Tahoe-Truckee Market Update
Momentum continues to build toward what has promised to be a blistering summer for real estate in the Tahoe – Truckee region. Each month in 2015 has built steadily upon the last leading to the first period to exceed 100 transactions this year. While values and transactions still lag somewhat behind 2014, optimism remains sky-high for the months to come.
The heat of the market continues to be focussed in primary home neighborhoods as 108 of 119 sales were below $1,000,000. This trend offers a positive indicator for several reasons. Primary owners, or local merchants, service provider and tradesmen have seen positive growth for a sufficient period of time to generate some upward mobility. Correspondingly, positive growth in the primary market always foretells a season of expansion in the second-home markets. With vacationing consumers set to return to the region, many for the first time since last summer, the market stands to enjoy a full reset on demand for luxury, second homes. Consumers trends continue to show wealthy consumers trending younger and seeking access to family-oriented experiences through their real estate purchases. Whether this means a lavishly amenitized community like Martis Camp or slopeside homes at Northstar the Tahoe – Truckee region continues to have a perfect option for every family.
Typical of annual trends new inventory was introduced to the market in May, as many sellers rush to come on the market by Memorial Day Weekend as an introduction to the summer consumer rush. This is often about 30 days premature however as our buyers normally don't return with significant force until school is out, graduations are complete and the 4th of July is looming. This year, inventory jumped from a balanced 6 months' supply to nearly 9 months' inventory. Equally typical of the season is the ambition of these sellers. Of the 269 new listings introduced in May, 64 (24%) topped $1,000,000. Year-to-date, 12% of all sales have exceeded $1,000,000. The median price of new inventory is 17% greater than the year-to-date median sales price, which is indicative of some ambitious sellers hoping to capitalize on the trajectory of the market.
We made similar observations at this time a year ago and saw a huge uptick in sales and values as the summer progressed. With rental bookings at historic highs heading into summer, it is not unlikely that we will see a similar arc this year. Look for June to show steady progress over the month before a substantial jump in July that will likely continue into the fall months.
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