The three-bedroom South Lake Tahoe home went on sale in July, touting its location just steps from the forest. Amid the region’s booming real estate market, he struck a deal with a scheduled closing date on Friday.
The rugged surroundings turned into a handicap: the house on Ojibwa Street was only about a mile from the devastating Caldor fire, which forced a forced evacuation of the entire town.
Sierra Sotheby’s broker Demian Black advised his clients, buyers Michael and Rhea Wisherop, to postpone the transaction even if they lost their deposit. The house could be set on fire and he doubted the loan or insurance companies would sign it. His own office was forced to evacuate.
But the Wisherops were not discouraged and on Friday the property sold for $ 684,500, $ 35,500 more than its original asking price. The fire changed course, sparing the new purchase.
The Caldor fire spread to nearly 213,000 acres and shattered the idyllic status of the Lake Tahoe region as a pandemic blue sky escape, suffocating the area with smoke and displacing tens of thousands inhabitants. But real estate experts say the region’s booming real estate market is resilient.
“I definitely anticipate a little hesitation” after the wildfire, Black said. But “people have been coming to Tahoe for a long time.”
The median price of South Lake Tahoe homes jumped 50% to $ 737,000 in the second quarter from a year earlier, according to Sierra Sotheby’s. Truckee, which has seen an unprecedented surge in transplants from San Francisco, gained 63% for a median price of $ 1.2 million.
“It was probably one of the biggest real estate markets we’ve ever seen,” said Camille Duvall, vice president of North Tahoe and Truckee at Sierra Sotheby’s. “When they can work from anywhere, they spend time here.”
Money continues to flow, despite the danger nearby. Sierra Sotheby’s broker Breck Overall closed a $ 4.5 million sale this week near Donner Lake and Truckee. The north side of Lake Tahoe, where he works, is further away from the fire and the air quality is better.
“I don’t see a big change, with people saying, ‘We’re not interested,'” he said. “I don’t really see this demand diminishing at the moment. “
The threat of the virus and more restrictions in the Bay Area will continue to push people to come to Lake Tahoe, he said.
Most Overall customers are also lucky enough to be able to move around easily when the smoke thickens. In 2020, his team worked with 102 families, all of whom were buying second homes in Lake Tahoe.
“I haven’t had any of them calling me and telling me, we want to go out,” he said. In his 18-year career, only five buyers considered getting rid of their other homes.
There has been some pullback on the price spike, so Overall expects the growth rate to decrease, but he doubts prices will drop anytime soon. Sellers are motivated to make a profit and few are in financial difficulty, he said.
There is more uncertainty for tenants.
Tristan Biles and his girlfriend moved from San Francisco to South Lake Tahoe during last fall’s pandemic, enthusiastic about regular ski trips and access to the outdoors.
The purchase was too expensive, but they were able to rent a condo next to the Heavenly Mountain Resort. “I never thought it would be viable,” he said. “We saw an opportunity and jumped on it. “
What he didn’t expect: to have to flee to Palm Springs last week.
He plans to return soon and remains attached to Tahoe, and doesn’t know what it would take for him to leave. He would consider a place with the same amenities and less risk, but couldn’t find it.
“I think a lot of people don’t know what to think. You see it on the news, it’s really bad. Until you see it for yourself you don’t know what to think about all of this, ”he said. “I’ve been obsessed with Tahoe for so long.”
Other areas of northern California have experienced more destructive wildfires. Yet the demand for housing has only intensified during the pandemic.
“Napa, Sonoma and Santa Cruz counties have obviously seen terrible fires over the past four years, but their markets have always rebounded very, very strongly and quite quickly after the fires, and their median house prices are a lot. higher than ever before, “said Patrick Carlisle, lead market analyst at Paragon Real Estate Brokerage. “Buyers always want to live in these beautiful places. If history is any guide, Lake Tahoe will also rebound from the current crisis. “
Yet fires present challenges. The Wisherops, who live in the East Bay, wanted to buy in Tahoe for a long time after visiting frequently. The first obstacle to buying their home in South Lake Tahoe was the Tamarack fire last month, which compromised insurance. But because firefighters brought the blaze under control, buyers were able to purchase insurance before the Caldor fire became a threat.
“It never had an impact on the loan, otherwise we would be out of business,” said Michael Wisherop. “The firefighters did a great job.
Roland Li is a writer for the San Francisco Chronicle. Email: [email protected] Twitter: @rolandlisf