Gray’s Crossing 2018 Year End Market UpdateChris Fajkos, January 17, 2019 in Gray’s Crossing, Market Update, Real Estate, TMR, Tahoe/Truckee
2018 demonstrated an uptick in value for Gray’s Crossing properties, with nearly every indicator showing well defined growth. Gray’s closed the year with 17 transactions representing $22,995,500 in total sales. The average home price increased 2.4% from the previous year to $1,352,000. I should note that the 2.4% appreciation coincides with what many leading housing economists, real estate experts, and market analysts predicted for 2018 and for the year to follow. Median price per square foot increased 4.2% to $457. Although total sales lagged compared to 2017, this can largely be attributed to limited inventory and Buyer hesitation brought on by Q4 stock market turbulence.
So what is driving Gray’s Crossing’s continued success? Perhaps the simplest answer is how far your dollar can stretch here.
Lot sales for 2018 improved from the previous year, despite elevated construction costs stemming from labor costs and the international tariff war effecting commodity prices, namely steel. Regardless of these factors, builders continue to develop new product, banking on the continued success of the Bay Area economy, which represents the primary feeder market.
Transactions from 2018 continue to suggest that Buyer’s expect to get a great deal on a new Gray’s home. Of the 17 sales, 10 went under asking, 4% on average. The remaining sales consisted of 3 homes going for slightly above asking and 4 landing right on the button. With a consistent role out of new inventory, and national economic trends becoming more apparent, I would suspect that this phenomenon continues, despite the current softening of the Truckee – Tahoe market.
So what is driving Gray’s Crossing’s continued success? Perhaps the simplest answer is how far your dollar can stretch here. With a relatively low entry price point, compared to other regional luxury developments, Gray’s provides an almost obvious alternative to dated inventory in and around the Lake Tahoe Basin. Whereas $1.5M will get you a 30 year old home with only partial views of Lake Tahoe, that same budget will provide a brand new home with exceptional amenities and in a centralized location. Of the 5 premier luxury communities in Truckee, Gray’s Crossing provides the lowest price per square foot for a premium luxury product and Buyer’s recognize this value (others being: Martis Camp, Lahontan, Schaffer’s Mill, and Old Greenwood).
Looking ahead, 2019 will surely be another stellar year for Gray’s Crossing. With impressive new builds on the way, the Tahoe Mountain Club under new ownership, any lingering doubts as to the continued viability, value, and enjoyment of Gray’s Crossing has most likely been put to bed.