Wednesday, October 3, 2018

October 2018 Q3 Truckee-Tahoe Market Report

The third quarter of 2018 was record setting for real estate in the Tahoe Truckee region by every measure but for one. Total sales volume and average price hit all-time highs while median price equaled the 2006 market peak. Only the total number of sales units fell behind the same period last year due, in part, to a supply constrained market.

Total sales volume from July through September totaled $540,385,789. The second ever period eclipsing a half billion and pushing higher than the same time in 2017 by 7%. With the total number of transactions lagging by 7%, the market is being driven by premium inventory. In fact, average price (a metric more easily manipulated by extraordinarily high prices), surged by 14% from $903,576 in 2017 to $1,037,785.

Median price, more reflective of whole market conditions, bumped up 8% from $595,000 to $645,000 despite lower transaction volume.

In good markets and bad, the third quarter begins a steady climb as the regional market gains momentum when summer visitors combine with anticipation of winter-to-come. This momentum will typically peak with closed transactions in October before tapering to year end.

Driving activity during Q3, were an extraordinary number of premiere transactions of both Tahoe lakefront properties and Martis Camp estate homes. In total, 4 properties crested $10 million including Tahoe Mountain Realty’s $24,000,000 masterpiece sale on Tahoe’s West Shore. Martis Camp, a community that didn’t exist when the market last peaked in 2006, transacted ten homes in the last 90 days from $4,185,000 - $11,750,000 adding $64,000,000 to the region’s transaction volume.

With any market, the wealth is not distributed equally. While most residential structures have appreciated at a healthy clip, raw land has continued to depreciate. In addition to simple supply and demand considerations, land values have even greater variability based upon construction costs.  Building cost has soared at a rate even greater than either inflation or home appreciation due to a complex combination of rising commodity prices, regulatory costs and exceptionally tight (and busy) labor supply.  As a result, residual land value, defined as the value of a finished new home minus the cost to build, is actually inverted in many neighborhoods throughout the region. As a result, land values hover closer to mid-recession lows than peaking home values.

Looking ahead, Q4 appears poised to maintain at the steady pace of recent years. At 5 month’s supply, there is sufficient inventory to the consumers currently engaged though many are accumulating significantly days on market for having been ambitiously priced.

While the current bull market is showing no sign of major correction, a plateauing appears inevitable as the buyer pool becomes saturated. Whether such a slowing comes before the end of 2018 is yet to be seen. Regardless, the beauty and health of the region remain recession-proof commodities.

Katie Tyler

BRE 01442453
c 530 277 1012 

Thursday, August 2, 2018

August, 2018- Tahoe-Truckee Market Update

The local real estate market had spent much of 2018 in a latent state with high demand constrained by unusually tight supply. As is often the case, spring brought a wave of new inventory allowing the market to show kinetic energy in the form of increased deal flow.

July, 2018 outpaced the same month a year prior by 1% after comparatively lagging through the entire second quarter. More notably, the market gravitated toward high-end and super-premium offerings exploding average price by 32% year-over-year to $1,058,488.  The bias toward higher-end properties also jumped median price by 15% and total transaction volume by 35%.

The headline transaction for July was undeniably the $24,000,000 sale of a premiere lakefront estate represented by Tahoe Mountain Realty.

This transaction marks the third sale above $20,000,000 in 2018 joining previous lakefront transfers of $22,865,000 and $40,000,000. Prior to 2018, just two published sales have ever eclipsed $20,000,000. Lakefront property on Tahoe has always been the pinnacle of mountain homeownership in California. Recently, strong market forces combined with the availability of rare and unique updated properties have created a groundswell of interest in premium real estate.

This influx of premium sales has created a widening gap between average and median price to the point where year-to-date average price ($1,091,966) is nearly double that of the median price ($642,000). 

This is indicative of rising wealth creation in Tahoe’s Northern California feeder market wherein quality product in a beautiful setting is of increasingly greater intrinsic value. As the San Francisco Bay Area has grown more crowded and commerce more intense, successful consumers are finding the virtue of retreating to the woods to be worth the premium.

Such conditions can’t continue indefinitely but the trend is a strong reflection of the values of our consumers. One need only study the parking lots of the region’s popular trailheads or ski resorts to understand the need for time in nature. 

Katie Tyler

BRE 01442453
c 530 277 1012

Friday, July 27, 2018

Lake Tahoe Concours d'Elegance

One of Tahoe’s most anticipated annual events is almost here. The  Lake Tahoe Concours d’ Elegance boat show will take place August 10-11, 2018. For its 46th year, the Concours will be staged at the historic Obexer’s Boat Company in Homewood along Lake Tahoe’s idyllic West Shore.

The history of the Lake Tahoe Councours d’Elegance began in 1972 when a group of Tahoe Yacht Club members and friends got together to share their passion for wooden boats. From this modest beginning, the event has grown significantly and continues to focus on improving the quality of the show exhibits  and enthusiastically sharing and educating the public about these immaculate boats.

Gorgeous wooden boats will be on display for viewing and will be judged in their respective categories. The goal of the judges is to reward those who have restored their boats to the highest level of authenticity as they appeared when they were shipped from the factory. Each boat will be judged on its own merit and multiple awards can be won in each class.

