Tahoe-Truckee Market Update
Supporting the theory that market conditions will override seasonal trends, the Tahoe-Truckee real estate market has continued to surge at a time when activity often tapers down into an early winter hibernation.
October 2017 saw over 200 residential transactions for the third consecutive month; the first time on record for such a streak. The 90-day period from August through October has produced over $500,000,000 in total sales volume; number nearly equal to the volume of entire years during the recession.
In a typical year, September and October offer a similar number of closed transactions yet September typically offers the years’ peak average price while October shows its’ trough. This is indicative of the end of the retail buying season followed by value based purchases resulting from price reductions. September followed suit offering an average price just below $1 million. Transactions in October, however, matched the annual average of $840,000 showing strong momentum continuing into the 4th quarter.
In addition to another five Martis Camp home sales, notable in October were four Tahoe lakefront home sales. This class, long the epitome of luxury in the region, has seen an interesting revival in 2017. As redevelopment has been stymied in the Tahoe Basin over the last decade, resort property in Truckee’s various resort communities have offered newer, highly amenitized offerings tantalizing a younger generation of consumers. 2017 has already surpassed previous years with 28 lakefront sales at an average price near $4.5 million; nearly identical to the average sale price in Martis Camp.
While Truckee resort properties offer greater overall quantity, the ratio of purchases $1 million and above has balanced dramatically from a high of 2.75 Truckee sales for every lakeside transaction to a more balance 1.85 in 2017.
With 260 properties currently pending sale, strong market performance appears likely to continue outperforming the season. Gray’s Crossing, Lahontan and Martis Camp each have five residential sales pending scheduled to close by year end. With snow in the forecast and resorts scheduled to open for skiing within 3 weeks, attention will inevitably shift to mountainside properties were a number of premiere properties will likely trade ahead of the holiday rush.
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