Thursday, January 25, 2018

TMR's View - Tax Bill 2018


Accepting that resort, second-home purchases are driven almost entirely by emotion, it is understandable that uncertainty around the proposed Tax Bill may lead to some level of concern. We validate that concern and offer a few thoughts as to how these changes may impact Tahoe real estate.
Wealth permitting, the ultimate driver of demand for second homes will always be the intrinsic value, or benefit, derived from owning this property. Referencing Tahoe specifically, these drivers often include:
  •     Health and wellness
  •     Family experience
  •     Adventure
Financial incentives to promote second homeownership are certainly helpful and may aid in affording incrementally more expensive properties, but are rarely the deciding factor for consumers much in the same way that interest rate fluctuations do not greatly impact our region. Investors directly motivated by financial incentives are more typically drawn toward conventional commercial offerings rather than the resort residential sector.
The most tangible economic driver of demand for second homeownership is overall wealth creation.  Unlike primary home purchases, these acquisitions are made entirely with disposable income. Thus marginal changes to effective tax rates may not be enough to have a meaningful impact on overall demand so long as our Northern California feeder market continues to be such a powerful economic engine. Given the emotional nature of second home purchases, the greatest threat to demand is an erosion of consumer confidence relative to their own long-term ability to grow wealth.
The most meaningful shift in consumer behavior may be the re-classification of second homes to investment property. This trend has already been gaining momentum as demand for vacation rental property (otherwise known as nightly rentals), largely driven by the same wealthy Northern Californians, has grown exponentially in recent years. The phenomena enhanced by the upspring of rental management services including AirBnB has created an environment in which homeowners can offset carry costs making their own vacation time less expensive, or even profitable. While restrictions on personal use of investment property may be a limiting factor, tax advantages may push an increasing number of consumers in this direction.

In summary, we believe there may be some near-term correction to the Tahoe market as consumers adjust to their new financial realities, however the long-term demand for the region is likely to be unchanged though subject to typical market cycles.

Katie Tyler

Realtor®
BRE 01442453
c 530 277 1012 

Thursday, January 18, 2018

Drink Coffee Do Stuff


Extraordinary Coffee in Truckee, California

Nick Visconti is a Truckee/San Francisco native who grew up carving the slopes of Northstar California since the age of 1. He then spent most of the 2000’s traveling the world as a professional snowboarder. The name is familiar, his dedication runs deep and his personality is inviting. He has put his professional riding in the back seat and is now pursuing a career in coffee. Yes, after 5 years of roasting apprenticeships in specialty coffee jobs in the Pacific Northwest, Visconti and his wife moved back to Truckee where they are now roasting coffee in Truckee, California.
  

Drink Coffee Do Stuff – Extraordinary Coffee Leads to an Extraordinary Life is his brand. "Whether they’re off to work or their next Tahoe vacation, I want this coffee to be the catalyst to a really extraordinary day,” says Visconti. His brand is deigned to reflect the mountain culture and adventure lifestyle that is found in Tahoe. To make the Tahoe life even better (or at least your morning cup of coffee), they offer free delivery in Truckee and Northstar. “Less hassle, better coffee, extraordinary life,” says Visconti.
  
Visconti’s deep rooted passion for coffee shows in the quality product that he is making. “Roasting coffee is a dance of art and science. I’m manipulating the chemistry of the coffee bean on a molecular level, but it’s also an art where I’m using all five of my senses,” Visconti says. The precision and care that is put into his beans results in a magnificent cup of coffee. All of the beans that Drink Coffee Do Stuff is roasting are classified as specialty coffee and grown between 4,000 and 9,000 feet (ideal growing elevations). So far, all roasts have scored above 80 points on a 100 point scale by industry experts.

Drink Coffee Do Stuff offers four single origin coffees, which will change throughout the season as well as two blends that are always on the menu.

Visit drinkcoffeedostuff.com to order your beans today and experience an extraordinary cup of coffee to start your extraordinary day. 



Katie Tyler

Realtor®
BRE 01442453
c 530 277 1012 

Thursday, January 11, 2018

Tahoe Truckee Market Summary 2017

Tahoe Truckee Market Summary 2017


The Tahoe-Truckee regional real estate market provided perhaps its healthiest year in 2017.  A record number of transactions led to over $1.5 billion of total sales volume for the first time ever. This successful run was complimented by steady, though not excessive appreciation. 

1763 residential transactions eclipsed 2016 by 7% as families elected to make an investment in a mountain lifestyle at record volume. Prices appreciated by a robust 8% over this period to $855,161, inching ever closer to pre-recession pricing, on a foundation substantially stronger than a decade prior. 
  


Resort communities found consumers anxious for newer, well-designed homes within amenity-rich settings, and those communities saw exceptional growth with a 15% increase in transactions between $1,000,000 - $2,000,000. Conversely, premium product, $2,000,000 and above saw a slight dip in overall volume, likely the result of limited offerings after an exceptional 2016 run. Nevertheless, Martis Camp continued its sensational run with yet another year selling 40+ homes at values in excess of $4,000,000. The popularity of Martis Camp is all the more sensational given that average price within its gates has exceeded that of Tahoe lakefront properties for two consecutive years as qualified consumers opted for contemporary architecture and a direct connection to both Northstar and the Truckee airport. 




Perhaps sensing a value opportunity, lakefront property saw more homes sell at more modest prices than in previous years.

