Patricia Franklin and her husband Doug dreamed of a second home on Lake Tahoe during the COVID-19 pandemic for families.
The couple started with a budget of $ 700,000, which they thought was enough to get a house ready to move in in a beautiful area.
After six weeks of online searches and masked house tours, the Franklins found their answer – a million dollar renovation house on the Nevada side of the lake. The family, including two student-age children, traveled from their home in Novato to their new home on several occasions. “We had sun loungers in the living room and an air mattress in the back,” Patricia Franklin said. “It was like glamping.”
While the state is easing pandemic restrictions and companies calling workers back to the office, Gulf families pay dues for a second home and retreat surrounded by Tahoe’s natural beauty and outdoor activities. Homes are selling at record rates and at record prices in tranquil resort towns.
“Demand hasn’t dropped at all,” said Truckee’s agent Breck Overall. “Not a drop.”
Home values in Nevada County, including Truckee, jumped 29% to $ 604,000 between May 2020 and May 2021, according to Zillow. Nearly 4 in 10 homes sold above list price are three times higher than before the pandemic.
Home values in El Dorado County, which stretches from the Sacramento suburbs to the shores of South Lake Tahoe, rose 27% in May from the previous year to $ 599,000. That’s nearly three times faster than the value of houses in the Bay Area has grown over the same period. “The rate of price growth here is astronomical,” said Zillow economist Jeff Tucker. “And we haven’t seen slowdown yet.”
Nationwide, home values increased 13.2% over the same period, according to Zillow.
Real estate agents and residents say the large flow of northern lands has been driven by Bay Area residents. Analysis of data from the United States Postal Service showed an influx of 14,700 San Francisco and East Bay residents into the Tahoe-Sacramento region. In comparison, according to an analysis by real estate company CBRE, only 3,000 San Francisco and East Bay residents have moved to Austin, Texas.
Tahoe is even seeing a surge in the ultra-luxury market with record real estate prices. This month, the seller put up their $ 60 million lakeside estate with guest houses for sale, which could be a record for Incline Village in Nevada.
The market has become a seller’s dream, and buyers are trying to place bids on a relatively small number of properties for sale. While Bay Area companies are returning employees to the office, many techies and wealthy buyers have opted to invest in second homes in Tahoe’s most exclusive enclaves.
Tahoe City agent Jamison Blair said competition in the Bay Area had seeped into the once sleepy resort market, leading to a war of bidding, cash offers, and as-is deals. “We just don’t get it here,” he said.
Families have become more focused on quality of life during the pandemic and still want to stay close enough to their jobs in Silicon Valley, he said. Shoppers who were once looking for open space and a bonus room for kids are now heading their wishlists with high-speed internet, office space, and large closets suitable for extended stays.
Jenna Rose Madrid, a Compass agent at Incline Village, said she sees more Californians wanting to relocate to Nevada with a view to retirement and benefit from lower taxes in the state.
The pace was frantic. Madrid said it sold at least half a dozen homes after running a Facetime video tour for clients, but buyers did not step on the property. “It’s like,“ Come on, come on, come on! “- she said.
Dan Clarke and his wife sold their investment property in San Francisco and wanted to find a vacation property that could be converted into a permanent residence. The pair, baby boomers who recently became residents of empty nests, searched in Palm Springs and Tahoe, losing several bets along the way. “We picked two of the most popular markets,” in California, Clarke said.
They ended up knocking out other buyers for a $ 1.5 million house in Tahoma, paying a roughly 10% premium to the list price to buy a house big enough for the kids and grandchildren to pack up on vacations and vacations. An intense search surprised Clark, a seasoned Berkeley real estate agent. “I didn’t know it would be so competitive,” he said.
Overall, according to Sotheby’s International, his office made 102 sales last year, and “none of these families sold their main home.” His typical buyers were from the Gulf, between the ages of 45 and 65. According to him, many want to retire.
At the start of the pandemic, The Whole Company represented a buyer who signed a $ 6 million home deal without ever stepping on the property. “For me it was a sign that people really want to get out of town,” he said.
But the agents also said the steady demand for homes has pulled many investment properties and leases off the market. Locals and tourists have struggled to find suitable accommodation for part-time and year-round living.
“There are fewer and fewer holiday homes because more and more people want to spend full time here,” said Madrid, a native of Tajo. Many of her childhood friends have been sold, she said.
But the bloated housing market has done little to slow down buyers in the Bay Area.
Patricia Franklin and a friend began searching for homes on the Tahoe just months after the pandemic began. The Franklins compromised. Doug Franklin, a retirement insurance consultant, agreed to take over the fix.
Franklin said their home in Incline Village has a solid frame and a decent roof, but it requires floors, electrical systems, windows and new siding. The couple only started renovations in June, a year after the purchase. According to her, before the renovation, the cost of the house increased by 20%.
“If you really want to live here,” she said, “you really need to jump.”