It was a strong year for the North Lake Tahoe & Truckee real estate market. Median price increased across the board. The North & West Shores of California continue on a 7-year median price growth trend. In Truckee, the median price has consistently increased for four straight years.
Most significantly, in Nevada, Incline Village & Crystal Bay experienced a 19% spike in median home price. The tax-friendly climate in Nevada became even more attractive to high-income Californians with the tax reform that took effect early 2018. These changes limited deductions of state tax from a filer’s federal returns, which inspired interest in Nevada, a state without income tax. We saw a similar spike in the Nevada market in 2012, when California passed a tax increase to 13.3% affecting top earners.
Lakefront sales reached a 4-year high, despite a meager supply of listings, with a median price under $5M. Of the 35 single-family lakefront homes that sold on the North & West shores, eight homes sold at or above $10M. The top lakefront sale price was $40M on Sunnyside Lane on Tahoe’s West Shore. Demand was so strong for lakefront properties that seven homes sold before ever reaching the open market. And, 14 of 18 lakefront sales were in contract within two weeks of listing, compared to a typical year when a lakefront can take an average of over one year to sell.
Notably, although not a specific micro-region of this report, the Dollar Point neighborhood of Tahoe City posted 29 single-family home sales in 2018, the highest sales volume in the past 12 years.
While the number of homes sold dipped year-over-year in three of the five micro-regions in our report, the decline can be attributed to a decrease in supply of available listings. In Truckee single-family home sales dropped 6% year over year; yet, Martis Camp led Truckee’s luxury market with 47 sales (up 12% year over year) totaling nearly $250M, averaging $5.3M per sale.
The 2019 real estate market will be heavily influenced by external factors. A bumpy stock market and climate of instability raises concern. Rising interest rates impact the market, less so at the higher price points. We predict interest in Dollar Point with abundant HOA amenities and convenient North Shore location will continue through 2019. We expect Martis Camp sales to decrease as the community gets built out. The Nevada market will be one to watch, as it is heavily impacted by the current market conditions and tax laws. Sales volume and median price may soften slightly in 2019, but Lake Tahoe will always have a draw as a popular and desirable place for those seeking a four-season wonderland. New communities in Truckee add to our region’s appeal.
In company news, Tahoe Luxury Properties reports a record-breaking year. Bill Dietz, principal broker, sold over $145M in residential real estate sales in both California and Nevada, finishing the year as the #1 agent in dollar volume in the region.
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View the graphs of sales volume and median price trends by micro-region by clicking the gallery images below.
Source: Tahoe Sierra MLS and Incline Village MLS