In reviewing the performance of the Tahoe-Truckee resort real estate market through the 3rd quarter of 2014, the driving sentiment seems to be one of anticipation. The regional market has been on a steady upswing since 2012 and continues to show little volatility compared to much of the previous decade.
Similarly, the total number of real estate transactions has declined year-over-year but remains robust when compared to historical performance.
Demand for the region remains robust based upon a number of factors that have recent media-gained attention. An article recently published on MSN.com makes the point that resort towns have been strong investments for the ultra-wealthy citing strong appreciation; a 5.9% increase in value for the top resort towns globally and 13.3% for those in North America.
Tahoe has outperformed both statistics with 16% appreciation year-over-year.
Why Tahoe flourishes alongside high-profile destination areas including Vail, Park City and Aspen is easily understood when looking at the high-caliber Northern California communities that most frequently supply our consumers.
Forbes Magazine recently published the “List of America’s Most Expensive Zip Codes” and California provided 38% of the Top 100 entries. In fact, the Silicon Valley enclave of Atherton claimed the title of the single-most expensive zip code in the country with the current median asking price of $9.03 million.
The article goes on to explain that Atherton and other neighboring towns offer proximity to the area’s tech start-ups and biggest companies including Apple, Facebook, Google and Oracle. These young executives and their families are drawn to Tahoe as their sanctuary. It remains to be seen which technology titan will grab the recently listed Shakespeare Ranch in Tahoe’s Glenbrook neighborhood (contributing to its status as the #31 most expensive zip code in the country).
As we look toward winter, anticipation is piqued for the winter we deserve. The first dusting of snow earlier in the month brought a surge of social media activity that clearly indicates a longing for a great ski season. The 4th quarter will undoubtedly also see a surge in activity as we launch into winter.