Truckee/Tahoe Luxury Trends - 1st Quarter 2022

Luxury Trends 1st Quarter 2022 Tahoe/Truckee Market Report

uESCROWuINuONEuWEEK! 40,000 over asking price

11602 Bennett Flat Road $2,495,000 Tahoe Donner DicksonLuxury.com

WELCOME TO OUR 1ST QUARTER 2022

COVER PROPERTY FEATURED

11602 BENNETT FLAT ROAD TAHOE DONNER

LUXURY HOME MARKET REPORT

It’s hard to believe that it’s now two years since our world seemingly turned upside down with COVID. Many lives were lost, many lives were disrupted, and many questioned over the ensuing weeks and months how life could move on from this pandemic.

As mentioned in earlier reports, those of us in the real estate world saw an unprecedented influx of buyers come to the Truckee-Tahoe area, seeking an environment that provided for a slower lifestyle in our beautiful Sierra Nevada mountains. The magnitude of buyers entering our markets caused a shortage of available inventory which continues to this day. During the first quarter of 2021, 231 homes listed at $1M+ came on the market whereas during the first quarter of this year, only 187 homes were listed. Pre-pandemic levels were quite a bit lower, with only 110 homes being listed in the first quarter of 2020. The average price for homes at $1M+ in the first quarter of this year was $2,642,420, a 26% increase over the same period in 2020, pre-pandemic, when the average price was $2,102,906.

Average sales prices were up just 7% this quarter versus one year ago, although the average cost per square foot increased by 12%, a further indication of issues with supply shortages, increased supply costs as well as labor costs.

In the Town of Truckee, we are told that building permits are taking up to 6+ months to obtain, mostly due to staff shortages.

Our team of Dickson Realty Luxury Specialists are here, as always, to provide you with competent expertise in this market area. We will work hard for you to achieve the most positive outcome whether you are buying or selling. And we look for 2022 to be another extraordinary year!

—Broker/Manager, Dickson Realty Truckee

Luxury Home Averages Over $1 Million January - March 2022 compared to January - March 2021

-2%

+7%

+12%

-23%

TOTAL UNITS SOLD

AVERAGE SOLD PRICE

AVERAGE PRICE PER SF

AVERAGE DAYS ON MARKET

2022: 147 2021: 150

2022: $2,858,268 2021: $2,667,143

2022: $972 2021: $870

2022: 47 2021: 61

Data Source: Tahoe Sierra Multiple Listing Service (TSMLS) as of April 12th, 2022

Luxury Home Sales over $1 Million Truckee NUMBER OF SALES

Palisades Tahoe NUMBER OF SALES

96

AVERAGE SALES $

$2,994,312

AVERAGE SALES $

HIGHEST SALE $

$13,000,000

HIGHEST SALE $

North Shore, Lake Tahoe, CA NUMBER OF SALES AVERAGE SALES $ HIGHEST SALE $

NUMBER OF SALES AVERAGE SALES $

$23,650,000

HIGHEST SALE $

Sold Listings Over $1 Million 12%

13%

$1,898,071 $4,200,000

$1,000,000– $1,999,999

38%

$3,000,000– $4,999,999

25%

$2,000,000$2,999,999

14%

14

$5,000,000 and higher

14%

$5,950,000

Active Listings Over $1 Million

$5,000,000 and higher $3,000,000– $4,999,999

$2,513,953

West Shore, Lake Tahoe, CA

17 $3,157,117

11

$1,000,000– $1,999,999

$2,000,000$2,999,999

60% $1,000,000– 89 Sold Listings $1,999,999 $1,441,570 Average Price

$1,000,000– 28 Active Listings $1,999,999 $1,508,571 Average Price

$2,000,000– 21 Sold Listings $2,999,999 $2,504,963 Average Price

$2,000,000– 18Active Listings $2,999,999 $2,434,611 Average Price

$3,000,000– 20 Sold Listings $4,999,999 $3,801,075 Average Price

$3,000,000– 19 Active Listings $4,999,999 $3,905,500 Average Price

$5,000,000 17 Sold Listings and higher $9,602,352 Average Price

$5,000,000 10 Active Listings and higher $11,710,900 Average Price

42 Average Days On Market

56 Average Days On Market

63 Average Days On Market

61 Average Days On Market

24%

69 Average Days On Market

31 Average Days On Market

72 Average Days On Market

149 Average Days On Market

Data Source: Tahoe Sierra Multiple Listing Service (TSMLS) as of April 12th, 2022

