LAKE TAHOE, CA/NV – With overall sales volume falling short of the 2013 real estate boom, the Lake Tahoe / Truckee resort market statistics reveal an uptrend with sale prices continuing to inch back up while average days on the market are on the decline.
The Lake Tahoe market saw an overall decrease in the number of single-family home sales this year, a drop of about 13% over 2013. The drop in sales volume was mitigated by higher sales prices, just 2% below that of 2013. Incline Village saw the biggest drop in unit sales, with just 200 sales this year compared to 268 in 2013, a drop of 34%.
Average sales price increased in most areas, with an overall increase in average sales price of 10% around Lake Tahoe. South Lake Tahoe saw the biggest increase in pricing, with an increase of 26%. In all, the big wave of buyers who entered the market in 2013 waned somewhat in 2014, but pricing showed steady growth in most areas.
It should be noted, however, that Lake Tahoe and surrounding area market trends can vary dramatically from neighborhood to neighborhood. From non-lakefront condos to multi-million dollar lakefront homes, the wide range of real estate options and price points offered can result in significantly variable trends throughout Tahoe’s resort market.
In looking at the data, Sierra Sotheby’s agent David Hipkins says, “It must be emphasized that this is not an urban market, and that it is still driven principally by those with discretionary income. It is therefore unrealistic for us to expect to match the more frenetic, ebullient appreciation rates currently being experienced in markets such as the San Francisco Bay Area and New York City.” It’s still fair to say, however, that the market for lakeside and luxury homes in Lake Tahoe, Truckee and nearby Reno markets has rebounded soundly in 2014.
Much like our Bay Area feeder markets, the overall Tahoe / Truckee market continues to be defined by a lack of inventory, resulting in increased valuations across most of the region’s micro markets. With the exception of a few popular micro markets like Martis Camp (volume sold is up by 125% over 2013), Old Greenwood (volume sold is up 30% over 2013), Donner Lake (up by 26% over 2013) and Southwest Reno (up 11% over 2103) total transaction volume still remains below traditional levels.
It’s also important to recognize that pocket listings and non-reported sales can affect statistical real estate trends; further complicating informed choices for buyers and sellers. The Wall Street Journal, for instance wrote about the $20.35M dollar sale of Oracle billionaire Larry Ellison’s East Shore property in 2014 which was withheld from the local Multiple Listing Service (MLS). Most market data compilations (but not all) are pulled from the local MLS rather than from public record, therefore, based on how market data is compiled from one source to another, the statistics may not always be consistent. So it’s not a bad idea to consult a real estate professional specializing in that market to help dissect the information.
That said, Sierra Sotheby’s International Realty has compiled in-depth, year-end micro-market data with statistics broken down narrowly to help buyers and sellers navigate the different micro market trends in order to make better real estate decisions. Full micro market data visit http://tahoerealestatediary.com/micro-market-reports/
Local agents offered a quick snapshot of what’s happening in some the region’s different micro markets:
INCLINE/CRYSTAL BAY:
The Incline Village and Crystal Bay, Nevada market on the North Shore of Lake Tahoe continues a steady increase in pricing, although the number of sales is off from the exuberant pace witnessed in the turnaround during 2013. There were 451 sales in 2013 and 345 sales in 2014, a decrease of about 23%. Pricing for single-family homes rose to an average sales price of $1,336,006 (an 8% increase over 2013). Condos rose 6% to an average sales price of $501,005, excluding lakefront properties.
Luxury lakefront property sales were down this year, with only 8 lakefront homes sold compared to 14 in 2013. Sales prices were on par with 2013, with the median lakefront home price still hovering in the upper $6 Million range, including both direct lakefront and lake access properties. Four lake access properties with no direct frontage sold in the $2.4- $3.8 Million range, and four direct lakefront properties sold, ranging in price from $10,900,000 to $13,650,000.
Lakefront condo sales continued at a rapid pace, with 13 sales this year compared to 14 in 2013. Pricing increased slightly at 1% with a median condo price of $1,311,500 in 2014, although there were 4 sales in the $2 Million range, one in the upper $3 Millions, and a record setting sale of $6,725,000 for a double unit at Stillwater Cove.
"Lack of inventory in the lakefront market has hampered sales this past year," stated Lexi Cerretti of the Sierra Sotheby’s Incline Village office. "Lakefront condo sales peaked this summer and sold out in complexes like Crystal Bay Cove, leaving some buyers waiting for new listings to come up in the $1- $2 Million price range. Lakefront homebuyers are also waiting in the wings, looking for big lake views and privacy, with amenities such as sandy beachfront, deep-water piers and boat buoys. These amenities along with newer or remodeled homes will garner pricing in the $10 Million plus range, but there are very few properties that encompass all of these features."
