2019 Mid-Year Lakefront Market UpdateTeddy Runge, July 19, 2019 in Market Update, Real Estate, TMR, Tahoe-Truckee
The number of Lakefront transactions spiked in the second quarter of 2019. Nine of the 11 sales happened in Q2, 19 after a slow start to the year. Historically Q3 represents the bulk of summer activity, but getting in early allows a great opportunity to choose the best inventory.
Thus far, eleven lakefront transactions recorded in the MLS at a median price of $4,300,000 or $2,128 price per square foot. Including a 6 acre estate with 7 + bedrooms, 400 feet of lake frontage, and an unbelievable setting for $37,000,000. This was the second highest transaction on the California side of Lake Tahoe in the past 5 years.
Although, the transaction total in the first 6 months of 2019 fell short of last year, price growth was extremely strong. The median price for the first half of the year was amongst one of the highest since 2015, up almost 15 percent from last year as indicated in the chart below:
Moving forward into Q3, we anticipate another busy quarter for the exclusive lakefronts. The market has begun to release more inventory with currently 16 active properties. Lakefronts are no exception to a buyer pool increasingly intolerant to dated mountain homes, but with little new construction for sale on the lake. It’s not uncommon for buyers to redevelop the existing structure at some point in the future, as land and pier values alone, makes it a worthy investment.