Two months into 2025, momentum in Tahoe Truckee real estate continues to be overwhelmingly distributed at the elite range of market. Following a trend evident since Q4 of 2024, record highs are being established in premium communities while other market segments languish amid typical winter malaise.
In February, new records were established in Northstar and Sugar Bowl to compliment benchmarks established in recent months in Martis Camp, Gray’s Crossing, Old Greenwood, and Schaffer’s Mill.
In Northstar, an exceptional mountain lodge flanked by two vacant lots in the exclusive M25 neighborhood sold for $7,500,000 upon receiving multiple bids. The spillover from this transaction has driven bids up on several offerings in Northstar Mountainside’s various enclaves, establishing new high-water marks in Boulders, Stellar Townhomes, and Home Run.
At Sugar Bowl, a more recent vintage property fetched $1,325 per square foot, establishing a new benchmark for this ascendant community that now finds itself with no available inventory.
Additional premium sales in February included a $6,995,000 sale in Martis Camp representative of a guest house on an estate parcel, two sales above $4,000,000 in Schaffer’s Mill and elite sales in Lahontan, Village at Gray’s Crossing and several locations throughout the West Shore of Lake Tahoe.
This out-weighted performance at the top end of the market has driven average price near $2,000,000 for the second month in a row. Median price settled only modestly to $1,350,000; nearly 25% higher than the mark for 2024.
While this high-end activity is remarkable, it has outsized impact on cumulative data given the absence of activity at lower price points. 61 residential sales equal the same period in 2024 and outperforms 2023 by 20% but still underperforms historic average by more than one third. This stasis is the result of a combination of factors including limited inventory, stubbornly high interest rates and a middling winter.
While interest rates are unlikely to correct meaningfully, inventory is likely to surge upon the completion of ski season. Those sellers savvy enough to beat the season and come to market now while inventory is lowest, are likely to be rewarded with the greatest yields of 2025.
Despite modest snowfall, recent storms have delivered enough to ensure the high-quality spring skiing for which Tahoe is famous. These conditions, along with longer days and good moods, are conducive to a pickup in real estate activity heading into spring.