Matty’s Minute: The Market Must Be Slowing Down…Right?
Enjoying the view from a $41,000,000 6 acre property in Meeks Bay currently for sale. The Caldor fire still visible in the distance…
Welp...I wish I had better news for the prospective buyer waiting for a significant change in the Truckee/Tahoe market...however, regardless of recent fire activity, talks of lack of snow, too much snow and/or wavering water levels in our lakes...the demand to live here in one of the most beautiful places on earth will always be a steady driving force to our real estate market dynamics, unique to the rest of the country.
Yes, devastating recent wildfire activity from the Caldor Fire, now at 76% contained, and the Dixie Fire, now 94% contained, thanks to all the hard work by our firefighters, had many "would be" consumers temporarily hit the pause button on making a purchasing decision.
Visitation to the area, as is customary during what we historically have called our "Shoulder Season," perhaps has dropped off as the hustle of school and sports schedules have taken precedence. However, historically the upcoming Fall Season is our largest purchasing time of year, as inventory typically increases and consumers decide to lock in a property prior to the winter and holiday seasons. We do also see, as rental inventory becomes increasingly hard to book, would be renters deciding to purchase instead to solidify a place for a holiday retreat this winter.
While maybe less purchasing decisions this year have been for full time relocation, as was the norm in 2020, our same consumers have still sought to have a "co-primary residence" here in the mountains to offset their normal day to day, and something to look forward to as the better part of every week.
As of this past week, the Tahoe Truckee region just surpassed $2,000,000,000 in residential sales, only the second time ever this has happened... and it's still just Q3.
For comparison, this time last year we stood at $1.7B and finished the 2020 year with $2.6B. Last year's $1.7B in sales volume, 17% behind the pace of this year, was based on 1518 transactions. YTD this year we are at just 1393 transactions, 125 fewer than PY, but ahead over $350,000,000 in sales volume.
Here's how this massive raise looks broken down at different price points...
>$1,000,000: YTD- 635 transactions/ PY- 445
>$2,000,000: YTD- 211 transactions/ PY- 170
>$5,000,000: YTD- 60 transactions/ PY- 30
>$10,000,000: YTD- 17 transactions/ 33% above all the deals above that threshold ever.
Here's whats currently listed in our Core golf/ski centric Communities
Martis Camp
Lahontan
Gray's Crossing
Old Greenwood
Schaffer's Mill
Northstar/Mountainside
Tahoe Donner
As always, please contact me to take a deeper dive into current market dynamics, schedule a tour or a listing consultation today.
Thanks,
Matty