March, 2018 Tahoe-Truckee Market Update

A short month, during which a week is allocated to ski-related travel, often turns February into a hectic period for real estate sales. While the total volume of sales often drops, the premium segment of the Tahoe-Truckee market continues to thrive. This year the top end transactions in Northstar, Martis Camp, Old Greenwood and waterfront property on Lake Tahoe all transacted at extremely healthy numbers.

The winners of the season are, without question, savvy sellers taking advantage of laughably low inventory by coming to market now with extremely limited competition. Current sellers face less than 3 months’ supply across all market sectors; and just 3 weeks’ supply in prices below $1,000,000. 

Even premium price points, those above $1 million, are feeling the effects of limited inventory. Where balance typically exists at 1 year’s supply, current inventory offers just under 7 months.

A few specifics:

Gray’s Crossing   10 active listings           26 sales (past 12 months)  4.6 months’ supply

Old Greenwood      5 active listings          15 sales                              3.9 months’ supply

Lahontan               10 active listings          20 sales                              6 months’ supply

Martis Camp         20 active listings          44 sales                              5.5 months’ supply

Northstar               52 active listings          110 sales                             5.6 months’ supply

Two communities offer interesting case studies on the current phenomenon.

Lahontan, the trailblazing resort community, transacted a single home in the first half of 2017. At the time, Lahontan was shaking out a value differentiation for older properties versus updated homes. Year to date 2018, every home listed below $2,000,000 has been absorbed subsequently pushing momentum into higher price points that now show homes pending sale at $2,495,000 and $3,150,000. The 10 remaining homes range in price from $2,490,000 to $4,889,000.

In Tahoe Donner, the bell weather community for the Tahoe-Truckee region, more homes are currently pending than available listings; a previously unseen phenomenon that rewards those willing to shortcut the typical spring listing period. In fact, with conditions so heavily weighted against buyers, a seller wishing to leaseback or seek some other concession to extend time in their mountain home may be accommodated.

With new snow on the ground and market momentum building, the balance of ski season promises to be a busy period for real estate activity.

Katie Tyler

Realtor®

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2016 Tahoe Truckee Market Summary

2016 Tahoe Truckee Market Summary

For sheer volume, 2016 may have been the most productive year ever for Tahoe Truckee Real Estate. Numerous metrics exceeded all-time highs demonstrating the values of mountain living to be in increasing demand.

Total residential transactions eclipsed 1,600 for the first time since 2004 and showed a 15% increase over the prior year. The total volume of sales leapt a remarkable 26% eclipsing $1.3 billion for the first time ever and continuing a stretch of 4 consecutive years post-recession in which the region has exceed $1 billion. Average price improved by 9% to $833,019 while median grew 5% to $550,000. The latter figures represent the strongest results by category since 2006 and 2008 respectively.

As is often the case with a growing market, the wealth was not distributed equally. Certain segments dramatically outperformed as consumers’ tastes demonstrated a strong preference for new, highly-amenitized communities with modern design over more traditional mountain retreats.

Martis Camp, the epitome of those virtues detailed above, saw explosive growth with 49 homes trading at an average price of $4,325,000 concentrating 15% of the entire regions sales volume. 49 transactions are more than double the prior year and, perhaps more notably, double the quantity of lakefront homes sold on Lake Tahoe.

For generations, waterfront property on Lake Tahoe represented the apex of luxury for Northern Californians. While prime lakefront properties still trade at values greater than $10,000,000, obsolescence in the form of dated and dilapidated product has made the grandeur of Martis Camp and similar communities including Lahontan, Old Greenwood, Gray’s Crossing and Northstar more appealing; particularly in the luxury segment (> $1 million).

While these results are reminiscent of a decade ago, the trajectory appears to have much greater stability as debt remains modest, interest rates historically low, and inventory at its lowest ever to start a new year.