Along with the boat show, there is a range of social event opportunities to participate in.  All of the social events require tickets and will sell out so it is important to plan ahead. The Opening Dinner kicks off the weekend on Thursday, August 9th at the West Shore CafĂ©. Men’s and Ladies Lunch events will take place on Sunday, August 12th. The Tahoe Yacht Club will also be hosting a recap movie from the 2018 Concours and also the “Woody Over The Bottom Race” which is like a parade of wooden boats to conclude another memorable Concours weekend.

Wooden boats and Tahoe are synonymous with each other. The Lake Tahoe Concours d’Elegance is the perfect event and setting to take in the natural beauty of Tahoe and appreciate the history and restoration of the “Woody”.

Photo and information courtesy of Lake Tahoe Concours d'Elegance

Katie Tyler

BRE 01442453
c 530 277 1012 

Friday, July 6, 2018

The Lake Tahoe Shakespeare Festival

The Lake Tahoe Shakespeare festival is in full swing this summer on the pristine shores of Lake Tahoe at Sand Harbor. Bringing world class artists and entertainment to Lake Tahoe each summer, the experience is truly one of a kind. This year, the featured performances are Macbeth, Beehive and the Showcase Series. The setting for the performances is unparalleled enjoying views of Lake Tahoe, seating on the sand and table service or order-ahead dining for the show. There is not a bad seat in the house.

Macbeth needs no introduction as one of Shakespeare’s most well-known tragedies. What is unique to this performance is that the seating at the venue will be re-arranged  to mimic an Elizabethan theatre so that there are on-stage seating options. The result will be a very intimate and immersive experience for the audience.

Beehive: The 60’s Musical is an off Broadway performance that celebrates the groovy women musicians who made the 60’s memorable. Songs will be performed honoring artists such as the Supremes, Janis Joplin and Aretha Franklin.

The Showcase Series features many different performances ranging from the Reno Philharmonic Orchestra, The Sierra Nevada Ballet, Jazz performances, famous acts such as Super Diamond and more.
The Lake Tahoe Shakespeare Festival is an enchanting experience that is not to be missed. For more information click here.

Katie Tyler

BRE 01442453
c 530 277 1012

Year To Date Market Report - Tahoe-Truckee 2018

During the first half of 2018 the Tahoe-Truckee region has seen an explosion at the highest reaches of the market with 66 properties trading at values in excess of $2,000,000; a figure that exceeds the 12-month total of 7 out of the last 10 years. Reduced supply combined with surging demand have resulted in slightly fewer sales at substantially higher prices, and conditions defining the performance of the market are satisfyingly linear.

The motivation of consumers seeking a lifestyle enhancement, whether as a primary or secondary home, in a beautiful mountain environment is easily understandable. With factors economic and cultural in alignment, the quantity of families making this quality of life decision has never been greater. In the simplest terms, there are generally more consumers in the marketplace than quality homes to buy. 

Premium lakefront offerings, those that have been updated or rebuilt and sit on remarkably parcels of land, have led this charge with three sales topping $20,000,000 and another handful in play for the second half of 2018. Not far behind traditional lakefront estates on premium values but at the opposite end of design spectrum, is the continued phenomenon of Martis Camp. With new, modern homes and an unrivaled amenity package, home sales have doubled year over year while values reach to $8 million and above for select offerings.

Such robust activity is somewhat atypical of the season; particularly after a late-arriving winter. The second half of any given year will see nearly double the transaction volume of the first half. The current sense is that the only factor limiting this potential is restrained supply. Inventory levels have been hovering around 3 months’ supply for much of the last 12 months; approximately 50% below a balanced market. As spring typically brings new listings to market, we currently sit at a balanced 6-month supply. With the aforementioned interest piquing, conditions are ripe for a sensational last two quarters of 2018.

I look forward to being your go-to resource for navigating the dynamics of our unique marketplace.

Katie Tyler

BRE 01442453
c 530 277 1012

Tuesday, June 19, 2018

PJ's Summer Concert Series

PJ’s summer concert series kicked off this week and will continue every Tuesday evening through September 4th from 5:30PM-7:30PM.  Located on the lawn outside of PJ’s restaurant at Gray’s Crossing, the setting is unreal with open grass seating and huge mountain views as a backdrop. It is easy to see why these concerts have become a summer tradition in Truckee.

Seating options include first-come-first-serve space for blankets and chairs on the lawn, or reservations are welcome for those who would like a table dining experience while enjoying the music. For those on the lawn, there are walk up food options available for purchase including burgers, hot dogs and sandwiches along with a full bar. Table reservations will enjoy a specialty BBQ menu and buffet that includes PJ’s signature ribs, chicken, salads, desserts and more. Reservation dining can be booked in advance and usually fills up fast.

Next Tuesday, look for Peter Joseph Burtt and The Kingtide on the stage at PJ’s. Burtt’s music draws on influences from time he spent studying and playing with musicians in Africa, and much of his music is played on traditional instruments like the 26 stringed kora. Look for well-known local acts on the calendar as well such as the Dead Winter Carpenters, The Serina Dawn Band, and everyone’s favorite: Ike and Martin.

Sitting on the grass, enjoying breathtaking views and music on a summer evening is pretty perfect. PJ’s is the place to be this summer to celebrate long, gorgeous Tahoe summer days.

Photo courtesy of Tahoe Mountain Club. 

Katie Tyler

BRE 01442453
c 530 277 1012