Recent Dickson Sales

$4,190,000

Seller Representation by Dickson Realty

$2,750,000

Buyer Representation by Dickson Realty

$2,210,000

Buyer Representation by Dickson Realty

$3,100,000

Donner Lake

Seller Representation by Dickson Realty

Tahoe Donner

Seller Representation by Dickson Realty

Tahoe Donner

Buyer Representation by Dickson Realty

$2,510,000

$2,200,000

Lahontan

Tahoe Donner

Tahoe Donner

Recent Dickson Sales

$2,155,000

Seller Representation by Dickson Realty

$1,945,000

Tahoe Donner

$2,000,000

Buyer & Seller Representation by Dickson Realty

$1,625,000

Northstar

Buyer Representation by Dickson Realty

Seller Representation by Dickson Realty Truckee Business Park

Buyer Representation by Dickson Realty

Buyer & Seller Representation by Dickson Realty

$1,600,000

$1,575,000

Tahoe Donner

Tahoe Donner

Tahoe Donner

Recent Dickson Sales

$1,535,000

Seller Representation by Dickson Realty

$1,485000

Buyer Representation by Dickson Realty

$1,425,000

Seller Representation by Dickson Realty

Grays Crossing

$1,500,000

Seller Representation by Dickson Realty

Northstar

$1,455,000

Tahoe Donner

Buyer & Seller Representation by Dickson Realty Prosser Heights

Tahoe Donner

Seller Representation by Dickson Realty

$1,400,000

Tahoe Donner

Recent Dickson Sales

$1,400,000

Buyer & Seller Representation by Dickson Realty

$1,375,000

Buyer Representation by Dickson Realty

$1,325,000

Seller Representation by Dickson Realty

Northstar

Tahoe Donner

Tahoe Donner

$1,395,000

Buyer Representation by Dickson Realty

$1,375,000

Buyer Representation by Dickson Realty

$1,315,000

Seller Representation by Dickson Realty

Tahoe Donner

Glenshire

Tahoe Donner

Recent Dickson Sales

$1,300,000

Buyer Representation by Dickson Realty

$1,300,000

Seller Representation by Dickson Realty

$1,250,000

Seller Representation by Dickson Realty

Northstar

Tahoe Donner

Prosser Lakeview

$1,300,000

Seller Representation by Dickson Realty

$1,258,000

Seller Representation by Dickson Realty

$1,250,000

Buyer & Seller Representation by Dickson Realty

Northstar

Tahoe Donner

Donner Lake

Current Luxury Listings In Escrow

$7,000,000

Rue Ivy MLS# 20202885

Truckee

$2,495,000

11602 Bennet Flat Road MLS# 20220615

Tahoe Donner

In Escrow

$1,995,000

12326 Greenleaf Way MLS# 20220410

Tahoe Donner

In Escrow

$1,475,000

11747 Kitzbuhel Road MLS# 20220407

14666 Christie Lane MLS# 20220580

Glenshire Drive MLS# 20220005

Glenshire

In Escrow

Tahoe Donner

In Escrow

$1,200,000

$1,800,000

$1,300,000

14657 Tyrol Road MLS# 20220406

Tahoe Donner

In Escrow

Tahoe Donner

$1,050,000

15623 Glenshire Drive MLS# 20220206

Glenshire

Old Greenwood

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$1,903,750

-12.4%

$2,172,500

FROM LAST YEAR

MEDIAN PRICE

$1,675,000

-22.9%

$2,172,500

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

+367% FROM LAST YEAR

UNITS SOLD

+100% FROM LAST YEAR

14

3

DAYS ON MARKET

4 UNITS SOLD

2

Gray’s Crossing

January- March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$2,676,440

+33.6%

$2,002,933

FROM LAST YEAR

MEDIAN PRICE

$2,700,000

+35.8%

$1,988,800

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

-56%

FROM LAST YEAR

UNITS SOLD

+67%

FROM LAST YEAR

17

39

DAYS ON MARKET

5

UNITS SOLD

3

