Martis Camp has been a fascinating and dynamic market since its inception nearly a decade ago. After weathering an untimely market downturn at the beginning of its lifespan, Martis Camp has emerged as the most successful and bullish community the Tahoe area has ever witnessed. With developer homesite inventory nearly sold out and the Club and HOA turnover from the developer to owners/members in progress, many are anxiously wondering what the next few years will hold for the community in terms of property values, operations, and sales moving forward. A quick analysis of the 2014 v 2015 numbers in home and lot sales may hold some clues as to what is to come.
In 2014, there was a deluge of speculative inventory in the market, particularly in the cabin neighborhoods. The community posted 36 home transactions which was the highest number of sales in Martis Camp history. In 2015, there were 22 single-family home closings, down about 40% from the prior year. However, year-over-year, the median sold price per square foot continued rise to an all time high of $1,043 in 2015. Overall in 2015, less spec inventory traded and properties stayed on the market for longer before selling, but sold at very high prices.
On the land front, the big story for 2015 was surrounding the dwindling developer inventory. Resale lot transactions more than doubled in 2015 (19) vs 2014 (8), with buyers having to dig deeper than what the developer was offering to find suitable properties. There were an impressive number of developer sales in 2015, but the pace of absorption was slower than in prior years. Resale inventory is currently very low with 17 sites currently available, and only 3 of those options are in the “amenity core” area. The developer has about 20 sites remaining to achieve full sell out.
With a stellar snow year underway, home sales should continue to click along at a decent pace. Demand for prime properties and homesites near the amenity core area will continue to be high, and those properties will have the best chance of holding value over time due to their prime location. Speculative building will likely continue to decrease as land options diminish. Some prospective buyers may sit on the sidelines to see if values abate, or choose to buy in areas like Lahontan, where the community is more established and the value proposition is high. Regardless, the success of Martis Camp has been incredible, and the community will continue to be one of the most sought after destinations for Tahoe homebuyers for years to come.
Comparative Analysis – Martis Camp