As winter turns to spring, resort real estate sales activity typically gains momentum. Seeds of interest sewn from family vacation in December, January and February will often turn to reality with March escrows and April closings. The extraordinary snowfall from this winter has brought with it a surge in visitation to the region and a proportionate interest in real estate offerings.
Through March 15, Northstar, Alpine Meadows and Squaw Valley have combined for 42 residential transactions, exceeding recent seasons by a substantial margin. Moreover, consumer spending has increased along with the volume of snow as consumers opt for more luxurious resort offerings. The average sale is 32% higher in Squaw Valley than over the same period last year. 21% at Northstar signaling a willingness to spend on premium offerings, whether slopeside accommodations or simply more grand residences.
Similarly, inventory levels are very moderate as would-be sellers enjoy the utility of their real estate and, in many cases, a weather-driven surge in rental revenue. Northstar Village currently stands at just 5 months’ supply; a far cry from the typical 12-month absorption. Squaw Valley offers similarly constrained residential offerings with less than 3 quarter’s supply available.
A prolonged spring will allow the local market to avoid a seasonal dip during the shoulder season. Expressions of interest and showing activity are on a dramatic upswing with clear skies and open roads make unchallenged access for consumers.
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