August, 2017 Tahoe-Truckee Market UpdateJeff Brown, August 8, 2017 in Gray’s Crossing, Lahontan, Market Update, Martis Camp, Old Greenwood, Real Estate, Tahoe, Truckee
Prior year comparisons would indicate that year-to-date production for the local real estate market has been sluggish. Indeed, 6% fewer residential sales have transacted year-to-date leading to an 8% reduction in total real estate volume when compared to the first seven months of 2017.
A deeper examination reveals that, while certain pockets of the market have hit saturation, the majority of the region continues to thrive. While average price has dropped slightly over this period from $849,000 to $827,000, median price has surged ahead by 10% from $539,000 to $595,750.
Rising median price contrasted with a slightly diminished average price indicates more homes selling in lower price points. Translated, primary neighborhoods have outperformed resort communities showing strong demand for full-time homes, investment properties and perhaps, a more modest lifestyle.
For example, Tahoe Donner, the common denominator community combining primary and second homes, has sold 6% more homes at 5% higher prices than the same period last year. Martis Camp, a phenomenon that has driven the local market to new heights in recent years, has sold 36% fewer homes taking almost $50 million in sales volume out of the market compared to last year.
The combined performance of Gray’s Crossing, Old Greenwood and Lahontan show an identical performance to last year at the same time having sold 28 homes at an average price just above $1,500,000.
Reasons for this shifting dynamic are many; tight inventory creating fewer selections for consumers, a general shift toward more conservative second home purchases or, perhaps, saturation of qualified purchasers for the most expensive local offerings.
July, 2016 began what may have been the most prolific 90 day period for real estate sales ever in the Tahoe Truckee region. While 2017 may not live up to these lofty standards, we are undoubtedly headed toward another sensational Q3 by historical standards.