Tahoe Truckee Market Update: June 2014

Tahoe Truckee Market Update

June 2014 

Tahoe Market Sees Robust Demand for Luxury Properties in First Half of 2014

Average Price Increases by 20%

Now two years into recovery, the Tahoe Truckee real estate market is surging, driven by an overwhelming push in the luxury segment.  Our consumers continue to be Northern California based families who are driving a remarkable rise in the technology sector and are now seeking refuge in a quality, mountain setting.

While sales volume for the total market lagged 14% behind 2013 year-to-date, the luxury segment (defined as properties $1 million and over) has shown a dramatic 28% increase. The overall market decline was largely due to the lack of available properties for sale earlier in the year.

                          Number of Luxury Transactions by Sale Price

Year		> $1mm	>$2mm	>$5mm	>$10mm
2006		228	71	9	1
2007		191	55	7	2
2008		162	51	7	1
2009		111	29	2	0
2010		133	43	8	2
2011		101	33	4	0
2012		134	54	8	4
2013		178	63	10	2
2014 ytd		102	43	4	2

Northstar Mountainside and Martis Camp have combined sales volume of nearly $100,000,000 year-to-date showing tremendous demand for new and unique offerings within immediate proximity to skiing and resort activities.

The overall region continues to show strong advances in median and average price through the first half of 2014 again driven by the upper tier sales. Average price has risen 20% from $687,144 in the first half of 2013 to $826,117 through June. 

The previously tight supply in neighborhoods below $1 million has created fewer sales but increased median value by 9% to $449,450.

As property owners perceive rapidly improving market conditions, ambitions for quick liquidity have created quite a few new sellers. In the past 45 days alone nearly 300 properties have been listed, lifting overall supply to nearly 10 months inventory.

4^th of July traffic was as robust as ever with a strong number of real estate inquiries that will ultimately manifest into sales later in the year. The Grand Opening of Tree House, the neighborhood clubhouse for Northstar Mountainside, offers an entirely new perspective on mountain living.  With a plentiful number of consumers, adequate supply of available properties and interesting new projects, it will undoubtedly be an interesting and active summer.

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

2014 Tahoe Truckee Market Update: May

Tahoe Truckee Market Update

May 2014

Luxury Sales Lead the Market in May

Sales of luxury resort property surged in the month of May with 23 homes selling for $1,000,000 or more. May is often a busy month as transactions entered into at the end of winter often close escrow during this period. And close they did with five Northstar properties trading, including another two sales of Home Run Residences above $2,400,000 plus another four properties in Squaw Valley from $435,000 - $853,000.  Martis Camp saw the sale of seven completed homes in May, including the highest sale ever published in that community for $7,050,000.  This home, sited near the ski slope and Alpine Lodge, combined with the recent sales success of Mountainside’s Home Run are strong indicators of an emerging premium for immediate access to the mountain and its activities, and an acknowledgment of the rising stature of Northstar as a world-class destination resort. 

 While Lake  Tahoe has been the principle draw to the region historically, a new generation of affluent consumers are finding the right fit for their families at Northstar. The opportunity to live luxuriously in the shadow of The Ritz-Carlton while engaging with nature in a setting conducive to quality time and activity with multiple generations is apparent. 

Average Price Increases

 Activity in the overall Tahoe region remained strong with 133 total transactions totaling $114,144,215, $20,000,000 more than the previous next best month year-to-date. While the total number of transactions exactly mirrors that same month in 2013, average price is 40% higher thanks to this overwhelming run of luxury sales. For the year, median price is up 16% despite a (previously) supply constrained market. 

As many potential sellers begin to realize that their home’s equity is nearing its peak value from 2006, the onslaught of new homes typical of spring has been magnified. 317 properties have come to market in the past 30 days alone bringing total inventory for the region up to 899. While this is far from an over saturated market, it does raise the supply to 7.5 months after hovering below 6 months for most of the past year. While many of these sellers are undoubtedly seeking irrational buyers through speculative asking price, the median asking price of all current inventory is only 2% above the median sales price for 2014; a strong indicator that the current velocity of sales should at least maintain at present levels. 

As we enter our summer season, one not dependent on any weather other than the predictably perfect daily high of 75 degrees, the region appears poised for greater success. Memorial Day Weekend, often a non-event for retail or transient activity based upon variable weather and school calendars, brought significant crowds and an earlier-than-usual start to the season. 

We hope you will find time to visit in the near future and look forward to keeping you updated on the dynamics of our market. 

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012