Spring has delivered its typical confusing weather to the Tahoe region, supplying one of the most significant snowstorms of the year followed by an extended run of perfect, 70 degree days. With the closing of ski season and oncoming of golf, hiking and biking season, a shorter-than-usual transition period appears imminent.
The Tahoe – Truckee real estate market has not missed a beat with a flurry of sales activity in the month of April. In total, 93 residential properties closed escrow producing $64,878,510 in sales volume. The luxury segment continues to be in high demand with 16% of total sales coming from the $1 million and above price segment.
With the rapid economic growth of our Northern California feeder market and their unyielding desire for a retreat in a beautiful environment, the fundamentals of Lake Tahoe Real Estate are nearly as strong as they have ever been. The introduction of communities that cater to the changing demographics of our consumer continue to thrive as evidenced by four sales within Northstar Mountainside including three Home Run Residences ($1,800,000 – $2,205,000) and another Ritz –Carlton Residence ($2,750,000). With two additional sales pending, Home Run has just four homes remaining. Similarly, The Ritz-Carlton Residences are now past the halfway point in sales.
Martis Camp produced two sales of “cabin” properties in April from $2,960,000 – $3,000,000 and continues to have steady stream of homesite sales and construction starts on new luxury homes.
While 93 sales represent a slight decrease from the same month in 2013, this is easily attributed to the scarcity of available property for sale. In fact, 93 closings nearly mirror the 9-year average for transactions in April.
The first quarter of 2014 saw explosive growth in values; an increase of 30% year over year based upon a remarkable run of sales within elite-tier properties including Tahoe lakefronts and top quality resort homes. While values continue to rise, the overall market is showing a statistical regression to the mean as more low and middle-tier homes come on the market and quickly sell. In April, the average sales price of $695,000 represents a 7% increase over the same month in 2013. Median price has improved 17% over the previous 12-month period.
This “normalizing” is neither negative nor unexpected. Current inventory for the overall market is a perfectly balanced 6-months supply, a slight increase over the previous months- which is typical of the period immediately following ski season. When segmented by price, inventory below $1,000,000 has just 4 months stock. This short supply allows luxury sales to carry an even greater weight in representing the performance of Lake Tahoe Real Estate.
Steady progress is forecast for the coming months with 187 properties pending sale at a median asking price of $452,850. This is nearly identical to the April median sales price which was led by a number of lakefront properties ranging from $3,150,000 – $7,900,000 in addition to the Home Run sales mentioned above. The expiration of ski leases and changing of seasons often results in increased listing activity. Spring arrived sooner than usual this year, prompting this cycle to begin early.
A glorious summer is in the making, whether measured in miles of trail or real estate sales. Tahoe Mountain Resorts will continue to be your resource for all things Tahoe.