Lake Tahoe real estate sales continue to be in strong as July saw 134 residential transactions, the second highest number of closed business for any month in 2013. The total transaction volume at $79,135,295 is right in line with the previous summer months indicative of strong and steady demand.
Median price remains on a consistent upward trajectory at $452,450; a 3% increase over the same period in 2012. The average price of $590,562 represents a slight drop from the previous two months though still a substantial increase over the early part of 2013 and all of the preceding four years.
Standard seasonal trends for the North Lake Tahoe market appear to be playing out whereby luxury buyers tend to shop during the peak summer months and buy heading into Fall.
The chart above shows monthly fluctuations in average price by month over an eight-year span. Logically, we will see a surge in values and dollar volume as contracts written in July and August begin to close over the next 30-60 days. After a quick drop, there is often another surge prior to the holidays led by winter resort properties.
While plenty of marquee properties closed escrow in July including 16 above $1,000,000, August and September appear primed for a significant jump with 251 properties currently pending sale. Among these are: the last 4-bedroom residence in Phase I of Home Run found Mountainside on Northstar at an asking price of $2,395,000; a rare Squaw Valley slope side property for $9,500,000; Tahoe lakefronts priced at $2,195,000 – $9,495,000, an Old Greenwood golf course home at $2,599,000 and two Lahontan homes around $2,000,000.
Showing/touring activity throughout the region continues to be robust in all market segments foretelling a strong 4th quarter, which is also supported by the strong results experienced year-to-date. Tourist activity throughout the region has been above and beyond any year in recent memory (Sierra Sun article detailing strong retail sales here: http://tinyurl.com/kqz6wao).
Unlike many Bay Area communities, the Tahoe market has ample inventory to satisfy the surging demand. 902 active residential listings equates to 7.5 months supply; a number slightly in favor of the buyer (at least until the Labor Day buying frenzy absorbs a significant amount of this inventory).
While these figures are all great benchmarks of a vastly improved housing market for the Tahoe area, perhaps no one indicator is a greater beacon of optimism than construction. Residential permit applications are up dramatically in both the Town of Truckee and Placer County, and new residential starts appear to be popping up, particularly at Gray’s Crossing where lot sales have been on a remarkable trajectory in 2013. Most significantly, within Northstar Mountainside Residences, construction has started on the final eight homes that comprise Phase 2 of Home Run and on Tree House, the new year-round recreation Clubhouse for Mountainside families. Joining them is the first custom ski-in / ski-out home at Martis 25 with another two homes anticipated to break ground this year.
Summer seasons in Lake Tahoe are short and intense. As schools return to session in the coming weeks, focus will return to winter activities and property. There will undoubtedly be quite a bit of activity to report from Northstar and the surrounding area. I look forward to keeping you up-to-date as events occur.