Year End, 2016 Schaffer’s Mill Market OverviewMike Montalbano, January 18, 2017 in Market Overview, Real Estate, Schaffer's Mill, Trends, Truckee, Year End
In 2016 the Schaffer’s Mill (SM) community experienced growth for the third straight year. SM continues to attract families from far and wide, positioning itself for another huge year in 2017. As membership grows the introduction and completion of new amenities has created an improved experience for every member of the family. With neighboring Martis Camp about to sell its last remaining developer homesites and subsequently turn the club over to owner’s, there is likely to be impact on neighboring Martis Valley communities. This, the current inventory and market demand, and new amenity introduction should create the perfect formula for sustained growth within the SM community in the year to come.
2016 sales figures compared to those of previous years are quite impressive. Mountain Lodge sales consisted of both secondary market and developer offerings. In breaking down the cumulative totals, nearly double the amount of Mountain Lodges traded compared to single family homes. Compared to 2014 and 2015 on a year-to-year basis, the 14 Mountain Lodges trading in 2016 represent a 450% and 27% increase, respectively.
Single Family homes experienced a similar annual growth rate. In total, there were 8 homes trading and another 2 pending (2 transactions were done privately and not reflected in the MLS). The growth rates relative to single family homes over the same two-year period were 400% and 100%, respectively.
Over the past three years we’ve seen the pendulum shift from predominantly homesite sales in 2014 – 80% of total sales volume- to completed Mountain Lodges and/or homes in 2016 – 58% of total sales volume. Prior to 2016 just 1 home traded for +$2M. 2016 witnessed 3 homes trading above $2M, including the highest priced home sale in the development’s history at $2.315M.
When looking at Schaffer’s Mill’s history this make sense. SM’s initial success was via homesite sales. While some of these parcels were purchased by end users, there were also speculative builders securing land. 2016 marked the completion of these homes’ construction allowing them to come to market. 7 of the 8 homes trading this year were homes built “on spec”, including a secondary market sale by an owner “trading up” upon completion of her dream home.
Currently, only 3 single family homes are on the market. A handful of speculative homes are in various stages of construction, but not nearly enough to satiate a consumer base thirsty for move-in ready properties. Concurrently, Marlin Atlantis has scaled back their original Mountain Lodge construction plans. With limited opportunities to acquire fully constructed single family homes, I anticipate a divergent trend for 2017.
In the year to come I anticipate the pendulum to swing back with homesite sales outpacing all else. I also anticipate the savvy builder to recognize the current market’s scarcity and need to bring move-in ready homes to market. As future phases of the SM development are released these homesites represent some of the biggest and best within the entire community.
Neighboring Martis Camp is on the verge of selling out its final developer owned properties. In accordance with the master plan the DMB Highlands development group intends to turn over the club operations to its owners. Its logical to expect a positive impact on neighboring communities, including Schaffer’s Mill. SM has experienced success because of its proximity to Martis Camp and high value comparatively. With dwindling real estate opportunities at Martis, SM should be the direct benefactor.
The continued economic prosperity within Tahoe’s traditional feeder markets has ensured steady demand for real estate in the region. Lake Tahoe’s unique culture continues to emphasize the mountain lifestyle. Young families and their inherent foundational values has led to increased demand for the region. As demand for Tahoe properties surges and urban families seek an escape from the frenzied daily life, SM with its combination of resort community setting and functional amenities has positioned itself for another successful year in 2017.