After a stagnant 2009, the upper-end real estate market in Tahoe surprised many by showing significant signs of life. Despite persistently poor economic news in 2010, upper crust sales skyrocketed. In the North Shore region (CA & NV,) there were only three public sales above $5,000,000 in 2009. In 2010, 15 closings posted north of $5M. Four of the 15 sales closed above $10M.
Cash is king at the high end, with 12 of the 15 sales above $5M in 2010 closing without any financing. I attribute the strong sales volume at the high end to a number of different factors. First of all, let’s not kid each other about how bad 2009 was. People were more concerned about the world ending than dropping eight figures on a vacation home. In 2010, confidence returned (as tenuous as it may be), the stock market rebounded (as shaky as the ride has been), and many corporations posted strong earnings (despite them not hiring anyone). Another reason why the upper end market rebounded in 2010 was the attraction of high inventory and good values. Because sales were near non-existent in 2009, and many Tahoe property owners needed to sell, inventory ballooned and prices fell. The selection of high-end property on the market was something that had not been seen in years, if not decades.
The opportunity for Buyers to have a number of class A properties from which to chose, and the chance to negotiate heavily against them brought many buyers off the sidelines. Tahoe Luxury Properties fortunately participated in the high-end activity of 2010. We had our best real estate sales year ever, closing more than $75,000,000 in transactions. We are blessed by our success and look to the future as bright.
For those of you who have considered purchasing a home in the Lake Tahoe area, there are many signs that say this remains a favorable time. In addition to the large selection and negotiable sellers, winter is traditionally the time to secure the best deals on Tahoe properties. Because the majority of Lake Tahoe properties sell in the summer, sellers become anxious this time of year if their property has not sold. And, because their best shot to sell may not come around again until summer 2011, many sellers will offer larger concessions off the asking prices in order to secure a sale.
-Bill Dietz, Principal Broker
If you are interested to buy or sell your Lake Tahoe home, please contact us.