TAHOE MOUNTAIN REPORT TRUCKEE/TAHOE MARKET OVERVIEW - 2019 YTD EDITION
OFFICE LOCATIONS
NORTHSTAR 3001 Northstar Drive Truckee, CA 96161
OLD GREENWOOD 12915 Fairway Drive Truckee, CA 96161
GRAY’S CROSSING 11406 Henness Road Truckee, CA 96161
530.550.2000 | info@tahoemountainrealty.com | tahoemountainrealty.com | BRE 01995145 | PO Box 3757, Truckee, CA 96160
TRUCKEE/TAHOE MARKET TRANSACTION VOLUME COMPARISON 1800 1600
1,634
1400
1,428
1,352
1200
1,488 1,377
1,252
1,746
1,620
1,412
1,079
1000 800 600
602
400 200 0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019*
AVERAGE SALES PRICE $2,000,000 $1,047,342
$1,000,000 $900,000
$821,430
$800,000
$832,540 $854,649
$966,452
$685,247
$700,000
$601,217
$600,000 $500,000
$759,693
$592,523
$562,538
$513,177
$400,000 $300,000 $200,000 $0
2009
2010
2011
2012
2013
2014
2015
w w w .TAHOEMOU N TAIN REALTY .c om
2016
2017
2018
2019*
OV E R V I E W – 2 0 1 9 * ( 6 M O ) E D I T I O N LUXURY MARKET OVERVIEW
SUMMARY
> $1MM
> $2MM
> $5MM
> $10MM
2011
101
33
4
0
2012
134
54
8
4
2013
178
63
10
2
2014
249
107
13
3
2015
202
73
17
1
2016
299
111
22
2
2017
346
105
23
2
2018
386
147
34
7
2019*
132
40
10
1
ACTIVE LISTING INVENTORY 4000 3500
3,346
3000
3,100
2500 2000 1500 1000
1,803
1,598
1,393
1,075 683
500 0
2009
2010
2011
2012
2013
2014
2015
766
2016
816 640 2017
495 2018
2019*
LAKEFRONT AVERAGE SALES PRICE $10,000,000 $8,000,000
$7,011,305 $6,152,917
$6,000,000 $4,000,000
$4,813,432
$4,641,795
$3,951,300
$3,579,860
$3,828,800
2013
2014
$4,456,79
$4,472,260
2015
2016
$4,176,939
$3,115,884
$2,000,000 $0
2009
2010
2011
2012
2017
2018
2019*
D a ta c ollec ted January – June 2 0 19. Data c o n tai n ed i n th i s r epo rt is from the T a hoe Sie rra B oa rd of R e a ltors. Infor m a t ion is d e e m e d r e lia ble but n o t g u aran teed . Co n sul t yo u r Tahoe Mounta in R e a lty B rok e r for m ore inform a tion.
MARKET NEWS Greetings – Through the first half of the year, 2019 has seen a continuation of the remarkable momentum for Tahoe-Truckee real estate that began in 2011. In fact, the first half of 2019 showed perhaps a greater resilience than anytime during the recovery. Tremendous snowfall in the year’s early months limited visitation to the region during prime winter weeks driving sales down 15% during Q1 compared to the same period in 2018. Q2 proved that demand for the region is irrepressible, catching up to within 6% of sales despite limited available supply. The early months of 2019 have been a model of consistency wherein average price has occupied a relatively narrow band between $900,000 - $1,100,000 in any given month. During the previous year, sporadic mega-deals from $5,000,000 $25,000,000 created a wide swath from $800,000 - $1,500,000. To date, the region is lagging in sales greater than $1mm by nearly a third. This is less an indication of waning demand than one of scarce supply. New product in amenitized communities remains the overwhelming preference of a buyer-pool increasingly intolerant of dated mountain homes. The ratio of premium homes ($1m +) sold in the Truckee region where newly constructed, contemporary homes are prevalent (Martis Camp, Lahontan, Old Greenwood, Gray’s Crossing, Schaffer’s Mill and Mountainside at Northstar) versus traditional, often functionally obsolete cabins in the Tahoe Basin continues to widen. Further, homes built prior to 2010 took nearly 50% longer to sell than those constructed in the last 5 years and 300% longer than brand new offerings. No community illustrates this disparity more than Lahontan where new homes sold for an average of $805 per square foot; a 41% premium over all other vintages. With listing inventory at its seasonal high, the market is almost perfectly balanced at 6 months’ supply. In the typical rhythm of Tahoe real estate, the second half of any given year will see 50% more transactions than the first six months. Given the impact of a heavy winter, we are likely to see an even more exaggerated conclusion to 2019. At the highest level, demand for property in Lake Tahoe is fueled by Northern Californians seeking easy refuge from intensity of daily life. The concept of a second home has taken on greater meaning as workplace portability grows ever easier. With fewer people constrained to physical offices Monday through Friday, the typical weekend getaway has elongated to a point where the mountain home may be considered a co-primary residence. Taken further, the Tahoe retreat functions less as a vacation home than, simply, the better part of any given week. As economic cycles come and go, the beauty of Lake Tahoe remains a constant through all seasons. At Tahoe Mountain Realty, we are fortunate and honored to have the opportunity to help you start your Tahoe Story. Best regards, Jeff Brown
General Manager Tahoe Mountain Realty
530.550.2000 | info@tahoemountainrealty.com | tahoemountainrealty.com | BRE 01995145 | PO Box 3757, Truckee, CA 96160