South Lake Tahoe Real Estate Newsletter – June 2025
Market Snapshot: Spring Surge in Inventory and Steady Prices
South Lake Tahoe real estate activity in April and May 2025 showed a notable increase in new listings, with about 73 new listings and 40 sales in April, and roughly 90 new listings versus 30 sales in May. This influx of inventory is giving buyers more options while keeping overall supply relatively constrained compared to pre-pandemic levels. As a result, home values have remained supported. The median sale price in April was approximately $660,000, ticking up to around $690,000 by May as a few higher-end sales closed.
Homes are also selling faster than last year, with average days on market in April down to 77 days from 106 a year prior. Buyers remain selective and price-sensitive, but well-presented homes that are priced right continue to generate strong interest.
Overall, home prices are holding firm compared to last year. The median price this spring is slightly below the peak levels of 2021-2022 but roughly on par with last year’s values – a sign of market stability. Buyer activity is picking up with the warmer weather, and while buyers are negotiating carefully, they are willing to act decisively for the right property. The increase in new listings gives buyers more choices now than in the winter, but with just around 185 homes on the market in April (versus 152 in April 2024), inventory remains modest by historical standards. This balance supports both buyers and sellers.
Neighborhood Highlights: From Tahoe Keys to “The Y”
South Lake Tahoe’s submarkets are all seeing activity, with some standout trends:
- Tahoe Keys & Waterfront Homes: The Tahoe Keys neighborhood continues to shine this season. Desirable for its lagoons and lake access, Tahoe Keys saw robust high-end sales, including a waterfront home on Venice Drive that closed at about $1.99 million. Increased interest in waterfront condos and homes is expected to continue into summer.
- Montgomery Estates & Heavenly Area: Homes near Heavenly Ski Resort and in Montgomery Estates remain in demand. A remodeled A-frame cabin in the Heavenly area sold for around $1.2 million in April, underlining that buyers are willing to pay for quality, views, and location.
- Affordable Cabins & Local Favorites: At the more entry-level end, smaller cabins and homes under $500K are finding buyers when priced competitively. A cozy two-bedroom in the Tahoe Valley/“Y” area changed hands in the high-$400Ks after a price reduction. Buyers are ready to act when they see value, but overpriced homes or those needing work may sit on the market until prices align with buyer expectations.
Local Updates: Short-Term Rental Debate and Community News
- Vacation Rentals (Measure T Overturned): In a major development, Measure T – the 2018 initiative that banned most short-term rentals in residential areas – was struck down in March 2025. The City Council opted not to appeal the ruling and is now crafting a new VHR ordinance. The draft includes a 150-foot buffer between VHRs and stronger enforcement rules. A moratorium on new VHR permits remains in place until June 19 while details are finalized, with adoption of the new ordinance likely by the end of the month.
- Vacant Home Tax Defeated (Measure N): Measure N, a proposed vacancy tax on second homes, was decisively defeated in the November 2024 election. Nearly 74% of voters rejected the proposal, relieving second-home owners of the potential $3,000-$6,000 annual tax burden.
- Housing and Development News: A new affordable housing project on Lake Tahoe Boulevard was approved this spring, bringing 75 income-restricted units targeted for local workers and families. Additionally, the major redevelopment of Harvey’s Casino at Stateline is underway, transforming it into a modern mixed-use destination with upscale dining, retail, and entertainment. These projects reflect a broader investment in South Lake Tahoe’s year-round vibrancy and community balance.
A Look Beyond: Market Volatility & Buyer Confidence
Broader economic factors are also in play. New tariffs on building materials like steel, aluminum, and lumber are contributing to higher construction costs. In response to inflation, the Federal Reserve has maintained higher interest rates, with mortgage rates hovering in the mid-6% range. These conditions can impact affordability, especially for first-time buyers.
Financial markets have experienced volatility due to global events and tariff changes, which can shake consumer confidence. However, many Tahoe buyers are motivated by long-term lifestyle and legacy goals, not just short-term investment. Some buyers are even moving quickly to lock in rates before further increases. Despite economic ups and downs, Tahoe remains a desirable, stable destination that continues to attract motivated buyers.
In Closing: Opportunities This Summer & Calls to Action
South Lake Tahoe’s real estate outlook is bright heading into summer. Slightly higher inventory, steady prices, and easing regulatory uncertainty are creating a unique window of opportunity.
If you’re a homeowner considering selling, this could be your ideal moment to take advantage of sustained values and increased buyer activity.
If you’re a buyer, you now have more options and less competition than earlier in the year – a great time to find your dream Tahoe property before summer demand peaks.
Call or email me for a free market consultation or an updated home valuation. Whether you’re just curious or ready to move forward, I’m here to help you navigate your options with clarity and confidence.
Let’s connect to talk about how current trends can create opportunities for you in the South Lake Tahoe market. Whether you’re looking to sell, buy, or invest, now is a great time to strategize.
Here’s to an enjoyable Tahoe summer and to making the most of this dynamic market!
Ryan Smith
Ascension Real Estate team leader
CA 2095506 | NV 0188892
COMPASS
