Tahoe-Truckee Market Update: September, 2017

Tahoe-Truckee Market Update

September, 2017 

The Tahoe-Truckee real estate market kicked its year-long malaise during the month of August by posting nearly 200 residential transactions; easily the strongest month of 2017 and the second largest ever for the region by transaction volume. 

Having trailed the preceding year by 3% - 8%, 2017 appeared to showing signs for a regional slowdown after a strong 6 years of steady climbing. Instead, volume leapt to a pace 6% greater than the same month in 2016 and 43% greater than July. Notably, Martis Camp had been performing at about 60% of its 2016 volume before pulling together 6 new home sales including a premium sale at $8,350,000. An additional 9 homes are currently pending sale in Martis Camp.

Lahontan, Gray’s Crossing and Schaffer’s Mill each saw multiple transactions as well. 

Buoyed by these transactions, as well as three lakefront sales at both Donner and Tahoe, average price has crept back to within 1% of 2016 after having lagged by as much as 6% earlier in the year.

August 2016 began a 90-day run that was the most productive ever for the Tahoe Truckee region. Whether last month’s results are the beginning of a similar streak or a spurt of activity heading into a market correction is yet to be seen. With over 300 properties currently pending sale, it would appear the real estate market still has plenty of energy. 

While the prolific winter of 2016-17 delivered abundant snowfall, it had a stymying effect on real estate given the challenge of navigating the region. As such, the benefit to real estate will be felt as attention turns back to winter property; a metamorphosis that typically occurs after Labor Day. Early indicators can be seen in pending transactions throughout Northstar Mountainside, Squaw Valley’s Painted Rock community and Alpine Meadows.

The end of Q3 will be revealing for the local real estate market. If demand remains robust throughout what is historically the busiest time of the year for real estate, we are likely to see strong results throughout the rest of 2017.

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

October, 2015 Tahoe Truckee Market Update

Tahoe Truckee Market Update

October, 2015

After a series of ordinary months, the Tahoe-Truckee region saw the strongest performance of 2015 in September. Total sales volume of $118,376,000 is an 18% increase over September, 2014 despite coming via 5% fewer transactions. This would indicate a substantial jump in average price from $706,989 in 2014 to $870,412this month. 

The primary drivers of this surge at the upper reaches of the market were five Martis Camp home sales totaling over $22,000,000 in sales volume. At an average price of $4,862,500 and nearly $1,000 per square foot, it would appear that momentum within the region's bell weather community remains strong. From a statistical perspective, the increasing number of homes being completed and sold in Martis Camp will continue to drive numbers higher. For comparison, in September, 2014 just one home sale in Martis Camp was published creating an $18,000,000 variance in total dollar volume for the region. 

Nevertheless, luxury sales above $1 million surged with 34 transactions, nearly double the amount from a year ago. Beyond Martis Camp, Northstar posted its highest sale of the year at $3,500,000 for a single-family home in the Big Springs neighborhood complimented by two newly pending purchases in the Ritz-Carlton. Squaw Valley also kicked off some year-long rust with just its second $1 million sale of the year. As is typical of the season, lakeside properties contributed 20% of these transactions though none higher than $3,350,000. Schaffer's Mill closed a new Mountain Lodge residence in addition to two single-family homes continuing a similarly strong year for that young community. 

Broadening the lens to the 3rd quarter of 2015, the market performance appears fundamentally steady with the prior year. Total sales increased by 1%, median price increased by 6% while average price decreased by 2% indicating an upswing in primary home purchases while luxury sales lagged slightly. Sales above $1 million were even with the prior year while concentrated somewhat at the lake and within resort communities. Gray's Crossing and Lahontan showed increased momentum while Martis Camp, Northstar, and Schaffer's Mill remained steady. 

Heading into the 4th quarter, hope springs eternal for a bounce back winter. A chart tracking consumer optimism for winter conditions would consistently feature a peak value right around this time as days grow shorter and freezing temps creep in daily. As such, purchases in anticipation of winter should increase over the next six weeks before a typical taper heading into December and January. Resort inventory is as compelling as ever with competitive offerings from Mountainside to the Village at Northstar and beyond. 

We look forward to keeping you informed as winter draws near. 

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

Tahoe-Truckee Market Update - September

Tahoe-Truckee Market Update

September 

Only within the context for a surging real estate market can a month with 120 transactions and over $83 million in volume be considered disappointing. Both figures perfectly mirrors the 10-year average for the month of August and certainly indicated a stout level of activity for the region.

August is typically the launch point for the busiest stretch of closed transactions in any given year. The summer sales cycle consistently begins around July 4th with a period of window shopping that ultimately culminate in closed transactions throughout August, September and October before trailing off heading into the holidays. 

Demand for Tahoe real estate remains fundamentally strong. The Bay Area feeder market continues to thrive economically creating wealth for consumers whose sense of family and wellbeing instinctively bring them to our region many times every year.  Visitation to the region has been exceptionally high this summer and we’ve benefitted from perfect weather and a notable absence of adverse conditions including smoke.  Conversely, visitation was off substantially over the winter, which created a rather dry pipeline heading into the summer season and potentially elongating the sales cycle for many ski-oriented families.

This pattern is evident in the makeup of transactions in the month of August with 14 sales executed at prices greater than $1 million; exactly half the number from the previous year. These luxury consumers are most likely to be “retail” purchasers; those who will make a family-based buying decision while visiting the region.

Sales under $1 million, those more likely to be made by primary residents or value-shoppers, remain on par with a very strong 2014.

Recent talk of an El Nino winter is reviving interest in ski real estate at an astonishing rate. Judging by the overwhelming traffic at the various tent sales over a very busy Labor Day Weekend, demand for skiing is clearly pent up.  As freezing temperatures have begun creeping into the late nights and early mornings, we will undoubtedly see renewed optimism for strong winter conditions and unbridled enthusiasm for a return to the mountain.

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012