CHASE INTERNATIONAL REAL ESTATE REPORT DOCUMENTS MARKET COOL DOWN AMID RECORD-BREAKING WINTER WHILE HOMEOWNER VALUES REMAIN STRONG
Chase International Real Estate released its First Quarter Real Estate Market Report, comparing all homes sales in the Lake Tahoe and Reno, Sparks and Northern Nevada markets, from January through March 2023 to the same timeframe in 2022.
The report showed lower overall volume in both sales and available units for sale. Still, year over year, there is consistent value growth for homeowners throughout the Northern Nevada and California markets.
“Our region has experienced record-breaking snowfall and precipitation totals, which has contributed to the lower-than-expected sales in the first quarter,” said Susan Lowe, President/Corporate Broker for Chase International. “However, there are still plenty of bright spots. According to the National Association of Realtors, existing homes sales jumped 14.5% in February nationally. Our region’s extreme winter prevented buyers from viewing homes, but once the weather cooperated, we began seeing a strong pipeline of buyers. Extremely low inventory is contributing to fewer sales. We are very optimistic for the second quarter of 2023 as we are fielding more seller and buyer inquiries.”
Despite market cool down, average prices remain up compared to pre-pandemic statistics
After two record-breaking years of higher volume and twice the activity compared to pre-pandemic years, real estate as an asset shows a consistent increase in value and remains the single largest contribution to household wealth. Compared to pre-pandemic figures from the end of 2019, the average price in Lake Tahoe is up 21% and up 34% for the Reno/Sparks area.
“These statistics document our clients’ perspective on buying a home in today’s market. They are investing in real estate as part of their long-term wealth strategy, in addition to their new choices for lifestyle and well-being,” said Lowe.
As market settles, sales volume slows and condo values increase
Referring to the home sales on Lake Tahoe’s Nevada side, Lowe noted a 75% decrease on average for the East Shore with home values increasing 14% and condominiums increasing 21% on average. On the North Shore, Incline Village recorded a 76% decrease in single-home volume, while the value of homes and condominiums decreased 33% and condominiums increased by 24%.
Lake Tahoe’s California real estate showed similar trends. The South Lake Tahoe market saw a 53% decrease in volume, and no change in average home prices, as well as an 8% increase in value for condominiums. Property on Lake Tahoe’s West and North Shore volume mirrored the region’s activity with a 69% drop in volume, a 26% decrease in home value and a 14% increase in the average price for condominiums.
In Truckee, Calif., the single-family home average price dropped 14% for single family residences and was up a whopping 40% for condominiums.
In Reno and Sparks. Nev., the decrease in average price was less with the combined average volume down 9%. Further south, Carson City experienced a 5% decrease and the bourgeoning Carson Valley documented a decrease in average price at 7%.
Following a 2022 partnership with Lake Almanor Brokers, Chase International is now in the Lake Almanor region. Called the “affordable Lake Tahoe,” this recreational mecca’s average price was up 24%.
For a complete analysis of Chase International’s 2023 first quarter review of the real estate market in Northern Nevada and California, visit Chase International/Market-Report.