December, 2016 Tahoe-Truckee Market UpdateJeff Brown, December 5, 2016 in Election, Market Update, Real Estate, Tahoe-Truckee
November, 2016 was a notable month for many reasons; most larger than Tahoe-Truckee real estate activity. Nevertheless, the month produced a historical number of real estate closings. 142 transactions are the most for any November period on record, which continues an unseasonably strong 4th quarter. By contrast, 132 residential transactions occurred in November 2014 and 125 in 2015.
Recognizing that this data is indicative of market conditions 30-45 days past when these originally contracted, election-related volatility is not reflected. Studying newly pending sales over the past month in comparison to the same period a year ago, the market appears on a continued ascent but for a very minor blip during Election Week:
The composition of these transactions has followed a seasonal trend as premium sales resulting from peak tourist activity swoons ahead of ski season. With no lakefront property or Martis
Camp homes trading, average price dropped to $671,302; nearly a third below peak summer months. Median price remained steady at $560,000 delineative of a greater volume of primary and sub-premium transactions.
15% of all transactions in November may be classified as “luxury” having exceeded $1,000,000. Of these, nearly half were found in ski communities including Squaw Valley, Alpine Meadows, Northstar and Sugar Bowl signaling a shift toward winter product typical of the season.
December and January are typically the quietest months of any year as retail activity in November and December is minimal. The chart above indicates that it is likely for these months to outperform historical averages. Early snow, a strong economy, and perhaps some urgency relative to rising interest rates are driving showing activity during an otherwise quiet period.