November 2018 Tahoe-Truckee Market Update

According to the rhythm of Tahoe-Truckee real estate, October is typically the zenith for closed transactions in any given year.

2018 appears to have peaked out early with a massive month of August while otherwise following a generally traditional pattern. As has been the case for most of 2018, the number of transactions will lag the prior year slightly however average price is markedly higher driven by a huge volume of premium sales.

An average sale price of $1,050,213 for October reflects an increase of 26% over the same period in 2017. Median price was also up an impressive 14% year over year.

Unlike recent months where singular mega-sales have driven average price upward, October saw a steady flow of high-end sales including 4 residential transactions in Martis Camp from $3.6m to $7.3m, another 4 in Lahontan from $2.2m - $3.5m, and 9 transactions in Northstar as focus begins to shift toward winter mountain property.

At Northstar, the Mountainside community experienced the sellout of its Stellar Collection with the final on-mountain residence in two distinct enclaves sold out. This sets it up nicely for the release of Boulders, an ideally balanced project of elegant mountain homes starting at $2.2m.

With the end of summer came the final sales within the Legacy Collection at Old Greenwood. Within this community, the introduction of diverse product has proved stimulating with a record quantity of custom and multi-family homes trading at values not seen since before the recession.

Consistent with the figures present above, inventory remains slightly tilted in the seller’s favor at just under 5 months’ supply. This number is slightly elevated from the same period last year largely inflated by overly ambitious, and largely unmotivated, sellers.

Thus, we conclude the peak selling season for 2018 in fine fashion. While the market will remain throughout the entire year, there will be a taper through year end and into early January before winter closings pick back up. The economic landscape may look different 90 days from now however the fundamental elements that make Lake Tahoe homeownership rewarding will remain constant.

Katie Tyler

BRE 01442453

c 530 277 1012
ktlaketahoe.com

Truckee Pumpkin Patches

October is here and it’s time for pumpkins and Halloween.  There is plenty to do in Tahoe for the fall holidays.  Getting a pumpkin turns into a full day event when you attend one of these memorable events.  Celebrate the season and join in the family fun this month.  

Lil’Megs Pumpkin Patch

Beckwourth, CA

Every weekend in October

10am – 4pm 

This home town pumpkin patch is located on the farm where they are grown and harvested.  Meg and her father Tim host each weekend's events including a corn maze, various games and activities and the best bake sale you have ever experienced!  Don’t forget to choose a pumpkin, it will be hard to pick just one.  

8th Annual Fall Festival 

Tahoe Donner

October 14th, 11am

This annual harvest festival is a favorite.  Live music sets the mood for a fun filled day.  The pumpkin patch is just the start.  The kids will love the pony rides, a carnival area, bounce house, caramel apple decorating, pumpkin carving, face painting, trampoline bungee jump and adults can enjoy the barbecue lunch and seasonal beers.  

Fall Festival & Pumpkin Patch

Commons Beach, Tahoe City

October 17th, 10am 

Pick your pumpkin but don’t miss out on all the other fun with food, games, hay rides, petting zoo and much more! 

Truckee Elementary Pumpkin Patch

11911 Donner Pass Road

Truckee, CA 96161

October 28, 10am 

A local gathering and full of fun games and activities.  Come dressed up and pick out your pumpkin. 

 

Halloween Parade

Downtown Truckee

October 27, 4:30pm 

This is a classic downtown Truckee event. Start the night by trick-or-treating through the downtown shops and restaurants. Then, everybody will be called to the parade start and walk down the street as part of the parade. The kids costumes are great and they love being part of the parade. 

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

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

c 530 277 1012 

November, 2015 Tahoe Truckee Market Update

November, 2015 Tahoe Truckee Market Update

As the first snow of the season falls, the Tahoe Truckee community is abuzz with anticipation of the winter to come. In many ways, this early November accumulation already exceeds that of last winter and has buoyed spirits at a critical moment heading into winter. The Tahoe real estate market seems equally primed with exciting resort properties coming online to meet this renewed demand. Recent sales activity has been steady, if unspectacular, as if waiting for this snowfall to make a dramatic surge forward. 

Year over year, October was fundamentally even with 2014 in the number of transactions as well as average price. At 146 total residential sales, both years represent strong performances against historical trends. The chart below demonstrates that over a the past decade, October is typically the annual peak for the number of sales in a given year. While October 2015 trended slightly below a very robust September, it is well above the historical average of 134. 

The local market showcased an interesting phenomenon this past month. While sales units were generally consistent with the previous year, average price was down 4% from $769,000 to $738,000; reflective of the segment of luxury buyers missing from the market in the first half of 2015. Conversely, median price rose year over year from $511,000 in 2014 to $551,000; an 8% increase. 

Delving into these figures a bit more deeply, the range between $600,000 - $900,000 leapt by nearly double to 32 transactions in October. This would seem to indicate a new trend emerging in the local market. While many of these transaction represent our typical second homeowner purchasing in anticipation of the winter season to come, a new group of young families looking to move equity from their homes in higher-density, urban markets to a mountain community that promotes a  healthier standard of living. 

The $600,000 - $900,000 price range offers a level of comfort in the space between entry-level and luxury that is appealing to these professionals who identify as high-earners but are not yet wealthy (HENRYs = High Earners, Not Rich Yet). This emerging demographic is bringing professional-class jobs to the region transcending the typical mountain economy based entirely around service and trades. With significant spending power, this group is driving cultural innovations throughout the region including diverse education options, new and exciting dining choices and greater recreation selections that will help smooth out the seasonality of the local economy. 
Further, with seemingly limitless earning potential, this group is likely to find upward mobility in the coming years providing a continuous cycle of demand for property throughout the region. 

As we are now within weeks of opening the most anticipated ski season, perhaps ever, there is much to be excited about. I look forward to keeping you informed as the Tahoe Truckee region realizes its full potential. 

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012