The Tahoe 2016 real estate market posted widespread gains in both units sold and median price. On the macro scale, the rise in this year's Tahoe real estate market can be attributed to an improving nationwide market and low mortgage interest rates. Locally, prices and units sold were boosted by a strong snow season in 2016 (after four consecutive dry winters) and rising lake levels. Everyone was reminded that Tahoe thrives as a year-round destination, and confidence returned to the Tahoe buyer.
The Tahoe market has been steadily marching out of the giant crater left by the financial collapse. The median price in the Tahoe area is now back to roughly 2008 pricing, two years after the 2006 peak. For buyers, opportunities remain, as the market is still priced under the high-water mark of 2006 (unlike other parts of California).
Local market highlights include Incline Village and Crystal Bay, NV posting a 14% gain in the median price of a single family home and the sales volume (216 units sold) reached an 11-year high. The Truckee market again was led by the upscale private golf course and ski community of Martis Camp, which recorded 49 home sold in 2016 with a median price over $4 million.
The one soft spot in the market was Tahoe lakefronts with only 21 sales of single family lakefront homes between Incline Village and Rubicon Bay, down 33% year-over-year. The strong sales in Martis Camp have had an obvious drag on the lakefront market, as well as put some downward pressure on other upper-end Tahoe Basin properties (+$3MM), resulting in buyer opportunities. Anticipate that as the Martis Camp community gets built out and sales eventually slow, the Tahoe Basin will draw these buyers.
With another strong winter underway, and the national election behind us, expect the Tahoe market continue its upward trend back to the highs of 2006.
Source: Tahoe Sierra MLS and Incline Village MLS