January, 2017 Tahoe-Truckee Market UpdateJeff Brown, January 5, 2017 in Market Update, Real Estate, Tahoe-Truckee, Trends
For sheer volume, 2016 may have been the most productive year ever for Tahoe Truckee Real Estate. Numerous metrics exceeded all-time highs demonstrating the increasing demand for mountain living.
Total residential transactions eclipsed 1,600 for the first time since 2004 and showed a 15% increase over the prior year. The total volume of sales leapt a remarkable 26% eclipsing $1.3 billion for the first time ever and continuing a stretch of 4 consecutive years post-recession in which the region has exceed $1 billion. Average price improved by 9% to $833,019 while median grew 5% to $550,000. The latter figures represent the strongest results by category since 2006 and 2008 respectively.
As is often the case with a growing market, the success was not seen equally in all segments. Certain sections dramatically outperformed as consumers’ tastes demonstrated a strong preference for new, highly-amenitized communities with modern design over more traditional mountain retreats.
Martis Camp, the epitome of those virtues detailed above, saw explosive growth with 49 homes trading at an average price of $4,325,000 concentrating 15% of the entire region’s sale volume. 49 transactions are more than double the prior year and, perhaps more notably, double the quantity of lakefront homes sold on Lake Tahoe.
For generations, waterfront property on Lake Tahoe represented the apex of luxury for Northern Californians. While peak lakefront values still reach heights greater than $10,000,000, obsolescence in the form of dated and dilapidated product has made the grandeur of Martis Camp and similar communities including Lahontan, Old Greenwood, Gray’s Crossing and Northstar more appealing; particularly in the luxury segment (> $1 million).
While these results are reminiscent of a decade ago, the trajectory appears to have much greater stability as debt remains modest, interest rates historically low, and inventory at its lowest ever to start a new year.
A robust real estate market has brought to life a substantial number of new development projects that promise to keep the region on the cutting edge architecturally. New, infill projects likely to come to market in 2017 include Northstar Mountainside, Old Greenwood, Gray’s Crossing, Kings Beach, Alpine Meadows, and South Lake Tahoe.