Real Estate: State of the Lake Tahoe Market

When considering where to buy homes in the Lake Tahoe area, Helium Report asserts that market research is essential. Tom Bruno, a Coldwell Banker broker with 30+ years of experience in the Lake Tahoe area, helped us delineate the situation:

“Real estate prices in the Lake Tahoe area have been flat since October after a downward-sloping five-year-stretch,” said Bruno. “We expect not to see any movement in listing prices for five more months.”

Real estate indicators point to a good buy-in time. “Luxury properties always lead the way,” he continued, “so properties priced at $3 million and over will start appreciating before the rest.” Bruno recommends buyers of high-end properties to start considering their options now.

Helium Report asked Bruno if there is such a thing as a “best time” to buy in Tahoe. According to a study he did two years ago, Bruno claims there are 39% fewer properties listed during the peak winter months, but only 14% less sales. Statistically, the market for a buyer is tougher in the winter months. Bruno also mentioned that there are a few “dead” periods in home sales: between Easter and July 4th, and between September and mid-December (depending on when the snow comes). The best time to buy in Tahoe is the Fall, when plenty of listings offer a wide choice to perspective buyers, and some negotiation power as well.

It is difficult to always find the perfect home that will give you the most bang for your buck though. Lake Tahoe’s location being such a prime factor in real estate sales, comparing the price per square feet of homes is not always the best indicator. It is no surprise that homes next to the lake or ski resorts are in high demand and worth a lot more than other homes. Other details such as floor plan, year built, and the overall quality factor in the price tag, making the price-per-square-foot metric inadequate to measure the value of a luxury home.

Where to Stay

There are few different lodging options (some of which are listed below) for people looking to vacation in Lake Tahoe. Please note there are no five-star resorts in Tahoe (yet), and a limited number of four-star hotels are available. Resorts might be better suited for couples or small families going to Lake Tahoe since it is easier to find suites or one-bedroom accommodations. Listed below is a comparison of different lodging options during off season. Rates during the winter and holidays are subject to change.

Destination Clubs

Lake Tahoe is gradually becoming more and more popular among destination clubs with seven different clubs established around Lake Tahoe. Most have built only one or two homes, but unlike more popular destinations such as Los Cabos. Below is a brief glance at the destination clubs currently located in Lake Tahoe. To find other destination club locations check out Helium Report’s interactive map widget.

Luxury Fractional Options

If you’re considering fractional ownership, there are a number of private residence clubs to choose from. Most are located in or near ski resorts such as the Northstar Ski Resort or the Heavenly Ski Resort and provide ski-in/ski out access. Private residence clubs for those who wish to be closer to the lake are also available.

Luxury Home Sales

Aside from destination clubs and private residences clubs, full second-home ownership is still an option. A ski-in, ski-out condominium in a ski resort such as Northstar will be more expensive than a single-family residence in Truckee. The median price per square foot though usually falls around $1,000. Listed below is a sample of residences that can be found in the luxury real estate listings. Prices range from $1,480,000 to $100,000,000 and the price per square foot ranges from $495 to $1,338.

Other Luxury Accommodation Options

Aside from destination clubs and private residence clubs, vacation rentals are available all around Lake Tahoe. Some companies can assist you in sorting out the thousands of available properties available for rent. The following links can assist in searching for an accommodation that fits your needs.

• Tahoe Luxury Properties provides listings of luxury vacation home rentals and real estate sales in the area.
• Lake Tahoe Vacation Rentals provides available vacation rentals, with a luxury filter.
• Tahoe Mountain Resorts Lodging features condominiums located in the Village at Northstar and cabins available in Old Greenwood.

In terms of hotels and resorts, no five-star properties are yet available. While we wait for the Ritz-Carlton Highlands, Lake Tahoe to be completed, here are a few of the top hotels currently available.

• Resort at Squaw Creek – Nestled at the base of Squaw Valley and site of the 1960 winter Olympics – minutes from world renowned Lake Tahoe, the Resort at Squaw Creek is the premier all season mountain resort in California. Its 405 resort rooms, and suites complete with residential style kitchens, fireplaces and LCD flat screen TVs, offer guests four-diamond luxury and full service amenities.

