Lake Tahoe Real Estate Solutions

01/08/2022

This is a survey I'm doing for homeowners in the Truckee Tahoe area to better understand the effect of restrictions on Short Term Rentals. Please share this survey. I've tried to keep it as unbiased as possible while still asking some tough questions.

Short Term Rentals (STR) are a fiercely debated topic in Tahoe. Many people think that STR have allowed too many second home owners to buy property here and that STR rental income is the main reason for prices going up. I've always wanted to know what owners would do if suddenly they couldn't short

01/08/2022

A big shout out to the best Tire company on the planet... Stone's Tire. I bought a set of new tires from them in November and one of them blew out on 80 recently. They replaced it for free under warranty. They've done so much work for me fixing holes etc over the years, for free. I would crawl over broken glass to get to these wonderful guys.

01/08/2022

Here are 2 very interesting developments for long time local primary homeowners who are thinking of selling and moving to another area in California. The first is called Proposition 19 which was voted into Law in California in November of 2020. If you are 55 and over, or severely disabled or the victim of a wildfire, you can sell your property and apply your original sale property tax base to a replacement property anywhere in California. Prop 13 as we know, is peculiar to California and many owners forego the idea of selling their property because they think they'll be hit with higher property taxes in a replacement property. Not anymore. So you can sell your $1 million dollar home, buy another home within two years and still pay the property tax based on your original home purchase value. This doesn't apply to owners who are under 55 and doesn't apply to second home properties. It has to be your primary residence and the replacement property must be your new primary residence.

Next, the Town of Truckee is about to launch a deed restriction purchase program that any owner in Truckee can take advantage of. This would be of benefit to owners who live in primary home areas where a future buyer is likely a primary home purchaser. If you're in a second home area this isn't a good idea as it will limit your ability to sell your property to other second home buyers thus negatively affecting your property's value. Remember that only 30% of last year's buyers in Truckee were primary home buyers.

But if your property is most likely going to sell to another primary home purchaser this is a way to get some extra cash and limit your property to primary home owners only in the future.

For more information on Proposition 19 click the link below.

Proposition 19 the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. The mission of the State Board of Equalization is to serve the public through fair, effective, and efficient tax administration

01/07/2022

A tale of two markets. This really blew my mind so please keep reading. Going through the market today I noticed a home that sold on Brookstone in Tahoe Donner. It's a simple home, built in 96, 1738 square feet, 3 bed, 2.5 bath, 2 car on .3 of an acre. It listed for $899,000 in December and closed for... get this...$1,150,000, 27% over asking.

Now the story gets crazy. This same home was listed 23 months ago in January 2020 for $690,000. It sat on the market for a while and had a price reduction to $675,000 and then finally sold for $660,000 in April 2020. In 23 months this home appreciated 74%!!

This home might be the poster child for what's happening to entry level housing in Tahoe. Entry level homes are in short supply and people are scrambling. If you are thinking of buying or selling please get in touch with me and get an edge on the market.

01/06/2022

Here's a great article from our office on why selling a property in winter is a good idea. Basically the ratio of serious buyers to sellers is much better. There is very little inventory at the moment which is great for sellers providing them with less competition.
https://www.sierrasothebysrealty.com/blog/2021/12/listing-your-home-in-winter/?utm_campaign=sierra-insider-january-2022-%28quick-send%29&utm_content=12-reasons-to-sell-in-winter&utm_medium=email&utm_source=activepipe
https://www.sierrasothebysrealty.com/blog/2021/12/listing-your-home-in-winter/?utm_campaign=sierra-insider-january-2022-%28quick-send%29&utm_content=12-reasons-to-sell-in-winter&utm_medium=email&utm_source=activepipe

“Listing your home in the winter may offer a better opportunity for a stronger sale.” While winter is not considered the traditional home selling season in most areas, Lake Tahoe’s seasons are what draw many buyers to the area. With recent record snowfall, ski resorts are in full swing up for ...

