2014 A Year In Review

“Quality over quantity” best sums-up the Tahoe-Truckee real estate market for 2014. With soaring economic conditions in the San Francisco Bay Area, more and more families made their way to Lake Tahoe to spend quality time together. This demand for home ownership led to a second straight year of over $1 billion in sales — the first time since 2004-2005.

Following an exceptionally healthy 2013, quality inventory was at a premium heading into 2014.  Despite fewer overall sales, the region’s dollar volume grew by over $100 million, indicative of a higher number of transactions for the market’s top tier properties. Average price grew by 18% in 2014 buoyed by 249 transactions at prices greater than $1 million.

Three communities in particular set the tone for the surging luxury market in 2014.

Tahoe Lakefronts, the gold standard for Tahoe real estate, outperformed all other classes over the past year with $130 million traded over 34 properties – the highest level in nearly a decade.

Tahoe Lakefront sales have been robust in 2014 as wealthy buyers are taking advantage of some amazing opportunities.  With that said, Tahoe lakefront demand is currently exceeding supply and there are many buyers actively searching for lakefront homes and due to the limited inventory, these buyers cannot find properties that meet their needs.  Excess demand has put upwards pressure on Tahoe lakefront pricing and we expect to see a continued increase in pricing going into 2015.   In 2014 we have seen a large amount of entry level lakefront sales with 6 lakefronts selling below $2m!  Although the average price is slightly rising the median Tahoe lakefront sales price is down this year, which is mostly due to the high level of entry level Tahoe lakefront sales.  It is rare that we see so many sales below $2M and buyers are quick to gobble up these opportunities.

Martis Camp, elevating Tahoe resort property for nearly a decade now, has only 80 homesites left so the focus shifted to the sale of custom homes. 2014 saw 36 residences sold in this community at an average price of $3,700,000 — a figure nearly identical to lakefront sales.

Finally, as Vail Resorts continues to distinguish itself as the world’s elite resort operator, the prestige of Northstar has risen to new levels. Accordingly, the opportunity to live on the Mountain has become its own calling card.  Northstar, the community anchored by The Ritz-Carlton; Lake Tahoe, has established an identity as the premiere on-mountain living experience on the West Coast. In 2014, Mountainside experienced over $40,000,000 in transactions ranging from estate land to premiere ski-in / ski-out residences.

Looking ahead to 2015, all indications are that this robust market will continue. With inventory remaining at a balanced 6-month supply and stable economic conditions Tahoe appears poised for another year of growth.  As Martis Camp and The Ritz-Carlton Residences near sellout, Northstar, Lahontan, Gray’s Crossing stand to benefit as the recipients of attention from well-qualified consumers.

Oliver Luxury Real Estate is #1 for Tahoe Lakefront Sales

In 2014 Oliver Luxury Real Estate has sold 23 Lake Tahoe lakefront homes, which is more than double that of our closest competition!  The Oliver Luxury Real Estate sales agents have a combined sales volume of $220,000,000 making us the #1 Luxury Brokerage in North Lake Tahoe.  These are fantastic statistics, but we are most proud of the superior level of service that we provide to our clients which has helped us achieve the noted accolades.  If you are looking to buy or sell your Lake Tahoe property please feel free to call me anytime to discuss how I can help you achieve your real estate goals.

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