2017 Q3 Lahontan Market UpdateTeddy Runge, October 13, 2017 in Market Update, Real Estate, TMR, Tahoe/Truckee
Lahontan is one of the most sought-after communities in Truckee. It’s established, well managed and offers a comforting ambiance beyond the private gate. After a slow start to the first quarter, the Lahontan market has now experienced two consecutive quarters of average sales price growth. In Third Quarter 2017, Lahontan had significantly less transaction volume verses 2016, however it posted a 26% average sales price increase.
Challenged by resale inventory, buyers turned to new development and bigger sized properties in numbers significant enough to boost prices overall. But more aggressive pricing and the lack of good low-priced inventory also generated some buyer resistance; the average days on market for sold properties increased by almost seven weeks compared to a year ago.
Following the most recent inventory peak in the Second Quarter 2017, inventory subsequently declined through the summer and spiked again late Third Quarter 2017 to about 25 listings. In order to meet the demand for sales in Lahontan, transactions appear to be discounted about 4% off list price. And new development properties are becoming more common as buyers gravitate toward modern design.
However, buyers seeking contemporary and new might find some ambiguity and confusion, as there is a wide price per square foot gap between vintage and new construction. The current median price for new construction is nearly $710 price per sq. ft. and the vintage median is around $575 price per square foot. So my advice when looking at this market is to be sure to compare apples to apples to insure you are making the right choice and understand the true value.
Visit our Q3 2017 landing page for market updates on all of our core communities.