Northstar California had an impressive year for real estate transactions in 2017. The volume experienced has only been surpassed, in terms of units sold, in the pre-recession market of 2005, during the introduction of the first phase of The Village upgrades. The state of the market in 2017, unlike 2005, displayed an adjusted, median sales price hovering around $700k compared to the $1.3M mark 12 years prior, when properties were largely sold to speculators at $1,000 sq/ft. After the initial downturn in the economy, housing prices slowly returned to fair market value showing a steady, not exaggerated increase year over year.
The Northstar neighborhoods with standout performance in 2017 were The Village condos, the ever-evolving Mountainside community, and the ripe-for-renovation and aptly priced, vintage condo developments. 36 units traded within the 30+ year old condo/townhome inventory. Specifically, the Indian Hills townhomes, with a 3 bedroom, 2 bathroom, plus loft, floor plan, generated 13 sales in the last 12 months at a median price of $450k, a 7% increase in value from 2016.
The Village condos saw an impressive 73% increase in units sold compared to 2016’s transactions. The limited supply of larger residences created downward pressure on median pricing as six, one bedroom condos transacted; more than any year since 2005.
The Stellar Townhome collection, located in Northstar’s Mountainside community, boasted 10 sales over the calendar year, reflecting the demand for alternative product to The Village, and single-family residences at Northstar. Modern design, zero maintenance, and year round, family friendly amenities make the Mountainside communities an attractive option for perspective buyers.
The slight decline in single-family home sales was likely due to the increased availability of older, condo/townhome inventory towards the bottom of the Northstar market, and the convenience of newer, turnkey options at Mountainside.
Heading into the first quarter of 2018, the real estate market at Northstar continues to weigh in favor of the seller. The current inventory is limited to 37 active listings, and 5 pending sales, equating to approximately a three months supply. The shortage in second home product will likely cause values to increase, as demand for a home-base in the Tahoe/Truckee region remains high amongst affluent Northern California families, and the growing tech industry population in nearby Reno, Nevada.