During the first half of 2018 the Tahoe-Truckee region has seen an explosion at the highest reaches of the market with 66 properties trading at values in excess of $2,000,000; a figure that exceeds the 12-month total of 7 out of the last 10 years. Reduced supply combined with surging demand have resulted in slightly fewer sales at substantially higher prices, and conditions defining the performance of the market are satisfyingly linear.
The motivation of consumers seeking a lifestyle enhancement, whether as a primary or secondary home, in a beautiful mountain environment is easily understandable. With factors economic and cultural in alignment, the quantity of families making this quality of life decision has never been greater. In the simplest terms, there are generally more consumers in the marketplace than quality homes to buy.
Premium lakefront offerings, those that have been updated or rebuilt and sit on remarkably parcels of land, have led this charge with three sales topping $20,000,000 and another handful in play for the second half of 2018. Not far behind traditional lakefront estates on premium values but at the opposite end of design spectrum, is the continued phenomenon of Martis Camp. With new, modern homes and an unrivaled amenity package, home sales have doubled year over year while values reach to $8 million and above for select offerings.
Such robust activity is somewhat atypical of the season; particularly after a late-arriving winter. The second half of any given year will see nearly double the transaction volume of the first half. The current sense is that the only factor limiting this potential is restrained supply. Inventory levels have been hovering around 3 months’ supply for much of the last 12 months; approximately 50% below a balanced market. As spring typically brings new listings to market, we currently sit at a balanced 6-month supply. With the aforementioned interest piquing, conditions are ripe for a sensational last two quarters of 2018.
I look forward to being your go-to resource for navigating the dynamics of our unique marketplace.