The Tahoe-Truckee real estate market kicked its year-long malaise during the month of August by posting nearly 200 residential transactions; easily the strongest month of 2017 and the second largest ever for the region by transaction volume.
Having trailed the preceding year by 3% – 8%, 2017 appeared to showing signs for a regional slowdown after a strong 6 years of steady climbing. Instead, volume leapt to a pace 6% greater than the same month in 2016 and 43% greater than July. Notably, Martis Camp had been performing at about 60% of its 2016 volume before pulling together 6 new home sales including a premium sale at $8,350,000. An additional 9 homes are currently pending sale in Martis Camp.
Lahontan, Gray’s Crossing and Schaffer’s Mill each saw multiple transactions as well.
Buoyed by these transactions, as well as three lakefront sales at both Donner and Tahoe, average price has crept back to within 1% of 2016 after having lagged by as much as 6% earlier in the year.
August 2016 began a 90-day run that was the most productive ever for the Tahoe Truckee region. Whether last month’s results are the beginning of a similar streak or a spurt of activity heading into a market correction is yet to be seen. With over 300 properties currently pending sale, it would appear the real estate market still has plenty of energy.
While the prolific winter of 2016-17 delivered abundant snowfall, it had a stymying effect on real estate given the challenge of navigating the region. As such, the benefit to real estate will be felt as attention turns back to winter property; a metamorphosis that typically occurs after Labor Day. Early indicators can be seen in pending transactions throughout Northstar Mountainside, Squaw Valley’s Painted Rock community and Alpine Meadows.
The end of Q3 will be revealing for the local real estate market. If demand remains robust throughout what is historically the busiest time of the year for real estate, we are likely to see strong results throughout the rest of 2017.