A year ago, the average price of real estate in the Tahoe-Truckee region far outpaced the median price in a year which saw strong overall growth. This dynamic was driven by an exceptional sales volume in the luxury segment, largely within the many new luxury resort communities in the greater Truckee/Martis Valley region. These communities have tremendous appeal to the demographic of young, active families seeking quality experiences in the mountains of Lake Tahoe.
Throughout the first half of 2015, this story has inverted based upon factors outside of simple supply and demand. Median price has held steady while the total number of real estate sales have increased by nearly 10% compared to the same time in the prior year. However the average price has dipped along with the total dollar volume, indicative of a short-term decline in activity within the same luxury segment. A lackluster winter is the culprit, as winter visitation suffered due to less-than-ideal ski conditions.
Conversely, sales in primary home neighborhoods throughout the region have been stellar year-to-date. This is a fantastic beacon for the overall region as it indicates upward mobility for full-time residents driven by the surge of activity in new construction and resort/service positions.
With a soaring economy in our Northern California feeder market, purchase decisions have simply been deferred. As we start the summer shopping season, a cycle far less dependent upon weather variables, we anticipate seeing a surge of activity that ultimately accelerates volume and values well beyond last year.
Looking at a 10-year model, we see that the total number of sales will increase by 35% or more in the second half of the year.
With summer rental occupancy up by 21% year-over-year, it is easy to forecast a busy summer showing real estate.
Certain communities have carried momentum from previous years forward. Martis Camp continues to drive the upper-echelon of the market and is now over 90% sold out. Home values continue to solidify around $1,000 per square foot while land commands values upward of $1,000,000.
Lahontan has found its stride once more with over $20,000,000 in total sales already for 2015. Rounding out the neighborhood is Schaffer’s Mill, which continues to find a strong niche in this exclusive area.
Gray’s Crossing is fast catching up to these other luxury communities with new construction starting daily and 15 land sales already year-to-date. As new homes continue to get absorbed quickly after completion, the incentive for builders to invest in this community will only grow.
The fundamental values that drive homeownership in our region remain unwavering. The opportunity to spend time with family and friends in a setting that promotes wellbeing and relaxation will never go out of style.
We look forward to helping you find your perfect Tahoe experience.
Tahoe Mountain Realty