Only within the context for a surging real estate market can a month with 120 transactions and over $83 million in volume be considered disappointing. Both figures perfectly mirror the 10-year average for the month of August and certainly indicated a stout level of activity for the region.
August is typically the launch point for the busiest stretch of closed transactions in any given year. The summer sales cycle consistently begins around July 4th with a period of window shopping that ultimately culminate in closed transactions throughout August, September and October before trailing off heading into the holidays.
Demand for Tahoe real estate remains fundamentally strong. The Bay Area feeder market continues to thrive economically creating wealth for consumers whose sense of family and wellbeing instinctively bring them to our region many times every year. Visitation to the region has been exceptionally high this summer and we’ve benefitted from perfect weather and a notable absence of adverse conditions including smoke. Conversely, visitation was off substantially over the winter, which created a rather dry pipeline heading into the summer season and potentially elongating the sales cycle for many ski-oriented families.
This pattern is evident in the makeup of transactions in the month of August with 14 sales executed at prices greater than $1 million; exactly half the number from the previous year. These luxury consumers are most likely to be “retail” purchasers; those who will make a family-based buying decision while visiting the region.
Sales under $1 million, those more likely to be made by primary residents or value-shoppers, remain on par with a very strong 2014.
Recent talk of an El Nino winter is reviving interest in ski real estate at an astonishing rate. Judging by the overwhelming traffic at the various tent sales over a very busy Labor Day Weekend, demand for skiing is clearly pent up. As freezing temperatures have begun creeping into the late nights and early mornings, we will undoubtedly see renewed optimism for strong winter conditions and unbridled enthusiasm for a return to the mountain.
Tahoe Mountain Realty