Lahontan Market Update - 2016 Year in Review

Lahontan Market Update - 2016 Year in Review

 

Lahontan is by far the best combination of value, quality, amenities and overall setting in the Tahoe region. As the "original" gated resort community in the Tahoe/Truckee area, Lahontan over the years has maintained its identity and understated elegance. There has been a marked appreciation of both land and single home properties over the last few years. 2016 stats leaped ahead in home sales vs 2015, while also hitting price/sq foot highs specifically in new construction offerings.
 
The demand for new construction options in Lahontan is strong with few options for buyers to choose from. In fact, many new construction projects secure buyers before going to market. The Lahontan story in 2017 undoubtedly will be focused on new construction demand again, with many new spec options slated to be completed and ready for sale. Land prices remain extremely reasonable (and likely undervalued) in comparison to neighboring Martis Camp. 

In 2015, there were 15 home sales at an average price of just over $2M. The highest price/square foot sale recorded at $667/SF and there were only 2 new construction homes available for sale. One was sold in less than 30 days, one was sold prior to hitting the market.  In 18 land transactions, the highest priced sale was at $475K. Investors and spec builders were responsible for a good chunk of the land sales recognizing the huge need in the market for updated inventory.

Lahontan home sales jumped up by about 60% in 2016 with 25 single family home transactions. The average closing price was just above 2015 numbers at $2,025,000. There were 4 newer construction options in 2016, 3 of which achieved new heights on the sold price/square foot spectrum. All 3 closed over $700/sq ft and the most paid was $747/SF. The last time there was a comp anywhere near that high $/SF was in 2008.  Land transactions were up by 39% from 2015, with the highest comp at $455K. What continues to stand out is that price of a premium lot in Lahontan is half of what it would cost for an "average" site at Martis Camp. And this logic isn't lost on Lahontan consumers.
 
There is certainly still room to grow in the Lahontan market. For the quality of home and setting that can be found at Lahontan, properties are still undervalued. Anticipate an opportunistic market in 2017 for buyers, sellers, and contractors alike. The demand and absorption of new and updated construction will continue to drive Lahontan values up, and the available "new" inventory in 2017 should substantially increase. There is quite a bit of pent up demand specific to Lahontan and buyers will need to have a close pulse on the market to be ahead of game for the type of property they desire.

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012