June, 2016 Tahoe-Truckee Market UpdateJeff Brown, June 10, 2016 in Market Update, Real Estate
As the Tahoe-Truckee real estate continues to hum along month after month with meaningful gains in transaction volume and average price, a number of other indicators are emerging to demonstrate stout confidence in our resort market. Namely, developers are reentering or recapitalizing to bring new product and enhanced offerings to the public.
The remarkable success of Martis Camp has been well chronicled over the past decade. In its wake, we are now seeing an echo effect whereby neighboring properties are able to draft on this success. The second developer of Schaffer’s Mill has done an excellent job delivering amenities including a clubhouse, pool and, newly, a restaurant facility to compliment an excellent golf course and beautiful, natural terrain. Success has followed through recent homesite and Mountain Lodge releases including 10 homes sales year to date.
At Northstar, Mountainside is now executing on a vision for a series of amenities including a yoga studio, ample hiking trails and an extensive play area spanning over an acre to compliment immediate slopeside access in winter.
At Old Greenwood, the master developer has brought 7 townhomes recently converted from fractional ownership to market with strong, early results. An application is pending with the Town of Truckee to create additional cabin style product of a similar character.
In addition to an explosive amount of custom home construction at Gray’s Crossing, a local developer is completing the vision for The Fairway Townhomes going all in with 12 new residences to flank five existing residences that have sat alone for nearly a decade.
The timing of these new projects may be spot on as market conditions continue to surge. May, 2016 saw a 7% increase on total residential sales over the same month last year to go along with a 22% increase in total sales volume and a 14% increase in average price. As is typical of the season, a number of these premium sales have migrated back to lakeside communities. Northstar closed 4 transaction greater than $1,000,000 including two sales in Mountainside and a an exciting sale in Great Bear Lodge in the Village at Northstar. Squaw Valley, Schaffer’s Mill and Gray’s Crossing each closed 3 premium properties along with one each in Lahontan and Martis Camp.
Perhaps most notable, a stronger-than-average Memorial Day has kicked off an early start to the typical summer shopping season. A West Shore lakefront is now pending for $16,800,000 just south of Sunnyside along with 5 Martis Camp custom homes, another two in Mountainside at Northstar and strong showings from Gray’s Crossing and Lahontan.
The summer promises to be active and dynamic. Undoubtedly, there will be much real estate trading hands at increasing values. We will also chart the progress of the many projects underway promising to deliver on a vision stalled by time and economic cycles that will continue the rapid maturation of our community.