September, Tahoe-Truckee Market UpdateTMR Team, September 1, 2018 in Lakefronts, Markets, Martis Camp, Real Estate, Summer, Tahoe
The classics, traditional estate property along Tahoe’s waterfront, saw the fourth 8-figure transaction of 2018 following a trend toward ultra-premium second home sales in August. In all, five lakefront properties traded during this 30-day period including transactions of $2,900,000, $4,315,000, $7,000,000, $9,450,000 and $10,000,000. The latter two sales are found a block apart on Tahoe’s elite West Shore.
Not to be outdone, Martis Camp saw trades of contemporary homes for $9,000,000, $8,533,000, $6,750,000 and $5,850,000 during August. This brings year-to-date sales within this premium community to 32 at a robust average price of $5,179,302.
Since Martis Camp’s inception a decade ago, it has the Tahoe market by storm. The grandeur and quality of design have appealed to a new generation of consumers pleased to have a remarkable collection of family-friendly amenities within a self-contained community. Martis Camp brought with it a new class of housing stock with a decidedly modern flair that deviates from the traditional mountain design. For the intensely acute Bay Area feeder market, this innovative design has been appealing.
Tahoe lakefronts offer a more traditional form of luxury. With supply inherently limited, Tahoe lakefronts have been a badge of honor for wealthy Northern California families for over a century. While the housing stock has aged, onerous restrictions on redevelopment have limited full remodels (or tear downs) to a select few. Those properties that have navigated these regulatory challenges have found overwhelming value. Of the historical transactions over $20,000,000 60% have occurred in 2018.
Elsewhere, the Tahoe Truckee real estate market continues to flourish to the extent that supply allows. In August, total dollar volume grew by 3% year over year while the number of transactions dropped by 15% indicating the prevalence of high-dollar sales. Accordingly, average price rose 20% from $882,614 to $1,063,871. More accurately gauging the market, median price rose 3% year over year from $615,000 to $635,000.
While Labor Day is considered the traditional end to summer, it often marks the kickoff for peak real estate activity in the Tahoe region. Summer window shoppers merge with those anticipating winter to create 60 days of peak activity.
While inventory has increased to a more balanced 5.4 months’ supply, a substantial quantity of new offerings can be classified as ambitious; would-be sellers pushing asking prices to aspirational levels. Many of these lists will be on shorter listing agreements and will roll off market within 60 days in favor of ski leases or nightly rentals if a buyer is not procured. Whether consumers are willing to meet these aspirational prices will be telling for the overall trajectory of the local market.