Archive for January, 2016

Lake Tahoe Real Estate Report 2015

Friday, January 15th, 2016

Sothebys-Realty-at-NYSE

Sierra Sotheby’s International Realty Ends The Year With a Closing Bell: 2015 Year-End Market Report

Sierra Sotheby’s International Realty closed the year on a high note as Philip White, President and Chief Executive Officer, was joined by other members of the Sotheby’s International Realty network atop the podium at the New York Stock Exchange to ring the December 29 Closing Bell. The event celebrates the company’s 40th anniversary in the luxury residential real estate brokerage business.

“I am very proud of the journey we have taken together with our global luxury real estate network to bring the brand where it is today,” said White. “The Sotheby’s International Realty brokerage network was built to connect the finest independent residential real estate companies to the most prestigious and discerning clientele in the world,” said White. “We are honored to be celebrating this milestone by ringing the Closing Bell at the New York Stock Exchange.”

Later Philip White appeared on CNBC’s Closing Bell to discuss the luxury real estate market. In his appearance White commented that the luxury market is healthier than it was before the crash in 2008. “It’s even stronger; I think it’s more stable, it’s less erratic and the long-term value is even stronger than it was then,” he said. “It was a sharp drop-off as we all know, and it’s taken a long time to really get to this recovery point.”

While many market watchers feared that the Fed raising interest rates might increase mortgage prices further, this market is not directly affected by those changes, White said. “A lot of our transactions are all cash, and even the slight short-term interest increase really doesn’t affect the mortgage rates in a significant way,” he noted.

“We are very optimistic about sales growth for all the markets we cover,” says Sierra Sotheby’s International Realty President, Peter Strand. “Continued snowfall in the new year is fueling renewed demand for ownership. In 2016 we’re predicting our best year ever.”

Dry conditions in 2015 triggered undervalued pricing and lower than average sales volume in many of the ski resort neighborhoods like Northstar, Squaw Valley and the Stateline/ Heavenly Village areas, however, end-of-year statistics combined with an uptick in luxury sales at the onset of 2016 suggest that these areas are back on target to reach their full potential in the coming year.

“Families are running into challenges with lodging availability for their next ski vacation as rental entities sell out and high rental rates create heartburn for some. The costs and challenges of vacation rentals have families turning to ownership options to solve their needs,” says Truckee-based agent, Breck Overall. “Traditionally, as the snow continues to fall, inventory shrinks which creates a greater sense of urgency to lock in a desired location or opportunity.”

For those in the new home market, 2015 earmarked the most significant growth in new home construction in over a decade with hundreds of new builds recorded in Mountainside at Northstar, Martis Camp, Schaffer’s Mill, Gray’s Crossing, Lahontan and Old Greenwood. On the South Shore, Zalanta Resort, represents the first new luxury condominium project in 30 years while anticipation continues to grow around plans for proposed developments including the Truckee Railyard Project, Homewood Resort on Tahoe’s West Shore, and several new projects centered in Crystal Bay, NV.

“Tahoe’s lakefront market continued its rebound in 2015 with 25 properties selling on the West and North Shores,” says Sierra Sotheby’s International Realty Broker, Jeff Hamilton. “The biggest market shift showed increased activity on the West Shore combined with the decreased activity on the North Shore as buyers searched for ‘deep-water’ functional piers.  As winter storms continue, we expect that water level will play a less important role in determining which properties are being sold.  Until then, pier functionality and lake access will continue to drive buyers lakefront decision making process,” says Hamilton

Incline Village was a bright spot in 2015 for Sierra Sotheby’s International Realty who closed the year as the leader in lakefront home sales and a 57 percent overall jump in sales volume for that market. Prices in this niche market ranged from $2 Million to $11 Million in 2015 and $2 Million to $13 Million in 2014, says Incline Village agent Lexi Cerretti. “What’s notable about the Lakefront market in Incline Village,” adds Cerretti, “is that the inventory is very low. There are just three direct lakefront homes on the market now, and three homes with HOA lake access. There is buyer interest especially for building opportunities as well as newer construction or remodeled homes.”

On Tahoe’s East Shore the Glenbrook market remained strong through 2015, and although the number of units sold was down, average pricing was up 15 percent while average days on market was down 15 percent. “In terms of pricing, Tahoe’s East Shore offers an incredible value for lakefront property,” says Sierra Sotheby’s agent Claudia Thompson.

Southwest Reno was a highly robust market in 2015 with growth in both volume and median price across most neighborhoods. On a corporate scale, Switch’s new data center and Tesla’s new 3000-acre site just outside of Reno, NV are contributing to the region’s technology renaissance and economic vitality. Since 2011, the “Biggest Little City in the World” has recruited about 100 companies to locate or expand to the area with more than 10,000 new jobs and many more to follow.

