Occasionally the dynamics of the Tahoe-Truckee real estate market are quite simple. Amidst the best start to winter since 2011, with arguably perfect ski conditions, the local real estate market is off to a raucous beginning of 2016. Though historically the worst month for closed transactions, January saw 82 sales at an average price of $918,745; increases of 8% and 5% respectively. These sales reflect pent up demand for mountain resort property and were acquired by consumers anxious to lock in their family retreat in time to enjoy the entire season.
January was so strong that the total number of transactions equals the largest January in over a decade. Similarly, the average sales price reflective of premium resort property has not been seen this time of year since 2007.
Notable sales included 14 homes over $1,000,000. Among them were two Northstar homes doubling the number of premium single-family sales at the resort for all of 2015, three Martis Camp homes, and a lakefront on Tahoe’s West Shore for over $7,000,000.
Following the North Lake Tahoe real estate trend, closed transactions most closely reflect market conditions 30-60 days prior when buyers and sellers reached agreement. As such, January’s results foretell a major return to prominence for ski resort property. Already this year there are 14 Northstar properties pending sale; nearly 25% of all 2015 sales. Indicative of the value that is now tangible in mountainside properties the average sale pending price is $1,174,046; a quantum leap from the average of $749,000 in 2015. Noteworthy sales in the coming month include two additional single family homes in Northstar’s Big Springs neighborhood for amounts greater than $3,000,000, a Stellar Residence in Northstar’s Mountainside community asking $3,100,000 and two Ritz Carlton Residences.
An additional five homes are now pending sale in Martis Camp, two in Lahontan and one each in Old Greenwood, Gray’s Crossing, and Schaffer’s Mill.
Inventory will be an interesting metric to monitor as the year progresses. Supply is currently well balanced at just under six months. Typically inventory levels swell a bit this time of year as the sales cycle takes several months to gain momentum. With a sensational winter afoot, guests are anxious to replicate joyful experiences on the mountain several more times over the course of a winter. Some number of these consumers will elect to make a more permanent investment in mountain lifestyle. Recent crowds may indicate that fewer options may be available for those who wait until later in the season.
We hope that you are getting more than your fair share of winter. Please let us know when you intend to visit next so that we can share with you some new and progressive projects taking shape in our area.
Best regards and happy skiing,