Tahoe Market Sees Robust Demand
for Luxury Properties in First
Half of 2014 – Average Price Increases by 20%
Now two years into recovery, the Tahoe Truckee real estate market is surging, driven by an overwhelming push in the luxury segment. Our consumers continue to be Northern California based families who are driving a remarkable rise in the technology sector and are now seeking refuge in a quality, mountain setting.
While sales volume for the total market lagged 14% behind 2013 year-to-date, the luxury segment (defined as properties $1 million and over) has shown a dramatic 28% increase. The overall market decline was largely due to the lack of available properties for sale earlier in the year.
Number of Luxury Transactions by Sale Price
| YEAR | > $1MM | > $2MM | > $5MM | > $10MM |
|---|---|---|---|---|
| 2006 | 228 | 71 | 9 | 1 |
| 2007 | 191 | 55 | 7 | 2 |
| 2008 | 162 | 51 | 7 | 1 |
| 2009 | 111 | 29 | 2 | 0 |
| 2010 | 133 | 43 | 8 | 2 |
| 2011 | 101 | 33 | 4 | 0 |
| 2012 | 178 | 63 | 10 | 2 |
| 2013 | 178 | 63 | 10 | 2 |
| 2014 YTD | 102 | 43 | 4 | 2 |
The previously tight supply in neighborhoods below $1 million has created fewer sales but increased median value by 9% to $449,450. The overall region continues to show strong advances in median and average price through the first half of 2014 again driven by the upper tier sales. Average price has risen 20% from $687,144 in the first half of 2013 to $826,117 through June.
Northstar Mountainside and Martis Camp have combined sales volume of nearly $100,000,000 year-to-date showing tremendous demand for new and unique offerings within immediate proximity to skiing and resort activities.
As property owners perceive rapidly improving market conditions, ambitions for quick liquidity have created quite a few new sellers. In the past 45 days alone nearly 300 properties have been listed, lifting overall supply to nearly 10 months inventory.
4th of July traffic was as robust as ever with a strong number of real estate inquiries that will ultimately manifest into sales later in the year. The Grand Opening of Tree House, the neighborhood clubhouse for Northstar Mountainside, offers an entirely new perspective on mountain living. With a plentiful number of consumers, adequate supply of available properties and interesting new projects, it will undoubtedly be an interesting and active summer.