San Francisco Bay Area and foreign buyers are taking notice. Between the outdoor lifestyle, natural beauty and Nevada’s tax hospitality, the greater Reno/ Lake Tahoe area is being taken seriously as place to relocate, diversify, and/or explore a slower pace of life.

Every micro market in the Reno/ Lake Tahoe region reacts differently to external triggers so Sierra Sotheby’s International Realty dissects the quarterly and year-end data by neighborhood to help buyers and sellers understand the market trends on a local level. To see how the market is trending in your community visit tahoerealestatediary.com/micro-market-reports or contact a local agent for expertise and insider knowledge.

Celebrating the recent opening of a new high traffic location at Stateline in the Village at Heavenly alongside the year anniversary of a newer office in Downtown Truckee, Sierra Sotheby’s International Realty now offers eight locations to compliment their unique global network.

Year End 2015 Tahoe Market Reports

North & West Shore
East Shore
Incline Village
Reno
Truckee
South Lake

Lake Tahoe 2015 Real Estate Home Sales

Friday, January 15th, 2016

Spanning 72 miles of Lake Tahoe shoreline, two state lines and a handful of California and Nevada counties and four multiple listing services, the Tahoe, Truckee and surrounding area real estate market is about as diverse as the area’s recreational offerings. Market trends can vary dramatically from neighborhood to neighborhood.

Incline Village, Nevada

Non-Lakefront Properties

The incline Village Crystal Bay market is leveling out since our first post recession, come-back year in 2013. Although median pricing has generally declined in 2015, pricing per square foot has steadily increased for the past 3 years providing a solid market basis for sales.

For single-family homes off the Lake, median sales price increased by 12% in 2014 to $995,000 and dropped 8% in 2015 to $917,500. However, a notable estate sold on the Eastern Slope for $12 Million last year, nudging up the average sales pricing 6% for 2015. The number of sales dropped 25% from 191 in 2013 to 143 in 2014, and fell another 5% to 136 in 2015. However, price per square foot has increased steadily for the past three years from $359 in 2013, to $392 in 2014, and to $405 in 2015.

Non-Lakefront condominium median price increased 6% to $429,000 in 2014 but dropped 2% to $420,000 in 2015. The number of sales decreased 19% from 225 in 2013, to 182 in 2014, but rose 20% last year with 219 sales in 2015. Price per square foot has risen steadily from $284 in 2013, to $3011 in 2014, to $306 in 2016.

Lakefront Properties

Lakefront properties comprise a small portion of our market, yet are a strong indicator for luxury home sales. We still see strength in pricing on relatively low inventory. Of note, there are currently only 3 direct lakefront homes listed for sale currently in Incline Village, all priced above $10 Million.

Lakefront home sales have dropped in quantity with 14 sales in 2013, 8 sales in 2014, and 6 sales in 2015, however the notable lakefront estate “Sierra Star” sold in the first week of 2016 for $25.25 Million which is the highest sales price in 3 years. There are currently 13 lakefront homes listed on the MLS ranging in price from $2.7 to $39.8M, and a $6 Million listing currently in escrow. Note that the data includes both direct lakefront homes and shared HOA lake frontage, so median pricing varies widely based on location, lake frontage and quality construction. The lowest price direct lakefront in Crystal Bay is currently priced at $8.3 Million, and the lowest priced of only 3 direct lakefronts available in Incline Village is priced at $10.5M. Average price per square foot has varied widely, ranging from $1,349 to $1,632 per square foot in the past 3 years.

Lakefront condo sales dropped from 14 in 2013, to 13 in 2014, down to just 7 in 2015. Sales pricing ranged from $530,000 to $2.2 Million in 2015. There are currently 6 lakefront condos n the MLS ranging in price from $975,000 to $4.1 Million. This relatively small data set to compare median pricing, as the size and location impact pricing greatly. Average price per square foot, however, has ranged from $816 to $897 in the past 3 years with the highest sales price at $6.7 Million in 2014.

A relatively strong supply of inventory in our Incline Village and Crystal Bay real estate market has impacted pricing and length of time on market. In the past 3 years, days on market has dropped from over 300 down to just over 130, on average signaling a more balanced buyer and seller market . The demand for properties in incline Village Crystal Bay can shift for various reasons, growth or stagnation in Northern California and surrounding areas, weather patterns or winter drought. Currently, the Bay Area economy is thriving and Northern Nevada is growing and drawing much attention for new business entering the area. A return to normal winter snowfall has also been a boon to local ski areas and our economy, driving strong vacation rentals. These positive factors should continue to contribute to steady real estate sales growth for the foreseeable future.

Lake Tahoe 2015 Real Estate Sales Data

North & West Shore
East Shore
Incline Village
Reno
Truckee
South Lake

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