The Tahoe Truckee Real Estate Market saw continued momentum through the month of April bolstering what has already been a very strong 2013. While total sales dropped from a remarkable 142 in March to 101 in April, this can easily be attributed to a supply-constrained market. Nevertheless, 101 sales represent the 2nd strongest April in 8 years. Moreover, the average price per sale of $657,376 continues the trend of improvement month-over-month for all of 2013.
Median price in the regional market has improved 17% over the same period in 2012 while average price has improved an astonishing 34% thanks to the increased velocity of sales in the highest priced neighborhoods.
April highlights include 11 sales greater than $1,000,000 led by a $4,700,000 lakefront property in Rubicon Bay. Additional sales include a Martis Camp home sale for $3,495,000 ($1044 / square foot), Ritz-Carlton Residence #608 for $2,060,000 ($1099 / square foot), three Lahontan homes from $1,395,000 to $2,600,000, a Squaw Valley home for $1,885,000 and, surprisingly, three Tahoe Donner homes between $1,052,000 – $1,325,000.
Looking forward, May appears on track for even greater success in the luxury category. Three of Northstar Mountainside’s Home Run Residences will close by end of the month thanks to a surge of activity at the very end of ski season. Similarly, the first closings in Martis 25 will very quickly lead to ground breaking for at least two custom slope side residences.
Additionally, seven Tahoe lakefront properties are currently pending sale between $2,350,000 and $7,950,000. Another three Lahontan homes should close this month between $1,600,000 and $1,950,000 asking price.
While certain communities are facing a severe lack of inventory, the seasonal trend whereby properties come to market at the conclusion of winter appears to be playing out with 203 homes coming to market in the past 30 days. With buyers temporarily absent for the shoulder season, it would not be unusual for this inventory to accumulate for another 30-45 days before consumers return to the region en masse triggering a surge of real estate activity. It is interesting to look back on 2012 and observe that it was May when values finally turned in a consistently upward direction culminating in a very strong 2nd half of the year. While 2013 has been sensational year to date, it is easy to note a similar pattern emerging that could lead to an overwhelming second half, similar to conditions in the most active areas of the Bay Area.
There is no doubt that the market will be active in the months to come.