Like any real estate locale Tahoe is full of micromarkets. Examples include view properties, certain neighborhoods or attributes (ski-in, ski-out), and of course lakefront properties. My company has represented buyers and sellers of these cherished properties for decades so I know the trends. One of the most interesting has been the Rubicon lakefront market. If you’re not familiar with Rubicon, click here. To see all Rubicon properties currently listed for sale, click here.
In general 2011 was a pretty good year for lakefront sales. Total transactions were 23 (1 off MLS, Belleview Ave) totaling $68.5m with an average sale price of $3.115m. While 2 of these properties were in nearby Meeks Bay, none were in Rubicon which was pretty shocking. Over the winter of ’11/12 the Rubicon market collectively rethought values and in the spring of 2012 there were some re-entries which hit MLS at substantially lower prices. Coupled with a changing economy the timing was perfect: buyers noticed and there have been 4 sales since June. Sales prices range from $11 million (closed yesterday) to $2.8m and there are two incredible properties listed above $17m. And so as Rubicon lakefront sales picked up so did the entire lakefront market – current sales volume for lakefront property in 2012 is over $100m and by year-end could double 2011’s total.
As a group there are 6 more lakefronts scheduled to close before 2013. While lakefront properties are subject to larger forces (aka value reductions) when they rebound it’s a quick exercise. And this comes as no surprise especially since these are the most desirable properties in one of the most desired locations in the country.