2025 Year End Real Estate Market Report
North Lake Tahoe -Truckee
Residential Properties – Single Family Homes & Condominiums

Residential Sales Summary:

2025 was a roller coaster in the Lake Tahoe/Truckee real estate market.  Q1 was full of optimism and strong activity, particularly in the luxury market.  It seemed like the market might be poised to take off.  That was squashed, however, by the tariff led stock market retreat and general economic uncertainty in Q2 and early Q3.  As the stock market recovered and returned to highs, local real estate demand surged along with it, taking us to a strong finish in the 2nd half of the year.  All in all, despite a relatively slow real estate cycle the last 3 years, the Lake Tahoe/Truckee market is healthy and strengthening compared to 2023 and 2024. 

Total Residential Sales:

There were 1154 residential sales in 2025. That's a 9.3% increase over the 1056 sales in 2024. It puts us at 95% of the 5 year average and 82% of the 10 year average. The 2nd half of the year is what fuels optimism, coming in at 103% of the 5 year average.

Digging into market segments, there are some highlights worth mentioning. Sales of residences over $5 million increased by 51% (from 39 to 59) and sales of homes between $2-5 million increased by 27% (from 138 to 175) compared to 2024. Some neighborhoods that really stand out are the North and West shores, where total transactions were up over 25% year over year. Lake Tahoe lake fronts increased from 17 sales in 2024, to 27 in 2025. Lahontan sales increased from 10 to 24, and Martis Camp from 24 to 30. All of this serves as further evidence that the market is healthy and strengthening.

Median and Average Sales Prices:

Pricing continues to be a positive story in the Lake Tahoe/Truckee market. The median price of a residential sale in 2025 came in at $1.125m, exactly equal to the median in 2024. The average sales price increased by 8% (from $1.631 million to $1.760 million). Of particular impact on this number was the strength in the luxury market.

For single family homes the median was up 3.8% (from $1.203m to $1.248m) and the average price was up 9.6% ($1.820m to $1.996m) compared to 2024. For condos the median price was up 2.9% (from $710k to $717k) and the average was down 3.3% (from $983k to $950k).

Prices continue to be at a very healthy premium from where they stood in 2019 (before the pandemic). For single family homes the median sales price is 68% higher compared to 2019 (from $744k to $1.248m). For condos the median sales price is 67% higher compared to 2019 (from $430k to $717k).

Some neighborhoods had particular highlights in pricing. Four of the 5 highest sales prices in the history of Martis Camp closed in 2025, and all 5 have happened since Q4 of 2024. Lahontan had 2 sales that eclipsed the previous record high. Schaffer's Mill had 4 sales above the previous record high and 6 of the 8 highest in neighborhood history.

Active Residential Inventory:

Supply was the big story of the first half of the year. Inventory peaked at about 600 residential units in early July, which approached pre pandemic levels. For the first 6 months of the year, we saw 30% more listings than we did in the same period in 2024 and 12% more listings than the 10 year average for the period. In the second half of the year (Q3 in particular), supply mellowed and demand returned, rapidly decreasing inventory from the early summer highs. As we start into the new year, there are about 290 residences currently on the market. Last year, at this time, there were about 260 residences actively for sale. In 2019 the number was closer to 400.

We were at 5 to 6 months of supply from Q2 through the end of the year. Historically 5 to 6 months of supply is considered a balanced market, but it felt like it leaned toward sellers early in the year. However, as the year progressed, things balanced out.

What’s Going On Looking Forward?

The market is not "hot" by any stretch of the imagination, but we enter 2026 with solid momentum and reason for optimism. I've used the phrase healthy and strengthening and I think that is the correct moniker. With the stock market continuing to push record highs, and the interest rate outlook positive, we expect more of the same in 2026. Another uptick of 5-10% more transactions than 2025 seems like the most likely scenario. There are still some head winds, particularly insurance costs, keeping the Tahoe real estate market in the realm of "healthy" rather than "hot".

Sellers, keep in mind, this is still a much better time to be a seller than it was in 2019 (which seemed like a very healthy market at the time!). You can expect a similar time on market, but much higher sales prices!

Buyers, keep in mind, this is the most balanced market we have seen in the last 6 years. You now have the following things working in your favor:

• An inventory of homes to choose from.
• The ability to negotiate price.
• The ability to inspect a property and have normal contingencies.
• The ability to negotiate repairs.
• Tahoe real estate prices are still significantly cheaper than those seen in other major ski resort markets in the western United States (Jackson Hole, Park City, Vail, Aspen, etc)
• Yes, interest rates are higher than we got used to but are in the “normal” range historically speaking. We do not expect significant changes in interest rates in the foreseeable future. If/when they do start to drop, it will likely cause an increase in demand and increased prices. You are better off to buy the right home now, in a relatively balanced market, and refinance if rates drop.

Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.