As promisted, here's my summary and review for the third quarter in North Lake Tahoe. It was record-breaking, with the highest number of transactions in a single quarter in the history of the North Tahoe Truckee real estate market. There were 535 properties sold, resulting in just under $500 million in transactions. This is a 28% increase over the third quarter of 2015. The average price for residences sold this quarter is $897,486, which is also up by 15% over this same period last year. Our third quarter performance has contributed to a positive year-to-date report. Our total sales volume has already exceeded $1.6 billion this year!
The addition of good inventory, low interest rates and overall confidence in the market have all been drivers for the market activity in Tahoe. The segment of our market most responsible for these impressive numbers is the luxury market ($1 million or higher). We have already sold more properties in this segment of the market than we did in all of 2015. Most notable is the activity in Martis Camp, which accounted for 18% of the total sales in our market. However, almost every neighborhood in north Lake Tahoe saw positive gains in sales volume and average price.
Some people have raised the concern that these numbers are indicative of another "bubble." What gives me comfort that we are not doomed again is the fact that our median price increase year over year is rising at a more normal rate of 5%. The gap between the increase in average price and median price is directly a result of the huge increase in sales volume in the luxury end of the market. More importantly, the properties are now being purchased with either cash and/or strongly vetted loans. The tougher lending regulations and scrutinizing by the banks make the loans today less leveraged and less likely to default. Additionally, the job growth in our feeder market (the Bay Area) continues to pump money into the hands of prospective vacation home buyers in Tahoe; and the indications are that this is not slowing down anytime soon. Furthermore, many of these Bay Area families are concluding that they can afford more in Tahoe than they can in their own primary residential neighborhoods. The telecommuting is also getting easier and easier, making a home in Tahoe a more realistic part-time residence for many Bay Area employees.
We are two weeks into the 4th quarter and the year-to-date momentum and optimism for a good ski season will fuel a strong finish to 2016. There are currently 293 properties in escrow for almost $200 million in additional sales. There's still a good selection of properties to choose from, and it's a great time to take advantage of low interest rates in order to secure your vacation home in time for the upcoming ski season. I look forward to helping you find the perfect property.
The Tahoe, Truckee and surrounding area real estate market performs quite differently from the national average. Market trends can vary dramatically from neighborhood to neighborhood. When you are contemplating the purchase or sale of a home, micro-market data from your neighborhood can make a big difference. Therefore, our Sotheby’s International Real Estate team has compiled a detailed report of the market by neighborhood. If you want to dive into more details for the market statistics, I have just the tool for you: Micro Market Reports.
To keep you as up to date as possible on the market, below is a quick update on the new listings and my Top Pick of the Week. Keep in mind that the listings noted below are only new listings in the last seven days. I can send you all current listings that match your criteria.
MY PICK OF THE WEEK Donner Lake Personal Favorite - This home was on the market a few years ago and I fell in love with it. It's back on and I'd be all over it if I were in the market. It's a killer lakefront home on Donner Lake. This property consists of a beautiful 3,000 square foot lakefront home, a 2-bedroom apartment above the 3-car garage, and three free-standing studio cabins. Talk about a great family compound and/or an outstanding rental property! (Rental history is available.) Enjoy breathtaking views from the great room and master suite. It’s located on the sunny side of Donne Lake and has its own pier and dock for your water toys and boats. Please buy this home so I can come visit by boat next summer! Click Here to View Property
Below is a breakdown of the new listings which came on the market in the last seven days. Please contact me if you would like to view all current listings that match your criteria.
NEW LISTINGS – HOMESITES
- Lahontan - one homesite: Click Here to View Listings
- Lake Tahoe Basin - three homesites: Click Here to View Listings
- Martis Camp - one homesite: Click Here to View Listings
- Tahoe Donner - three homesites: Click Here to View Listings
- Truckee Neighborhoods - 13 homesites: Click Here to View Listings
NEW LISTINGS – HOMES/CONDOS
- Donner Lake - three properties: Click Here to View Listings
- Lake Tahoe Basin – two properties: Click Here to View Listings
- Martis Camp - one home: Click Here to View Listings
- Northstar - one home: Click Here to View Listings
- Squaw/Alpine – one condo: Click Here to View Listings
- Tahoe Donner - three properties: Click Here to View Listings
- Truckee Neighborhoods - three properties: Click Here to View Listings
I hope this information is helpful. I am an expert in the second home luxury market of north Lake Tahoe and look forward to the opportunity to help you buy or sell your property.
I appreciate your referrals. If you have friends/family interested in selling or buying property in north Tahoe, please forward my newsletter on to them and let me know how you’d like me to follow up with them. Feel free to have them call me directly.
Best regards,
Breck OVERALL TAHOE REAL ESTATE
Because the big picture and every little detail count.
www.overalltahoerealestate.com
BRECK OVERALL
BRE#01760070
breck.overall@sothebysrealty.com
Cell: 530.318.3452
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