The 2022 lakefront real estate market was considerably slower than the previous year with regard to the number of transactions, however, record-breaking sales were achieved on both the West Shore and the North Shores.
When looking at the number of transactions, 2022 saw only 11 single-family lakefront sales from the state line on the North Shore to Rubicon Bay, the lowest number since 2006. This followed a robust selling season in 2021 where 25 lakefront properties traded, with many closing above the asking price. A common scapegoat for the drop in transactions in 2022 was the limited supply of inventory to begin the year, however, Buyer demand continued to wane even as inventory increased into the summer months. 8 lakefronts sold in the first half of the year compared to only 3 in the second half.
Despite a drop in the number of lakefront transactions, the average sale price continued to surge higher thanks in large part to 2 record-breaking sales. On the West Shore, 2500 West Lake Blvd closed on May 27th for $41,259,400, which broke the previous record of $40,000,000 that was set in 2018 with the sale of 2380 Sunnyside Lane. On the North Shore, 4240 North Lake Blvd closed on January 11th for $23,650,000, surpassing the sale price of 1870 North Lake Blvd, which sold in 2018. Overall, the average lakefront sale price was $11,197,000, a 20+% increase over the previous year. While the average sale price increased, the median sale price decreased from $7,821,000 to $6,225,000, the first year-over-year decline since 2016.
The considerable slowdown in the lakefront market is understandable when looking back at the year as a whole. Many of our luxury buyers in the Tahoe region are at the forefront of the technology and venture capital industries. Even a quick look at the S&P500 or the Nasdaq over the past 12 months will show a brutal reassessment of many company valuations in the technology sector following years of incredible growth. We aren’t seeing Buyers walk away for good, however, they are more discerning in their search and more cautious with their dollar. With “Days On Market” increasing for active lakefront inventory, and price reductions coming back into style, many Buyers could be rewarded for their patience as we enter 2023.
– Brendan Boyle | The Moore Team
*All statistical information is from the Tahoe Sierra MLS and public records, and is deemed reliable but not guaranteed