After our record-breaking year in 2018 many agents and consumers are feeling that the market is soft and have concerns about what this all means. In reality, the Tahoe market is entering a stage of normalization. Over the last 3 years, we have experienced massive growth in our sales volume, average price, and the number of luxury home sales. This momentum is not sustainable and to see the market soften in some segments is not necessarily worth panicking over, especially when you consider that the median home price is still up 4% over 2018 and many segments of the market are stronger than ever.
The two strongest segments in our third quarter market were the sub $800k and the new construction luxury homes in the golf course communities of Truckee. By contrast, the $800K to $1.2M price range experienced a slowdown in sales.
There’s great demand and competition in the sub $800k price range, especially in the desirable second home neighborhoods, like Tahoe Donner, where supply has been lacking over the last few years. Most buyers in this price range are not interested in doing a whole lot of remodeling and are looking for updated or remodeled homes with more modern finish details.
The golf course communities took the spotlight for sales performance in the third quarter! The average home price in Lahontan is up 15.4%, the median home price in Gray's Crossing is up 13% and the average home price in Martis Camp is now $5.1M. Demand for new construction luxury homes is high and these buyers are willing to pay a premium to own in these neighborhoods.
We are now in the 4th quarter, which has historically been one of our strongest selling period of the year. I don’t expect anything different for 2019. There are over 230 residences currently in contract and we are still receiving offers, as buyers are taking advantage of solid inventory and motivated sellers.
To see how the market is trending in your neighborhood follow the links below to see the data broken down by the region’s very diverse communities. If your neighborhood is not listed, or you're unsure what the data means for your situation, please don't hesitate to contact me.
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