Sierra Sotheby’s 2015 year-end market report for Lake Tahoe region
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 Dec. 29 closing bell. The event celebrated the company’s 40th anniversary in the luxury residential real estate brokerage business.
“We are very optimistic about sales growth for all the markets we cover,” said 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 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,” said 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, Nevada.
“Tahoe’s lakefront market continued its rebound in 2015 with 25 properties selling on the West and North shores,” said 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.”
Incline Village was a bright spot in 2015 for Sierra Sotheby’s International Realty, which 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 to $11 million in 2015 and $2 to $13 million in 2014, said Incline Village agent Lexi Cerretti.
“What’s notable about the lakefront market in Incline Village,” added 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.”
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,” said 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. Switch’s new data center and Tesla’s new 3,000-acre site just outside of Reno are contributing to the region’s technology renaissance and economic vitality.
Sierra Sotheby’s International Realty has eight boutique office locations throughout Lake Tahoe. Stop by or call one of these locations to talk to a local expert, search online at http://www.sierrasothebysrealty.com or text SierraSIR to 87778 to download our mobile app. Find us on http://www.Facebook.com/SierraSIR or follow us on Twitter @SierraSIR.
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