Lahontan

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price AVERAGE $

2022 2018 2021

AVERAGE PRICE

+16.6%

$3,835,169 $3,288,333

FROM LAST YEAR

MEDIAN $

MEDIAN PRICE

+18.2%

$3,725,000 $3,152,500

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

+6%

FROM LAST YEAR

UNITS SOLD

+50% FROM LAST YEAR

57

54

DAYS ON MARKET

9 UNITS SOLD

6

Schaffer’s Mill

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price AVERAGE $

2022 2018 2021

AVERAGE PRICE

+24.5%

$2,398,800 $1,927,083

FROM LAST YEAR

MEDIAN $

MEDIAN PRICE

+9.8%

$2,050,000 $1,866,750

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

+138% FROM LAST YEAR

UNITS SOLD

-17%

FROM LAST YEAR

88

37

DAYS ON MARKET

5 UNITS SOLD

6

Martis Camp

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$9,861,666

+45.9%

$6,758,333

FROM LAST YEAR

MEDIAN PRICE

$10,435,000

+85.9%

$5,612,500

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

-4%

FROM LAST YEAR

UNITS SOLD

-33% FROM LAST YEAR

51

53

DAYS ON MARKET

12 UNITS SOLD

18

Northstar

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$1,979,714

-15.2%

$2,335,221

FROM LAST YEAR

MEDIAN PRICE

$1,522,500

-21%

$1,964,169

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

-34%

FROM LAST YEAR

UNITS SOLD

-13%

FROM LAST YEAR

72

109

DAYS ON MARKET

14

16

UNITS SOLD

Palisades Tahoe

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$2,513,953

+28.2%

$1,960,890

FROM LAST YEAR

MEDIAN PRICE

$2,207,500

+26.4%

$1,747,000

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

-26%

FROM LAST YEAR

UNITS SOLD

-8%

FROM LAST YEAR

77

104

DAYS ON MARKET

11 UNITS SOLD

12

Lake Tahoe – North Shore

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$3,157,117

+74.3%

$1,811,032

FROM LAST YEAR

MEDIAN PRICE

$1,690,000

+4.3%

$1,620,000

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

-20%

FROM LAST YEAR

UNITS SOLD

-26%

FROM LAST YEAR

44

55

DAYS ON MARKET

17

23

UNITS SOLD

Lake Tahoe – West Shore

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$1,898,071

-45.2%

$3,463,250

FROM LAST YEAR

MEDIAN PRICE

$1,541,000

-7.9%

$1,672,500

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

-40% FROM LAST YEAR

UNITS SOLD

-30%

FROM LAST YEAR

50

84

DAYS ON MARKET

14

20

UNITS SOLD

Tahoe Donner

January-March 2022 vs. 2021 Average vs. Median Average vs. Median Price

MEDIAN $

AVERAGE $

2022

2021

AVERAGE PRICE

$1,579,802

+21.3%

$1,302,802

FROM LAST YEAR

MEDIAN PRICE

$1,375,000

+6.8%

$1,287,500

FROM LAST YEAR

Average Days on Market vs. Units Sold 2022

2021

DAYS ON MARKET

+22%

FROM LAST YEAR

UNITS SOLD

+41%

FROM LAST YEAR

22

18

DAYS ON MARKET

31

22

UNITS SOLD

Buyer Trends in 2022

Welcome in a New Class of Entry-level Luxury Buyers Across the full spectrum of affluent consumers, there is greater interest in purchasing real estate under USD $1 million. This signals a resurgence of upper-middle class buyers either those who were delayed in purchasing last year, or who are now willing and able to acquire. Consequently, this is creating a modest increase in the number of entry-level luxury buyers, up to 44 percent from 39 percent in the USD $1–1.9MM range. All told, the year-on-year budget level is stable within luxury, at a median price of USD $2.25 million.

