October, 2017 Tahoe-Truckee Market UpdateTMR Team, October 2, 2017 in Lahontan, Market Update, Martis Camp, Northstar, Real Estate, Tahoe, Truckee
September 2017 was impressive for both quality and quantity of transactions delivered in the Tahoe Truckee region.
September is typically the peak of real estate closings in any given year and the last 30 days supported this with vigor. The market delivered the first ever back-to-back months with over 200 residential closings as well as the first month to ever crest $200,000,000 in sales volume.
The average sales price crested $1,000,000 in September, the first month to exceed this threshold since March 2014. Median price held steady with the year-to-date value of $599,000.
Driving this sensation period were a remarkable 56 purchases above $1,000,000 led by a $7,000,000 North Shore lakefront listed by Tahoe Mountain Realty. After lagging behind the previous year’s results, Martis Camp posted a robust 7 residential sales driving $31,000,000 in total volume. Within the same neighborhood, Lahontan saw its two most expensive purchases of the year at $2,700,000 and $2,950,000.
The approaching winter, evidenced by a thick blanket of snow delivered in the final week of September, drove interest in on-mountain sales including a $3,360,000 sale in Northstar’s Stellar Residences as well as numerous luxury purchases in Alpine Meadows and Squaw Valley.
Perhaps counter intuitively, a large number of September sales were driven by price reductions. Particularly in a seller’s market, consumers seem to anticipate a certain tolerance, or lack thereof, for offers substantially below asking price. Rather than offer what a consumer perceives to be market value, they will most often take no action on a property perceived to be overpriced. Confirming that the early year malaise may have be attributed in part to ambitious sellers, the end of summer often brings motivation for sellers to find market value.
In September 37% of sellers had reduced price at least once as the average asking upon selling was 3% below the original list price. Final sales price was another 3% below final asking price. Interestingly, those who did not have to reduce price before receiving an accepted offer (stated differently; those who priced accurately initially) yielded 1% more than those who were compelled to drop asking price.
October is typically the last strong push for real estate sales in the Tahoe Truckee region as consumers finalize purchases in anticipation of the winter to come. With more snow in the forecast, mountain resort community sales are likely to see strong activity in the very near terms.