Lahontan Q3 2018 Market UpdateMike Montalbano, October 23, 2018 in Market Update, Real Estate, TMR, Tahoe/Truckee
An inside look into Lahontan Golf Club
Over the past 5 years Martis Valley’s original private gated community has experienced 91 total property trades. With an average of 18 homes changing ownership per year, 2018 year-to-date has been a banner year. Total trades, Median Price, Average Price, Total Sales Volume, and Average Days on Market suggest a high value proposition correlating with heightened interest in the community.
Over the same 5 year data set 26 properties have traded during the July – September months. 2018 Q3 saw an impressive 7 homes transact, a 75% increase from Previous Year. Historically, Q3 activity represents 29% of annual activity. Home sale activity during this quarter in 2018 represents 30% of the YTD activity, right in line with past trends.
2018 Q3 did see consumers opting for more premium homes, as evidenced by the 22% increase from the historical $2M Median Price. Lahontan home owners have opted for the most luxury of options, with 3 homes trading in excess of $3M, including a benchmark $4.1M masterpiece at 605 EJ Brickell. We must go way back to 2005 to find another year with as many trades in this segment of the market.
Despite the increase in activity year over year, Median Price was down 8%. Average Price, on the other hand, saw a slight uptick from PY, up about .8%. Considering the 2017 metrics this is nothing to scoff at. Compared to historic averages, 2018 YTD pricing is up more than 7%.
Since Lahontan’s opening golf round back in the late 1990s Average DOM is 202. In more recent years this number has dropped to an Average DOM of 132. Even more impressive is the 2018 YTD DOM, at a meager 94 DOM, a 53% improvement from the historical average. Regardless of the predictable Tahoe seasonality, the market in Lahontan is overriding these trends.
As a discretionary market North Tahoe viewing and purchasing opportunities are realized during defined periods of the calendar year. For various reasons summer property tours and upcoming winter enthusiasm leads to October contracts. This long sales cycle correlates with homes accumulating more Days On Market than those in a primary home market.
Only 2.5 months remain in the calendar year. With 1 home pending and just 14 active listings Lahontan is poised to surpass its most active year in history – 2016 – with 24 property trades. New construction projects are in various phases and as values remain high compared to other private golf course communities new ownership opportunities will emerge in early 2019. Despite whispers of a “softening market”, Lahontan charges ahead defiantly.