TRUCKEE | TAHOE DONNER:
“2014 was actually one of the most stable years in recent memory in the Tahoe Basin,” says Truckee agent Anne Brooks. “Comparing 2013 with 2014 single family home prices are up 24% overall in the region and number of homes sold decreased 12%. We anticipate a higher number of new listings next spring, in part because homeowners have regained equity in their properties and are ready to test the market. Foreclosures and short sales have almost disappeared from our market and we look forward to a positive and equitable 2015.”
Truckee-based agent David Hipkins says, “The Tahoe Donner condo market reveals median prices up 10% with number of units sold up by 26%. Unsurprisingly, as the more modestly priced single family homes start to move away from both the first time home buyers and second home buyers on more of a budget, they are compelled to switch to condominiums and town homes. This trend in increasing unit sales will gently continue, as we expect the lower and middle priced single family home market segments to still remain robust – of note is that the latter part of 2014 saw a nice uptick in the number of higher end homes ($1 million plus) going into escrow.”
North Shore
Although the overall residential sales numbers have edged down, the year over year values for luxury and lakefront sales remains strong. Serious buyers are selectively looking for higher-end properties, and moving quickly when they find the right combination of features, including newer construction, access to a lakefront pier or sandy beach, or panoramic lake views for off-lake properties.
“The sales of lakefront homes dropped 4% from the year before, with the median price falling to $2.87 million, even as the pace of sales increased 50% from the year before,” observed Sierra Sotheby’s agent Jackie Ginley. “Lakefront properties on the West Shore saw a precipitous 31% drop, with the median price falling to $3.3 million. The lakefront homes tended to sit on the market longer than in 2013, while inland properties saw brisker activity than the year before.”
SOUTH RENO:
“2014 saw the local real estate market continue its recovery with both the Tahoe and Reno areas experiencing price gains,” says Reno-based agent Ryan Mitchell. “With Nevada's favorable tax environment, influx of new job producing businesses like Tesla’s $5 billion electric battery factory and overall improving economy, the future looks great. I expect 2015 to be very active across all price points.”
“Southwest Reno has continued to show us signs for a stabilized market,” says Sierra Sotheby’s International Realty agent Phil Reed. “We are still seeing the most activity in the lower priced homes, particularly in the Galena/Rolling Hills area, Old South Suburban area, and also some in Saddlehorn and Callahan—anything that is priced well and under $500,000 seems to move quickest, given the “sweet” spot for 80/20 confirming loan limits. There also seems to be a good demand for properties with more land or usable acreage priced under $500,000. The luxury market in Reno (as defined by price point over $750,000) has slowed significantly from Q1 and Q2, with the bulk of the activity in Saddlehorn, Fieldcreek, Old South Suburban, a few in ArrowCreek and a few in Montreux as well. Buyer’s visits have slowed proportionately as well. The ultra-high end (homes over $1.5M) has been the slowest moving in recent months. With five sales over $1.5 million, three of which were in Montreux.”
EAST SHORE
2014 year-end statistics for Lake Tahoe’s East Shore show a slowdown from the 2013 numbers. The number of units sold was down to 117 compared to 131 in 2013, a decrease of 10.7%. Overall, average sales prices were also down 10.7% compared to the previous year. In the single-family home sector the average prices were up for lakefront homes at $5,422,691, rising 7%, and down for non-lakefront homes at $852,185, an 11% decrease. Lakefront condo sales were down over last year, with 2 sales in 2014 and 3 sales in 2013. The average sales price in this category was $1,132,500 compared to $2,267,500 the previous year.
The highest recorded sale this year in that sector was $9,500,000 with median sales price up by 37%. It’s important to keep in mind that these figures don’t reflect sales withheld from the MLS including a $20.35M East Shore Lakefront. The East Shore offers a large geographic shoreline area, with a wide range of parcel sizes and pocket communities, and this diversity is often reflected in even more price variations within this micro market.
Overall gains were seen in the non-lakefront condo market. Although the number of units sold was off by 8% over the previous year, from 86 units to 79 units, pricing rose significantly. The average sales price was up 31% from $308,067 in 2013 to $404,679 in 2014. Glenbrook saw a record price for an off-lake condo/townhome at $2,465,000. Claudia Thompson of Sierra Sotheby’s Incline Village office stated, “Although there was slowing in this overall sector in 2014, the East Shore made gains over the rough years of the real estate market, and continues to offer excellent value to buyers.”
SOUTH LAKE TAHOE
In general, home values were up in almost every micro market in South Lake Tahoe this year with median home values in some areas up by as much as 29%. “It is such an exciting time for real estate here in beautiful South Lake Tahoe,” says Sierra Sotheby’s International Realty agent Jill Moffett. The lakefront market continues to be a bright spot in South Lake Tahoe as we saw lakefront home sales triple in 2014 over 2013 and median lakefront condo prices surged by 12% over last year. There is a renewed energy, rejuvenation and enthusiasm in South Lake Tahoe with the many new commercial developments and new homes that are starting to sprout up all over the California side of the Lake. We anticipate this will continue to contribute to increasing home prices.”
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