This democratic luxury-for-the-many effect is most pronounced in North America and less so in Asia Pacific and Europe/Middle East, where the wealthy class tends to skew toward relatively small groups of people with very high concentrations of wealth.

Price Range for Next Home | In the Market Next Three Years TOTAL AFFLUENT

LUXURY BUYERS

2021 SURVEY

2022 SURVEY

2021 SURVEY

2022 SURVEY

ASIA PACIFIC

NORTH AMERICA

EUROPE/ MIDDLE EAST

Under USD $500K

11%

19%

—

—

—

—

—

$500K under $999K

23%

34%

—

—

—

—

—

$1MM to $1.9MM

26%

21%

39%

44%

39%

57%

37%

$2MM to $2.9MM

15%

8%

23%

18%

22%

11%

21%

$3MM to $4.9MM

11%

6%

17%

12%

15%

10%

12%

$5MM to $9.9MM

10%

8%

15%

17%

14%

14%

24%

$10MM or more

5%

4%

7%

8%

10%

8%

7%

Average

2.6MM

2.2MM

3.6MM

3.8MM

3.8MM

3.4MM

4.1MM

Median

1.75MM $1.25MM 2.25MM 2.25MM

2.25MM

1.75MM

2.25MM

Average square feet3

—

2,973

—

3,670

3,427

3,904

3,710

Average price per sf4

—

$420

—

$613

$657

$448

$606

3 4

sked in categories in both square feet and square meters. Median values between categories used to calculate average size.

A Average price per square foot is calculated as median price point divided by median square feet

© 2022 Luxury Portfolio International. ® All rights reserved. Unauthorized use of this members-only document is prohibited.

Buyer Trends in 2022

Single-family Homes Surge in Popularity The thoroughly North American single-family home is branching out across the globe, as 40 percent of Europe/Middle East buyers and 29 percent of Asia-Pacific buyers are seeking the luxury of additional space and privacy. Year on year, demand for this type of housing is increasing as, collectively, shared living spaces are becoming less attractive to the luxury buyer. North America remains the top driver for demand of this type of residence.

Type of Residence Expect to Buy | LUXURY BUYERS

Buyer Insight: Space makes the difference these days.

Space from neighbors, space in the home, and space outside.

Percent Selected, Global g 2021 SURVEY g 2022 SURVEY

37% 44%

17% 17%

18% 17%

18% 16%

10% 7%

SINGLE-FAMILY HOME

CONDO/ APARTMENT

TOWNHOUSE

HIGH-RISE PENTHOUSE

HOTEL RESORT RESIDENCE

7% Percent Selected, by Region g SINGLE-FAMILY HOME g CONDO/APT g TOWNHOUSE g PENTHOUSE g HOTEL/RESORT RESIDENCE

20% 23% 20%

10% 11% 11%

5% 17% 15% 19%

62%

29% ASIA PACIFIC

8%

NORTH AMERICA

© 2022 Luxury Portfolio International. ® All rights reserved. Unauthorized use of this members-only document is prohibited.

40% EUROPE/MIDDLE EAST

Buyer Trends in 2022

Buyer Insight: The trend toward a sustainable home is strongest with the luxury buyer, however non-luxury buyers are also invested in this concept. The fact that affluent consumers globally are leaning into the trend suggests it will be with us for the long haul.

What are Your Views On Environmental Sustainability? | LUXURY BUYERS

Percent Selected, Sustainability Actions Are…

Percent Selected, Willing To Pay...

