building a better infrastructure for this community including professional groups and co-working spaces. In Truckee in particular, I witnessed that most of my clients opted to shelter in place in their second homes in Tahoe. For them, getting away from the crowded urban centers and being in a place that was less populated is now quickly becoming a lifestyle they want to adopt full time.
4. It’s Worth The Money. With a 30 year fixed running around 3.56% now is still a great time to leverage these historically low rates to finance your mountain dream home. If you want to examine the numbers further, take a look at my Guide to Investment Properties In Truckee-Tahoe, including a customized calculator and overview of each communities HOA dues, membership fees and taxes.
What does all this mean? Simple. Increased demand is coming for a limited supply of inventory. Truckee-Tahoe real estate is going to become that much more valuable in the very near future, both in the primary and premium markets.
As I noted in the last MARKET UPDATE the market shows no sign of distress and indicated no price erosion. Once shelter in place is lifted throughout California my gut tells me that prospective Buyers will be rushing up to Tahoe to secure the home in the mountains.