A robust real estate market has brought to life a substantial number of new development projects that promise to keep the region on the cutting edge architecturally. New, infill projects likely to come to market in 2017 include Northstar Mountainside, Old Greenwood, Gray’s Crossing, Kings Beach, Alpine Meadows, and South Lake Tahoe.

Tahoe Mountain Realty has enjoyed great success at the forefront of this shifting consumer trend. Having led a substantial number of transactions in each of Martis Camp, Lahontan, Old Greenwood, Gray’s Crossing, Northstar, and Squaw Valley in addition to Tahoe lakefronts, TMR’s ethos of delivering meaningful content and service continues to drive innovation throughout the region.

Katie Tyler

Realtor®

BRE 01442453

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2016 Tahoe-Truckee Market Update: October

2016 Tahoe-Truckee Market Update

October

The third quarter of 2016 was statistically the strongest 90-day period ever for real estate in the Tahoe Truckee area. 522 residential properties traded hands over this span representing just under $500 million in total volume at an average price of $893,000.

Similarly, year-to-date figures for the region through 3 quarters already exceed many 12-month periods in the recent past. Total sales volume has exceeded $1 billion for the fourth consecutive year exceeding annual totals from 2006-2013. The number of transactions exceeding $1,000,000, $2,000,000 and $5,000,000 already exceed 2015 totals.

Much of the region’s high dollar activity has been concentrated in certain resort communities, namely including Martis Camp which has consolidated an overwhelming 18% share of the local market, however nearly every segment has shown increased velocity.

Despite these exceptional figures, values appear to moving along steadily rather than surging with high volatility that could indicate a corresponding crash. Median price has risen a steady 5% year over year.

Unlike the bubble years of 2004-2006, this run seems to be built on a stronger foundation. Leverage is minimal with tighter lending regulations requiring stronger underwriting standards and generally higher down payments. Low interest rates, while not a primary driver of purchasing decisions for vacation homes, have made carry costs more affordable on a relative basis offsetting increasing purchase prices. 

Most notably, the economic conditions driving Tahoe real estate continue to be robust. Bay Area job growth has fueled the wealth creation integral to seeking and affording discretionary purchases like a home in Tahoe. Despite local prices being on the rise, values in comparison to many Bay Area markets are strong creating move-down opportunities for families looking to relocate and able to telecommute or otherwise generate income away from urban centers.

In addition to consumer driven purchases fueling the market, capital investors have taken notice of the demand for quality housing in the Tahoe-Truckee region. Last week, a $42.5 million deal was announced for developable land near the Heavenly base in South Lake Tahoe. Numerous other projects from Squaw Valley and Northstar to Kings Beach and Tahoe City are in the works hoping to deliver new, modern product to a thirsty population of consumers.

The 4^th quarter is often a quieter time of year with most resort consumers out of the region until ski season. With 262 currently pending with close dates scheduled prior to year’s end, it appears momentum will carry through the end of 2016.

Katie Tyler

Realtor®

BRE 01442453

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Martis Camp - 2016 1st Quarter Recap

Martis Camp 

2016 1st Quarter Recap

The first quarter of 2016 in the North Tahoe area has been differentiated from 2015 most visibly in terms of snow, which is clearly one of the most important variables impacting sales in the region.  The last few dry winters have given a baseline to compare seasons and the 2015/2016 winter will come to a close at 100% + snowpack. Regionally, sales are up about 15% from 2015, which makes sense in terms of snow, enthusiasm for the area, and increased visitation. 

Martis Camp has been an anomaly for a handful of years and has been able to defy market and snow conditions. However, in 2016 the numbers at Martis Camp are trending closer to the regional averages in comparison to 2015. Looking at the first quarter 2016, resale land transactions were almost even with 7 lots sold in 2015 and 8 sold in 2016 for the same time period. The premium sale this year was site 126 with golf/Northstar views and walking distance to the amenity core at $1.8M. 

Developer inventory is approaching sell out with about 13 homesites remaining. The prime resale sites that will command the highest prices will continue be those that are defined with great views or location in proximity to the amenities. The cost of construction is steadily increasing, and in many cases buyers will look to find a home that is already built vs. taking on a construction project.

