2013 Market Review SummaryJeff Brown, January 23, 2014 in Market Updates, Real Estate
Truckee-Tahoe Market Achieves $1 Billion in Sales
If 2012 was the year of stabilization for the Tahoe-Truckee real estate market, then 2013 will be remembered as the rebound year. The market saw the strongest demand for Lake Tahoe property in nearly a decade, with total sales topping $1 billion for the first time since 2005. Median and average prices grew by 15% and 16%, respectively, and total transactions reached 1,480, a 4% improvement over 2013.
This rebound was largely driven by the flourishing demographics of the Northern California feeder market, but was also impacted by the introduction of premiere new communities and the resurgence of certain luxury markets. Highlights included:
- Mountainside community at Northstar which surpassed $100,000,000 in historical sales as consumers became aware of the hyper-unique lifestyle afforded by ski-in/ski-out, on-mountain living. The combination of Martis 25, Home Run Residences, Constellation and The Ritz-Carlton Residences sold over 20 residences for more than $35,000,000 collectively.
- Martis Camp continued its exceptional trajectory approximately 100 total sales. Tahoe lakefronts saw a shortage of inventory in 2013 (after a remarkable surge in 2012 sales) that resulted in fewer transactions but strong upward pressure on prices.
- Homesites in Gray’s Crossing and Lahontan experienced a 271% increase in transactions over last year and property values were up by 50%
So, what’s in store for 2014? With an increasing sense of stability for employment and interest rates, this momentum should carry over into 2014. The market will be constrained by a lack of quality inventory. While this could lead to slightly decreased figures for transactions and overall volume, it should have an upward effect on values.
Spending time with family and friends pursuing healthy and fun activities in this remarkably beautiful setting will never go out of style. Certainly, economic conditions may fluctuate, but interest in the Tahoe lifestyle will never diminish.