Snow daze in Lake Tahoe as first quarter home sales fall dramatically

Snow is usually a positive for the Lake Tahoe market, especially after years of warmer winters. But this year agents say they’ve had too much of a good thing as record snowfall contributed to a precipitous drop in volume — down by 75 percent in some areas. 

Buyers have been unable to make the drive out to house hunt, according to Susan Lowe, president of Reno-based Chase International Real Estate, because of the many road closures and blizzard warnings. The same weather issues have made it more difficult for sellers to prep their homes for sale, she said via email. 

Overall, Lake Tahoe sales volume is down 65 percent for single-family homes in the first quarter of 2023 compared to one year earlier, according to Chase International data. Condo sales are down by more than half. 

Specific submarkets around the lake have seen even bigger drops. The East Shore is down by two-thirds for single-families and condos, and single-family volume in Incline Village and condos in Tahoe Donner are each down by three-quarters.

Tahoe Donner and north-facing areas of Tahoe Vista have been hit particularly hard by the storms and below-freezing temperatures that have not allowed much thawing, North Lake-based Compass agent Nicole Blair said via email. With 20-foot-high snow berms, these homes are much harder for buyers to view, bringing down the number of sales and listings on the market. 

In response, agents have flexed their creativity to show properties during the relentless storms. Chase realtor Brinn Talbot said via email that she has used Google Earth to help buyers “visualize what properties look like in a normal season at this time of year given the unprecedented winter we have had in the Lake Tahoe region.” 

The weather has made buyers realize how much maintenance is involved in owning a single-family home during a heavy snow year, which has given condo sales a boost, according to Blair. 

“Ski in and ski out condos at Palisades or Northstar have been a hot commodity this winter,” she said. “This was one of the first years where homeowners really had to stay on top of snow removal or face potential damage to their home. With a condo, the HOA takes care of the snow removal so it’s a non-issue.”

Condo values were up in many submarkets, according to the Chase International data, especially Truckee where it skyrocketed 40 percent year-over-year, compared with a 14 percent drop in single-family prices. Property on Lake Tahoe’s West and North shores saw a 26 percent decrease in home values and a 14 percent increase in the average price for condominiums.

Lowe believes the condo market uptick is more connected to cost than weather. The average single-family home price overall in Lake Tahoe, even with the recent decrease, is $1.26 million, compared with $965,000 for a condo.

All the agents said they expect buyer enthusiasm to return for all home types after the thaw. With no snow in the immediate forecast, Lowe said buyers are already coming back to the market. 

“There is much pent-up demand and we are experiencing multiple offers on the listings that are coming to market,” she said. 

Blair said that some sellers have been anxious to get buyers in as soon as their driveways are plowed, while others are content to wait for the big melt. Even if there is a considerable thaw throughout April, she said, “it’ll take a few months for homeowners to see their yards again and anyone that has put money into landscaping will want to wait until the snow is gone to highlight any exterior work they have done to their homes.” 

When the snow is gone, buyers and sellers will still be thinking about it, Talbot said. Whether it is seen as a positive or negative is up to the individual.

“We expect both buyers and sellers to increase, with some moving here because of the great snow and some selling to move out of snow country,” she said.