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.