Tahoe-Truckee Market Update
The Lahontan community has consistently maintained a high standard of construction through an enduring vision of a neighborhood, consisting of well-built, timeless homes. The quality of construction in many homes that were built 10+ years ago, as seen in the grand beams, solid timber, rock work and use of native materials, cannot be replicated today for a reasonable price. When these types of properties come on the market, often on premier home sites, it is easy to understand why buyers would jump at the opportunity to buy vs build.
The market in Lahontan has quietly been heating up. Awareness of the value proposition that Lahontan offers is rising, and savvy buyers are watching the market carefully for the right opportunities. Since July 1st, there have been 12 properties sold or pending in Lahontan (24 YTD) which represents a spike in market activity, considering there were only 16 homes sold in all of 2017. In 2/3 of the transactions since July 1st, properties went under contract in less than 30 days from list date and most closed at prices at or near list price. A new construction sale hit a high not seen in 10 years with a recent closing at $781/sf, and there have been 3 recent closings over $3M.
The upward trend in buyer activity in Lahontan has been largely driven by regional construction costs that continue to skyrocket. The build process and associated costs have become unreasonable for many who were looking to build on existing home sites. Finding a quality property under replacement cost in Lahontan is a compelling option, particularly if it is located on a premier home site.
With about 90 days left in the year and good inventory remaining, there could easily be 30 home sales total by years end which will solidify the resurgence of the Lahontan market.