There was an increase in single-family homes sales in 2016 with 10 homes sold in comparison to 7 in 2015 at this time. The average price/square foot of properties sold changed very little from 2015 ($1015/sf) to 2016 ($1,033/sf).  About 40% of the home sales in 2016 have been the efficient cabin properties in the sub $4M price point. The highest sale comp in 2016 is also the highest priced property ever to sell at Martis Camp at just under $7.2M.

Currently there are 27 homes available at Martis Camp. In 2015, the majority of the home transactions for the year took place after August 1st. If 2016 buying behavior is similar, expect to see some appropriate reductions from increasingly motivated sellers who want to attract buyers and prevent their listing from becoming stale.

With 24 resale homesites available, it would appear there is a wide range of buying options. However, there are only a few choices in the most sought after locations. Site 233 is in the cabin neighborhood near the Park Pavilion/Putting Course and is listed at $899K. Only 2 estate homesites are available near the desirable golf and amenity core area (Site 122 at $995K and Site 125 at $2.75M). 

More land and built inventory will come on the market as the prime summer season approaches. It will be interesting to see if the buying and selling trends at Martis Camp become more aligned with the region for the rest of 2016, or if they diverge as they have in the past. ​

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

The Evolution of Historic Downtown Truckee: Part 1

The Evolution of Historic Downtown Truckee: Part 1

Tucked between Trout Creek and the Truckee River running parallel to the Transcontinental Railway, Historic downtown Truckee is a wonderful place to spend an afternoon. There are many businesses, shops and restaurants that have been around for years and others that are just starting to make their mark.  Each unique building and storefront has it’s own story to tell.  Let’s take a glance at the evolution of Truckee’s Historic downtown business district.

At the Bar of America, most people know that the clever name came from the original use of the building.  Step inside and see if you can find the old teller windows and other hints of banking history. 

Next along was a favorite for many, the Irish pub and restaurant, OB’s Board.  Now divided into three spaces it houses the delicate cuisine of Restaurant Trokay, the jewels at Blue Stone and the chic clothing of Nomad Boutique.  Tucked in the back of Bluestone, see if you can find an old oven that was part of a bakery that pre-dates OB’s.  

Always a popular gathering spot, Pianeta Ristorante was once Truckee River Book and Tea followed by The Left Bank restaurant where a French chef brought Truckee residents new flavor well ahead of its time.  Take a peek inside to see the technical details of the artwork from highly respected and talented local artist, Pam Krone, on the walls and ceilings. 

Where once the locals shopped for every imaginable tool, nail, lightbulb and paint color, now you can find every pot, pan, spatula and teapot.  The very popular Roberts Hardware is now the Cooking Gallery.  

Tahoe Mountain Realty, formerly Tahoe Mountain Resorts Real Estate occupied present day Riverside Studios.  At the forefront of the resort community development, this was a beautiful showroom sharing the beginnings of what has now become the some of the most sought after properties in the North Lake Tahoe area. TMR now occupies the Icon building at Northstar and 2 other Truckee locations.
  
Stay tuned for more on looking back on how historic Truckee has grown, changed and become the charming commercial row that we know and love today.  

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

Tahoe-Truckee Market Update: February, 2016

Tahoe-Truckee Market Update

February, 2016 

Occasionally the dynamics of the Tahoe-Truckee real estate market are quite simple. Amidst the best start to winter since 2011, with arguably perfect ski conditions, the local real estate market is off to a raucous beginning of 2016. Though historically the worst month for closed transactions, January saw 82 sales at an average price of $918,745; increases of 8% and 5% respectively. These sales reflect pent up demand for mountain resort property and were acquired by consumers anxious to lock in their family retreat in time to enjoy the entire season. 

January was so strong that the total number of transactions equals the largest January in over a decade. Similarly, the average sales price reflective of premium resort property has not been seen this time of year since 2007.