01/03/2022

10 Reasons why it's not too late to get into the Lake Tahoe and Truckee Real Estate Market in 2022.

1) New development is extremely limited, choking supply. Government agencies will only approve smaller projects focused on affordable housing. There will be no more luxury developments.
2) Tahoe is a 4 season area and people love it. Some resort areas are just one season only focusing on skiing or warm winter water. Tahoe has 4 glorious seasons to enjoy the outdoors. You have world class skiing in the winter and water activities in the summer. It's never too hot or cold.
3)Owners love their homes. Often a family's Lake Tahoe home becomes the magnet to keep kids and grandkids coming back to experience the beauty and stimulating outdoor activities. Owner's tend to hang onto their homes for more than 16 years.
4)The beauty is breathtaking. This might be the most beautiful pristine place on the planet.
5)It's easy to get here. There are many direct flights into Reno Tahoe International, just 45 mins to Lake Tahoe. You can fly direct from Chicago and New York. Truckee has an airport allowing private jets. Tahoe is a 3.5 hour drive from San Francisco.
6) Owners are affluent. Most owners have 50% or more equity in their second homes here and are not over leveraged. If there is a downturn it will not trigger an avalanche of home sales.
7) There will always be a strong desire to live here. People dream of leaving the city to live here.
8) The internet will continue to increase work mobility. This is a powerful trend that is allowing people to work anywhere in the world. Truckee is even now known as "Zoom Town".
9) Increasing interest rates will not curb demand to live here. It will shift some buyers to look at homes down market.
10) Silicon Valley which is only 3 hours away will continue to produce more millionaires and they buy homes in Tahoe. Business exit events and the stock market are what drive purchases not interest rates.

01/01/2022

Lake Tahoe and Truckee is an affluent second home market. This means that buyers don't have to buy and sellers don't have to sell. Even if there is a downturn in our market it won't mean that sellers will run for the hills. We are the hills where people dream of living. And thanks to the internet, people can now work at home here. Think about it. If you had to give up a home in paradise compared to hustle of the city, which one would you give up? This is why the lure Tahoe is so strong and is why the demand to live here will last forever.

12/31/2021

I call my FB business page Lake Tahoe Real Estate Solutions because that's essentially what I provide. Innovative solutions for buyers and sellers alike. What are these solutions? I'm the first one to admit there are literally hundreds of agents here chasing about 1,500 transactions per year. To be successful, you need an edge and my edge is data. Not just market statistics but using data to find new potential sellers and buyers. We are in an environment with very little selection for buyers. My solution for buyers is to pinpoint where they want to live, what their needs are in a home and then to find potential sellers who meet that criteria. That's why you want to work with me as a buyer in this competitive market. For sellers it's the opposite. When you list with me you can get your property in front of affluent buyers and their social media pages. At Sotheby's we go way beyond the MLS to market your property. And with me, I take it a step further using data to get your property in front of the audience that matters. What is that audience you ask? It's 9.5K profiles that own property with over $5M in equity. That's one amazing audience. If you are thinking of buying or selling please do get in touch with me and get an edge on the market. - Nick

12/31/2021

During the holidays I was able to dig into data in our local housing market with some amazing new tools. There's no question that demand for Tahoe Real Estate is strong with the primary reason that it's simply an awesome place to live. So beautiful. The internet has allowed many people to work in Tahoe, connecting to their world wide teams from anywhere which is why Truckee is also known as "Zoom Town" and is causing the local housing crisis. There is virtually no appetite in any government agency here to create large developments. Despite ample room, there will never be another Tahoe Donner, or Martis Camp. There are pockets of smaller developments on the table for affordable housing and any new land inventory will cater to this need. Essentially, the housing supply here is locked and that will cause prices to increase. These are powerful market forces which will unfortunately continue to squeeze out the local work force over the coming decades. This is unfortunate because it creates a massive imbalance in the local workforce. Businesses are struggling to find labor who can afford to live and grow here.

12/31/2021

Here is a look at who bought single family homes in the Truckee 96161 zip code area in 2021.

1) 824 single family homes transferred out of 24978 homes.
2) 32% owner occupied, 5% in county, 57% in California, 6% from out of state, so 68% are second home buyers.
3) Average length of prior ownership is 16 years. People hold onto their properties here it would seem which explains low inventory.
4) Average value per square foot is $659
5) Average transaction price is approximately $2M USD.
6) Average equity in the property is 50%
7) Average buyer age is 54.
8) 55% of buyers are married 45% single.
9) 89% do not have children living full time at the residence.
10) 81% have net worth over $500K with 31% incomes over $250K.

Source: Property Radar as of December 31 2021. Click on the photos for graphs and data.

12/31/2021

Here is an interesting heat map of Lake Tahoe and the surrounding area. The blue sections represent properties that have been owned for 15 years or more which are most properties on the map. Notice the sprawl and development in the Sacramento/Auburn area to the left and in Reno NV to the right then compare that with the Tahoe/Truckee area in the center. You can see that development is relatively limited in the Lake Tahoe area and this is why prices will continue to climb.

12/31/2021

I'm thrilled to announce that I've joined Sierra Sotheby's International Realty in Truckee California. After seeing the marketing systems and what they can offer clients it's simply mind blowing. It's no wonder they are a market leader with 8 offices in the Lake Tahoe area. If you are interested in the Lake Tahoe Real Estate Market, please visit my website below at Sierra Sotheby's. Sharing is caring!

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