For Sustainability Features I Care About g g g g

g CRITICALLY IMPORTANT g GOOD BUT DO NOT NEED MAJOR CHANGES

g NOT NECESSARY AT ALL g NOT SURE

PAY MORE

PAY LESS PAY THE SAME NOT SURE

3%

2% 9% 36%

23% 66%

50% 11%

Sustainability: Critically Important and Worth Paying to Get Luxury home buyers demonstrate their commitment to environmental sustainability in their opinions and actions. Nearly 90 percent believe taking steps toward sustainability is worth doing, and 50 percent are willing to pay more for the features they care about. This trend is evident in residential real estate as well as other luxury durables like automobiles, electronics, and apparel. Even luxury consumables like travel, food and beverage, and services are working hard at doing good while also being good.

© 2022 Luxury Portfolio International. ® All rights reserved. Unauthorized use of this members-only document is prohibited.

Buyer Trends in 2022

Sustainable Home Design Elements Favor Technology, Materials Smart home automation and related technologies, efficient designs, appliances and building materials are the most in-demand aspects of sustainable home design. This speaks to not only the foundational elements of the home, but also the design sensibility toward technology and efficiency. Buyers from Asia Pacific show a higher-thanusual interest in Solar panels, and the use of non-toxic materials in the home. North America leans toward organic living, that is having a vegetable garden or orchard and composting on property. In Europe/Middle East, the luxury buyer is interested in locally sourced materials whenever possible. While this speaks specifically to design elements, the sense is that it would also pertain to art and style elements as well.

Which of These Sustainable Home Design Elements, if any, are Essential in Your Next Residence? | LUXURY BUYERS

g SMART HOME AUTOMATION g ORGANIC LIVING

g ENERGY EFFICIENT APPLIANCES g LOCAL MATERIALS

73% 70% 43% 38% 36% 32% LUXURY BUYERS

g NON-TOXIC MATERIALS g SOLAR PANELS

79% 72% 47% 39% 36% 36% ASIA PACIFIC

72% 72% 39% 38% 30% 31%

65% 65% 42% 37% 43% 28%

NORTH AMERICA

EUROPE/MIDDLE EAST

© 2022 Luxury Portfolio International. ® All rights reserved. Unauthorized use of this members-only document is prohibited.

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®

INDUSTRYLEADING SALES. WORLD-CLASS SERVICE.

MORE U.S. HOME SALES VOLUME

THAN ANY OTHER REAL ESTATE NETWORK, FRANCHISE OR BROKERAGE BRAND. $296 BILLION IN U.S. HOME SALES VOLUME. As an affiliate of Leading Real Estate Companies of the World,® Dickson Realty is a local and global market leader working on your behalf. LeadingRE’s world-class marketing resources and connections allow us to provide you with a truly exceptional real estate experience. ®

$296 Leading Real Estate Companies of the World

1.3 MILLION

$260

GLOBAL TRANSACTIONS

$207

550

$152

Leading Real Estate Companies of the World®

COMPANIES $110

4,600

Keller Williams

OFFICES

$97

150,000

$96

Compass

$72

Berkshire Hathaway HomeServices

SALES ASSOCIATES

70

Coldwell Banker

Sotheby’s International Realty

$37

COUNTRIES

RE/MAX eXp Realty

$29

Redfin

$29

Century 21 Douglas Elliman

$23

Homesmart

$20

Corcoran Better Homes and Gardens

$11

ERA $11 $0 © 2021 Leading Real Estate Companies of the World.® All Rights Reserved.

C–Sales Volume. 05.21

Equal Housing Opportunity.

$50

$100

$150

$200

Volume shown in billions of dollars.

This bar chart is sourced from REAL Trends 500 for 2020, realtrends.com.

$250

$300

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DAMONTE RANCH TRUCKEE MONTRÊUX

NORTHSTAR INCLINE VILLAGE

LAKE TAHOE

N

11836 DONNER PASS ROAD, TRUCKEE 100 NORTHSTAR DRIVE, TRUCKEE 289 COMMERCIAL STREET, PORTOLA

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© 2022 Dickson Realty. NV Lic #B.0019733. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy.

If your property is currently listed for sale, this is not intended to be a solicitation.