A short month in a supply-constrained market will typically lead to a reduced number of transactions as was the case with February, 2013. However, 28 short days did not dampen the surging luxury real estate market in the Lake Tahoe area.
To quantify, February saw 66 total residential transactions, down from 83 in January (the inverse of typical market trajectory) and 12 fewer than the same month in 2012. With overwhelmingly little compelling inventory available in most communities, deals are very competitive leading to a 4% increase in average price from the same time last year.
While properties on the Nevada side of the lake are not factored into our monthly calculations, several notable purchases transacted in February that warrant mention. Three lakefront properties sold above $10,000,000 including an East Shore estate for $20,000,000. Last week’s Wall Street Journal details transactions in Incline Village of $10,500,000 and $11,875,000. These sales are spectacular at any time but even more remarkable given the winter season is typically soft for lakefront activity. Similarly the California side saw two strong lakeside sales of $2,200,000 and $1,280,000.
In total, 8 properties traded above $1 million including one sale in each of Martis Camp, Lahontan, Tahoe Donner and the first Residence within The Ritz-Carlton, Lake Tahoe. More significantly, 29 properties are currently pending sale above $1 million including 4 lakefront properties from $3,650,000 – $7,950,000, one Martis Camp home for $3,100,000, a signature property at Old Greenwood for $2,499,000, and two single-family homes at Northstar for $2,395,000 and $2,495,000.
Showing and offer activity is robust, particularly around Northstar, as consumers enjoying ski season have begun to make purchasing decisions. The greater Northstar Mountainside community including Home Run, Martis 25, and Ritz Residences appear poised for breakout sales activity in the coming weeks. All indications show very strong reports for March and April providing a sizable base to what is shaping up to be stellar 2013 for the Truckee Tahoe region.
I’m looking forward to sharing great results with you in the coming months.