Home Values Gaining Ground in Tahoe Donner
The year is off to a good start in Tahoe Donner, with real estate sales showing a nice uptick from 2023. Despite very low inventory (only 12 homes were available for sale at the end of January), 10 homes changed hands in Tahoe Donner during the first month of 2024. That's up from just 8 the year before.
The median sales price rose to $1,157,500 (a 3 percent increase over 2023), thanks in part to new construction sales north of $2 million. Brand new homes in Tahoe Donner are fetching close to $700/square foot. That's up significantly from just a few years ago, when new construction prices around $500/sf were raising eyebrows. But it's not greed that's driving the trend; it reflects increasing construction costs across the board, especially for concrete and other building materials.
Here in Tahoe, labor also carries a premium. Builders who want to work with the best craftsmen have to offer competitive ages to retain talent. For skilled carpenters and the best in other trades, company trucks and other perks are not uncommon.
With Tahoe Donner largely built out, the remaining lots for new home construction tend to come with challenges like steep terrain, access roads, or rocky soil. While many of those lots also offer terrific views, the costs of building on them tend to be higher than a level lot.
View of Donner Lake from Tahoe Donner
Across the board, the volume of home sales in the Tahoe Truckee region fell by half during 2023. But Tahoe Donner bucked that trend. Year over year sales volume fell in Tahoe Donner last year by just 30 percent.
Tahoe Donner: A Seller's Market this Winter
With very low inventory -- only 13 for sale as of Feb 5 (almost all over $1 million, and three of them over $2 million), this Winter is an excellent time to sell. Several feet of fresh snow promises great skiing through Spring. And Tahoe Donner, with one of North America's best cross country ski areas, easy access to backcountry, and its own downhill skiing, tends to see consistent demand in the winter months.
With HOA fees of just $2,907/year for a year-round resort lifestyle, Tahoe Donner was long considered one of Tahoe's more "affordable" vacation home destinations. That's changed in recent years, as the number of luxury homes selling for more than $1 million began to outstrip lower-priced inventory (click here for a report on that Luxury Trend in Tahoe Donner).
Full Disclosure: I've owned property in Tahoe Donner for 25 years, and am currently finishing construction of my new home there.
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