• Hyatt Regency Lake Tahoe Resort, Spa and Casino – This resort is complete with six restaurants, elegant guest rooms, cottages and suites, and a year-round swimming oasis. Condé Nast Traveler’s reader’s poll names the Hyatt Regency Lake Tahoe Resort, Spa and Casino as one of the top 50 ski resorts in North America.

• Plumpjack Squaw Valley Inn – Situated in the Olympic Village, the Plumpjack Squaw Valley Inn was built in 1959 as a home for the 1960 Olympic delegation. Completely renovated in 1995 to create a special ambiance of comfort and style, amenities include down comforters, thick-hooded robes, luxurious rooms and attentive service.

Real Estate Tips

Location is a must; if you’re not on the lake, then you want to be as close as possible to the resort you are going to ski at. Traffic at Tahoe can be dreadful during the peak months, and road conditions can be unpredictable. Being snowed-in with snow toppling the front door is not unusual. Although there is not one clear winner in terms of top locations, except for lakefront properties, buying a home in Nevada versus California is worth evaluating with care due to the different tax legislation.

Homes worth $2.5+ million and more should feature master bedrooms on the living floor, family and living rooms with a great room effect, three-car garages, and if possible, a lake view. Renovated kitchen and bathrooms are a must for older properties, but according to Tom Bruno, who helped us compile this guide, the trend is toward newer constructions featuring gourmet kitchens and marble bathrooms.

Background on Lake Tahoe

Lake Tahoe, located between California and Nevada, is one of the top ski destinations in the world and boasts fifteen ski resorts. The lake itself is 1,645 feet deep making it the second-deepest lake in the U.S. behind Crater Lake in Oregon. It is also one of the largest lakes, 192 square miles, and highest at an elevation of 6229 feet.

When planning a trip to Lake Tahoe your first decision will be whether to go to North Shore (Nevada) or South Shore (California/Nevada). It’s about an hour’s drive from one end to the other on a two lane road, so you may want to stick to one destination. If you’re into skiing, sledding, gambling and nightlife then South Lake/Stateline is the spot for you. If you prefer skiing, snowshoeing, dinner for two, and gorgeous lake views, then plan on visiting North Lake or Squaw.

Weather in Lake Tahoe is ideal for both the summer and winter months, with the year averaging 250 to 300 days of sunny weather. During the summer, temperatures usually stay around 70°F and during the winter, 32°F. Elevations are high enough at the ski resorts though to keep snow falling from November to April, with an average of 50 days of snowfall every year. To read more about the weather report for Lake Tahoe, click here.

Image source: Weather.com

How to Get There

By Plane

The nearest airport to Lake Tahoe is the Reno-Tahoe International Airport, a 45 minute drive to North Lake Tahoe. Direct flights can be found from eleven major cities including Chicago, Houston, and Las Vegas – with eleven different airlines. You can also fly into Sacramento International Airport, a two-hour drive from Lake Tahoe, which also offers direct flights to 50 cities. Private jets can land at Lake Tahoe Airport located in South Shore or Truckee Tahoe Airport in North Shore, both less than fifteen minutes away.

If you’re interested in chartering a jet flight out of California you have many companies to choose from:

• XOJET, Inc. out of San Carlos
• TAG Aviation in Burlingame
• Le Bas International in San Luis Obispo
• ElleJet Aviation Services out of San Diego
• Air Royale International in Beverly Hills
• ACM Aviation in San Jose.

By Car

Nestled high in the Sierra Nevada Mountains, Lake Tahoe is a one-hour drive from Reno and three hours from San Francisco, depending on weather and traffic. In winter weather, on a busy holiday weekend, the drive will take closer to four or five hours. Check the weather, snowfall, and traffic reports before starting your drive and keep snow chains in the car just in case. The drive to North Lake Tahoe on Highway 80 is a little easier and quicker than the Highway 50 route to South Lake and Kirkwood. Driving directions from cities in California can be found here.

Seasonal Information

Peak season in Lake Tahoe is during the wintertime (late November through March), but demand is high during the summer months too. Lake Tahoe has a lot to do year-round. Skiing and snowboarding are popular in the winter while fishing and other water sports, along with mountain biking and hiking, are popular in the summer.

Download a Guide, Know Where to Start

• Helium Report’s Decision Guide to Destination Clubs
• Helium Report’s Decision Guide to Private Residence Clubs