Notable sales included 14 homes over $1,000,000. Among them were two Northstar homes doubling the number of premium single-family sales at the resort for all of 2015, three Martis Camp homes, and a lakefront on Tahoe’s West Shore for over $7,000,000. 

Following the North Lake Tahoe real estate trend, closed transactions most closely reflect market conditions 30-60 days prior when buyers and sellers reached agreement. As such, January’s results foretell a major return to prominence for ski resort property. Already this year there are 14 Northstar properties pending sale; nearly 25% of all 2015 sales. Indicative of the value that is now tangible in mountainside properties the average sale pending price is $1,174,046; a quantum leap from the average of $749,000 in 2015. Noteworthy sales in the coming month include two additional single family homes in Northstar’s Big Springs neighborhood for amounts greater than $3,000,000, a Stellar Residence in Northstar’s Mountainside community asking $3,100,000 and two Ritz Carlton Residences.

An additional five homes are now pending sale in Martis Camp, two in Lahontan and one each in Old Greenwood, Gray’s Crossing, and Schaffer’s Mill. 

Inventory will be an interesting metric to monitor as the year progresses. Supply is currently well balanced at just under six months. Typically inventory levels swell a bit this time of year as the sales cycle takes several months to gain momentum. With a sensational winter afoot, guests are anxious to replicate joyful experiences on the mountain several more times over the course of a winter. Some number of these consumers will elect to make a more permanent investment in mountain lifestyle.  Recent crowds may indicate that fewer options may be available for those who wait until later in the season. 

We hope that you are getting more than your fair share of winter. Please let us know when you intend to visit next so that we can share with you some new and progressive projects taking shape in our area. 

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

2015 Tahoe Truckee Market Summary

2015 Tahoe Truckee Market Summary

A perfect winter is underway and thriving economic conditions are setting up 2016 to be a monumental year. While much of the region has been on an upswing for several years, the series of dry winters have held certain areas from reaching their potential.

Despite weather challenges in the early months, 2015 was hardly a disappointment.   Real estate sales in the region surpassed $1 billion for the third consecutive year.  The total number of sales slightly eclipsed the prior year as did median price, which rose by 1% to $520,000.  Inventory remains almost perfectly balanced with 6 months supply available at the start of 2016. 2015 also marked the most significant surge in new home construction in over a decade with several hundred new starts throughout Martis Camp, Gray’s Crossing, Lahontan, Schaffer’s Mill and Old Greenwood.

Martis Camp continued to set the standard for luxury real estate as it marches ever closer to sell out. The average price for a completed home in Martis Camp has now surpassed $4,600,000, higher than the typical price of a Tahoe lakefront, the previous standard bearer for elite homeownership.

Gray’s Crossing experienced a major milestone as the final developer-owned lot was sold.  With all 377 homesites now in private hands the resurgence of this community is in full swing with nearly 100 new homes started in the past 3 years. A local investment group has begun construction on the final phase of Fairway Townhomes and will bring them to market in the Spring of 2016.

Similarly, Lahontan continues to find its place within a new generation of consumers. Homesite prices have continued to rise steadily as new construction has infused the community with a healthy new look.

Old Greenwood remains a steady producer with limited turnover. Look for the long anticipated release of The Legacy Residences from Old Greenwood in 2016.

Perhaps no other community was as impacted by successive dry winters as Northstar. This community has been poised for a major leap based upon substantial investment from Vail Resorts, Mountainside Partners and Kennedy-Wilson. Recent conditions have created a buying opportunity quickly realized through a stream of premium sales at the outset of 2016.

As the economy of Northern California continues to thrive, three generations of consumers are now drawn to Lake Tahoe as a place of retreat, refuge and adventure.

Tahoe Mountain Realty looks forward to 2016 as our inaugural year operating as an independently-owned brokerage company.  Our commitment to providing exceptional content, insight and service has only intensified. With new tools, an enhanced digital presence and the finest real estate gallery in the region, TMR is pleased to be your singular resource to a life well lived in Lake Tahoe.

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012