How’s the Tahoe-Truckee Market?

 

We are seeing historically low inventory. Some neighborhoods have just one or two homes being offered for sale. Currently 28% of our inventory is in escrow – this is very high for our area. Homes under $500k are down to an average of 44 days on market – this is 20% lower than last year. Homes between $700 – $1m average 127 days on market.

We have seen historic sales at the uber high end. Estates at $40,000,000 and $25,000,000 sold before getting a chance to hit the open market. The larger sale saw a 4 day escrow – amazing. There were multiple offers on a $37,000,000 property in Incline Village. There are other high-end listings which will trade this year. Currently, the highest price is Chase International’s listing for which I am a Listing Ambassador: Crystal Pointe, $75,000,000.

Interest Rates: The Fed’s quantitative easing program from 2008 is beginning a scheduled slow down. This makes interest rates increase. Two other factors could contribute to increased rates in the near future: Inflation is looming and future Federal Reserve Bank meetings – some economists are predicting 4 mortgage interest rate hikes in 2017. This will make it more expensive for many buyers to purchase homes as time goes on.

 

Spring 2018 vs. Spring 2017

2018: 93 Single Family Just Listed, Median List Price: $715,000

2017: 126 Single Family Just Listed, Median List Price: $759,000

2018: 52 Single Family Sold, Median Price $945,000

2017: 61 Single Family Sold, Median Price $690,000

37% Increase in Median Sold Price

 

The lake is .2 inches from the legal limit – man, what isn’t flowing around this area now?! We are firing on all cylinders…

 

2017 Recap: In looking at the entire Tahoe Sierra MLS market, 2017 ended the year slightly above 2016. Total sales of homes and condos were up about 7% with units at 1557 vs. 1452. Total market volume was up $100m at $1.383 billion. Also remaining almost exactly the same were average price ($888k) and median price ($604k). Days on market in 2017 was slightly down with an average of 82 days.

A Closer Look:

Single family home sales under $500k were down in 2017 from 336 to 260. Average time on market was 51 days – a slight decrease from the year before.

In the luxury arena, sales of homes over $1m were up slightly. An interesting note is that there are 10x as many luxury single family sales as there are luxury condo sales.

Tahoe lakefront sales saw a slight improvement. Tahoe Donner had a roughly 10% uptick in units and volume which came in over $200m. Martis Camp was slightly down in volume but the average price increased slightly to $4.4m. Northstar single family sales were in a similar boat to Martis Camp – the raw numbers are much lower but there was a similar decrease in volume and uptick in average price.

One area which saw significant improvement was the condo market over $500k. The number of sales and overall volume were up roughly 30%. I entirely sold out a brand new lakefront condo complex in 2017 with an average price of $1.14m.

Luxury market activity can often be neighborhood or niche specific. Generally speaking, and due to the nature of this resort area, Tahoe is in a par market with buyers and sellers on equal footing.

While Tahoe does not have the same level of sales as the Bay Area/Silicon Valley, the majority of our buyers come from there. So it is effective to use techniques that these consumers are familiar with. Much like successful Bay Area agents, I know how to implement pre-marketing techniques with the goal of creating a strong market around each individual property that I represent. As a luxury listing agent I am very accustomed to working with comparables where little data exists.

See my 2017 Mid-Year Analysis and comparison to 2016 at this link. Note the interesting significance of Martis Camp.

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“We are very happy with the deal, Alex. You made it happen and you are a hero.”

– Neil and Karen B. Sellers of 3266 Edgewater. Closed price $8,199,000. Record breaking lakefront sale in Dollar Point.

 

“We enjoyed working with you and will be in touch when we want to sell more property. Thanks again for getting it sold.”

– Bonnie and Ken. Forty-year Tahoe residents with multiple properties and businesses. Had previously worked with another agent.

I start from the perspective of doing what’s right for you and your property. I shoot straight regarding value and how we can maximize the sales price. I am known for creative, high-quality marketing and effective negotiations. I provide personal attention to both you and your property. I keep a foot on the gas throughout escrow. I attend appraisals for unique and high-end properties to ensure value is attained by the buyer’s bank. I watch the details. I use the best stagers, photographers, web developers and the finest print and online media. The end result is your property standing head and shoulders above competing listings and your sale happening efficiently. This is especially powerful when coupled with Chase International – Tahoe’s regional leader with nearly $1 billion in annual sales.

3266 Edgewater Drive. Sold by Alex for $8.199m, July 2015.

3266 Edgewater Drive. Sold by Alex for $8.199m

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Quick Market Data

For incredibly detailed, geographical market stats please visit this page on our site.

 

Tahoe Basin, single family and condominium sales

Year Total Volume # Homes Sold Ave. Days on Market Ave. Price Median Price
2017 $431m 475 78 $907k $620k
2016 $351m 408 101 $859k $555k
2015 $371m 434 106 $856k $535k
2014 $396m 346 101 $874k $511k
2013 $420m 307 107 $733k $471k

 

Truckee-Tahoe Donner, single family and condominium sales

 

Year Total Volume # Homes Sold Days on Market Ave. Price Median Price
2017 $443 656 49 $676k $594k
2016 $372 614 62 $610k $540k
2015 $312m 543 63 $575k $502k
2014 $282m 489 64 $577k $500k
2013 $314m 582 68 $539k $479k

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