This was an encouraging headline today on Bloomberg.com.
I can tell you that in this North Tahoe market, we have definitely seen increased activity in the past 4-6 months and in some "sub-markets" the inventory has been absorbed and the prices are coming up again. There are some good deals still out there, but they are getting picked up very quickly by savvy buyers (often advised by good local real estate agents) who have been watching this market like hawks.
Also of interest -Martis Camp has sold about 40 developer sites since January of this year with nominal (10%) discounts off of the list price. The average sold price has been $715K and a good percentage of these buyers intend to begin construction within the next year.
Builders and architects having more business = higher cost per square foot to build. In fact, I have recently spoken with a couple of local builders who are quoting higher prices now than they were in the summer (~$25-$50 psf higher). On a grand scale this increase may translate into a $200K difference out of pocket on a 4,000 sf. home (from $350 psf to $400 psf).
The developer at the Village at Northstar sold through 41 condos and 10 Village Walk townhomes in the last 12 months totalling around (+/-) $30M most of which were cash transactions. The market in The Village at Northstar has jumped from some comps hovering around $500/sf to some more recent closed resale transactions at over $720/sf.
The Hyatt Northstar Lodge has just released some amazing whole ownership ski in/ski out condos that are priced very comparably to resale condos in the Village at Northstar and have the advantage of the Hyatt brand and enhanced owner services in the building. Turn key, fully furnished, high end finishes, Tahoe Mountain Club Membership, etc...starting at $865K which is $728/sf....very in line with the resale market.
Just some interesting tidbits. If you are one of those people who have been "watching" it may be time to make a move.
