This four-bedroom house in Truckee, California, near Lake Tahoe, was launched for $ 1.65 million and sold for $ 2 million less than 24 hours later.
Overall and Hamilton
Real estate in Lake Tahoe is snapped up at a record pace as San Francisco technicians flee the city in search of more space and a healthier lifestyle.
A new wave of city flights is changing real estate markets from New York to Chicago and from Los Angeles to San Francisco. As part of this shift, Lake Tahoe is experiencing unprecedented bidding wars, buying activity, and price increases. Realtors say the inventory of houses for sale has shrunk to about a fifth to a tenth of the usual level.
"People write cash deals for houses you can't see," said Sabrina Belleci, a Lake Tahoe broker at Re / Max. "They just want to leave town."
Lake Tahoe has long been an idyllic haven for Californians looking for a short break and lower taxes on the Nevada side. However, according to brokers, the recent increase in purchases is greater than ever on the market. They say Bay Area technicians and investors, as well as media types, are coming to the Tahoe area from Los Angeles for larger homes with home offices, more land for the kids to play, and access to outdoor activities like swimming and cycling.
The flight out of the city continued again this week after Google announced it would leave the workers at home by July 2021. Private schools in the Bay Area recently announced that they will likely switch to all online classes in the fall, giving families another reason to stay outside of San Francisco.
"Buyers say there's no reason for me to be in town," said Breck Overall, an agent at Sierra Sotheby & # 39; s International Realty.
Historically, selling real estate in the Tahoe region took three to four months, Overall said. Now it's more like four days. Real estate often has between six and twelve offers after they hit the market, he said, adding that many sell well above the asking price.
A property was recently launched at a price of $ 1.65 million. The company is located in downtown Truckee, California on the Truckee River and was contracted less than 24 hours later and closed for $ 2 million.
This three bedroom house in Truckee was listed for $ 670,000 and sold quickly for $ 70,000 more than the asking price.
Sierra Sotheby & # 39; s Int Realty
The holiday community Tahoe Donner usually has between 80 and 120 houses on the market, Overall said. Now there are only about a dozen left.
Almost all businesses are cash, with little or no contingent liabilities. Overall, it says that buyers who need funding have little chance of getting a home because sellers prefer quick, cashless deals.
"I think it created a new market here," he said.
And the numbers show no signs of slowing down. Sierra Sotheby’s Kaili Sanchez said the company's outstanding sales for the Tahoe region in June were $ 191 million, compared to $ 72 million a year earlier.
July will be even better, with $ 129 million in outstanding sales between July 1 and July 15 – more than three times the previous year. She said while families have long seen Tahoe as a vacation rental market, many families are now planning to stay longer.
"They are now buying for their primary residence," she said. "Maybe it's for a year, maybe longer. But they want to be outside."
With so few houses for sale, many buyers have started buying up empty land and building a house. Local builders and architects say waiting lists for their services are getting longer. Realtors have also started knocking on doors in hopes of persuading the owners to list their homes.
"People who might have sold in a typical season keep their houses because they want accommodation," said Belleci. "The inventory reaches the point where we run out of houses to sell. It's very limited."