Tahoe-Truckee Market Update

Tahoe-Truckee Market Update

July, 2017 

Contemplating a year wherein sales volume is down nearly 6% and average price flat compared to prior year does not often foretell of a banner year. Nevertheless, at midyear, 2017 appears poised to top all 12-month periods in recent memory for real estate activity in the Tahoe Truckee region. 

An overwhelming winter artificially restrained activity for the first two quarters despite exceptional demand for resort property. As such, many purchases have been deferred to the latter half of the year which traditionally produces 57% of annual sales in a “normal” year.   

With interest in the region surging and inventory steady at a balanced 6-month supply, it is not a stretch to imagine an even more exaggerated bias to the latter quarters.

Despite challenging conditions, price ranges and neighborhoods traditionally associated with primary ownership have been pulsing with activity including a rarely seen phenomenon of multiple offers driving prices above asking in many cases. Such activity during “shoulder season” often foretells similar results for resort property during peak summer months and into fall. At midyear, median price has risen by 8% for the entire region; an exceptional metric given that the most premium real estate transactions are yet to come. 

While mountain resort properties saw a meaningful boost as winter’s grandeur became increasingly apparent, the real impact is likely to be felt in fall as consumers make decisions based upon the season to come.

  

In the meantime, Tahoe lakefront properties, the historical standard bearer for elite homeownership, are experiencing a return to preeminence after having taken a backseat to Martis Camp’s astonishing rise. A number of magnificent waterfront properties, both turnkey and raw land, have pulled the wealthiest consumers back to the Tahoe Basin.

While the performance of real estate will be subject to various economic cycles, the majesty of the mountains will remain immune. Time spent with family and friends enjoying a setting among the most beautiful in the world is a value that defies price. 

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012 

Tahoe-Truckee Market Update: August, 2016

Tahoe-Truckee Market Update

August, 2016 

Due to the large influence of second home buyers, the Tahoe-Truckee real estate market is one of extremes. July feels like the month when everything came together and the market hit the gas pedal in a meaningful way. 

As most of California recovered from the recession, Tahoe stabilized and experienced some gains but was slowed by subpar winter conditions that sapped certain market segments. While Martis Camp defied all measures of success, certain other communities languished having their buyer pool diluted by this success story.

July’s numbers suggest we may have hit a critical mass that was not seen during the recovery over the last 5 years. 148 transactions represent the largest number of trades in over 10 months and a 4% increase over the prior year. Similarly, average price jumped by 3% to $831,011. 

Most notably, the composition of high-dollar sales is indicative of a continued shift toward new and exciting resort communities. Of the top 10 sales in July, positions 2 through 7 were found in Martis Valley neighborhoods including 4 at Martis Camp from $3,825,000 - $5,200,000 and 2 in Mountainside Northstar’s Stellar Collection at $3,100,000 and $3,550,000.

Only 1 lakefront property, a Tahoe City estate for $5,675,000 eclipsed these mountainside homes.

Other communities showing marked velocity include Gray’s Crossing (2 sales at $1,475,000 and $1,490,000), Old Greenwood (2 sales at $1,400,000 and $1,445,000), Schaffer’s Mill (2 sales at $1,200,000 and $1,335,000), Vintage Northstar ($1,150,000 and $1,735,000) as well as a Constellation Residence adjacent to Ritz Carlton for $975,000.

It appears that this momentum will continue through the rest of the summer with 220 transactions anticipated to close in August alone. While statistically some will fall out and others be deferred, this is an exceptionally healthy rate of absorption for the local market. Notable among these pending sales are an opulent West Shore lakefront for $16,000,000 plus another 10 Martis Camp homes. Lahontan is showing increased velocity also with 3 homes currently pending. As well the most premium home in vintage Northstar is now in escrow at $3,750,000.

Despite the quickening rate of sales, inventory remains ample with nearly 9 months’ supply. In normal years, velocity will ramp up from now through October meaning the best may be yet to come for Tahoe-Truckee real estate.

We look forward to keeping you up to date as these strong market conditions continue.

Katie Tyler

Realtor®

BRE 01442453

c 530 277 1012