An exceptional winter in 2016-2017 led to predictable results within resort communities. The Village at Northstar saw a 75% increase in transactions while the Stellar Townhomes found a sweet spot selling out 10 residences within 6 months.

No communities better represented the demands of the consumer in 2017 better than Old Greenwood and Gray’s Crossing. Each community offers a distinct personality but share an elegant design standard combined with an unpretentious sense complimented by family-friendly amenities. A diversity of product introduced in 2017 including the Legacy Collection and Old Greenwood and Fairway Townhomes in Gray’s Crossing provided consumers with optionality of size, style and pricing that was very well received. The sister resorts combined to sell 71 total properties. 


Not every class of real estate was rewarded during this banner year. Vacant land languished in the face of rising construction costs as transaction volume dropped 8%.  Developers perceived diminished value in land offers given thin construction margins to the tune of a 30% reduction in average land sale price. While new custom home construction remains abundant at the premium end of the market, numerous development projects have been deferred until market conditions provide less risk.

As a result, 2018 opens with the lowest volume of inventory on record with just over 3 months’ supply; a fairly dramatic tilt in the seller’s favor. A likely result of these unique conditions may be a slower than usual first half of the year while consumers wait for the right property to come available. 

Nevertheless, conditions remain optimal for the continued pursuit of real estate in the region. As wealth and congestion grow unfettered in the Bay Area, the escape provided by time spent in the mountains becomes ever more precious.


Katie Ty
ler

Realtor®
BRE 01442453
c 530 277 1012 

Fun Ways to Eat & Drink at Northstar

Fun Ways to Eat & Drink at Northstar



There are always great options for food and drinks in Truckee like Pianeta for dinner, Old Town Tap for lunch and Alibi Ale Works for some good beer. While these places have great options every night, sometimes it’s fun to slip out of town and up to Northstar for a special night.
 
Art of MixologyThe Ritz-Carlton, Lake TahoeSundays – 4pm – 5pm
Manzanita Bar

Head up to The Ritz-Carlton, Lake Tahoe on Sunday nights for a cocktail class. Classes take place in the main bar at Manzanita restaurant. Nestled into the Northstar ski hill, views out to the slopes certainly enhance the setting of this event. The night is action packed experimenting with ingredients like freshly cut herbs, infused liqueurs and classic ingredients like whiskey and vodka. You will learn about and enjoy 3 unique cocktails and each is paired with appetizers. Enjoy!
 
Mountain Table DinnersNorthstar, CaliforniaJanuary 12, February 2, February 16, March 96pm – 9pm
Zephyr Lodge

The Mountain Table Dinners take place several times over the winter and are an event you will be thinking about all year. Experience the mountain after hours and the magic of Northstar in the evening. A ride on the Big Springs Gondola starts the adventure to mid-mountain where you hop on the Zephyr Gondola or a very unique “sleigh” ride pulled by a snow cat for the fresh air approach up the mountain. Dinner is hosted at the Zephyr Lodge with floor to ceiling windows looking out over the mountains as the sun sets. Get ready to cozy up for a night of locally sourced food and wine pairings. Each night features a highly distinguished wine representative from the California wine country like SIMI Winery, Rodney Strong and more. Elegantly crafted courses keep the night going, accompanied by live music and great wine, it’s time to sit back and enjoy.


Katie Ty
ler

Realtor®
BRE 01442453
c 530 277 1012 


Friday, January 5, 2018

Donner Summit Train Tunnels

Donner Summit Train Tunnels


Donner Summit, 7000 feet in elevation hovering just above Donner Lake, holds some significant California history. Home to where the first wagon train traversed into California, the fist transcontinental railroad crossed over and the fist transcontinental highway went through the Sierras. A hike through the abandoned train tunnels will reveal some of the remnants of the 1800's.


It was Theodore Judah who had the dream to conquer the Sierras by train. For many years he put his heart and soul into finding a path over the Sierras to create the country’s first transcontinental railroad. Despite all the granite walls blocking the way, Judah never gave up. In 1868, the first train passed through this stretch of tracks. Judah was not there on this day. Sadly, he died shortly after the groundbreaking from yellow fever. The mountain where the current train tunnels runs through is now named Mt. Judah in his honor. It was 1993 when the railroad company built a new line about 1 mile south of Donner Summit and used the old tracks and as much as they could for the new line.
  
Now, the tunnels have become a growing tourist attraction for locals and visitors. These tunnels provide hikers and visitors with an incredible opportunity to explore a remarkable, historic location. As you walk trough the tunnels, you will be in awe at the size of them, it’s not every day one gets to (safely) walk through a train tunnel. Most of the area has been taken over by graffiti artists but this adds to the uniqueness of the site. You could literally walk for miles along the old track path. The views are also worth the trip, Donner Lake and the landscape will catch your eye as you pop out of each tunnel.


There are many ways to access the tunnels. As you drive west on Old Highway 40 at the foot of Donner Lake, you will see the tunnels on the hillside on your left. You can park at the end of Rainbow Bridge and hike a short distance up to the site over the granite rocks. Another good access point is to park in the lot across from Donner Ski Ranch, you will see the obvious portal for the tunnel on the far side of the lot.
  

This is great activity option on those days when you want to take a break from the ski hill and the weather is still perfect for outside adventure. If you catch the tunnels in the right conditions, the icicles form perfectly spaced from gaps in the old boards.



Katie Ty
ler

Realtor®
BRE 01442453
c 530 277 1012