With another aggressive real estate market year behind us, we reflect on 2021 Truckee and North Lake Tahoe real estate. Prices were driven up 30% in 2021, compared to 2020 – even with reductions in sales volume – due to lack of available listings. Intense buyer demand contributed to the propelling of the median sales price in 2021 to $1,772,063 compared to the median sales price in 2020 of $1,294,023.
Though national projections predicted the rise of interest rates to cause a moderate slow down in the market, we saw the opposite in our Truckee and Tahoe region. With not enough listings to satisfy buyer demand, the market was driven by aggressive buyers; many of which were able to offer cash, above asking price.
Even with less inventory in 2021 than 2020, the total dollar volume, median home price, and sales volume within the luxury market increased. The total sales volume in 2021 was over $2.2B, a 13% increase from 2020, and a record for our area, compared to $2.0B in 2020.
There have been a handful of years where our region has seen sales volume over $2B. Similar to 2020, 2021 was fueled by a continuing pandemic and the desire for new primary or secondary residences, with listings feverishly pursued upon hitting the market.
Looking forward to our 2022 real estate market, inventory remains fiercely competitive while the median price is expected to continue to rise. Following trends, year over year from 2020 to 2021, we can expect much of the same in 2022. Even with interest rates rising, buyers will continue to produce cash offers and with less inventory than ever, home prices will rise.