|Inspired by a record number of premium transactions, the Truckee/Tahoe region totaled just under $1,700,000,000 in real estate sales, a number greater than any single year in history.
Here’s another crazy figure: These exceptional properties delivered the first ever annual average price of over $1,000,000. Over a million? I think that’s remarkable.
Aside from these astonishing numbers, there’s been a noticeable slowing, especially in entry-level price points. In fact, we have one of the lowest-level inventory supply on record for our region.
|To be direct, I would not expect these market conditions to continue. The total number of transactions have moderated and available supply has crept upward. We think that some measure of cooling would ultimately be healthy for a market where appreciation has outpaced inflation and other core metrics for so long.
Unlike a decade ago, there is neither the rampant speculation nor extreme debt that had a spiraling effect. In fact, certain conditions now exist that may safeguard against a backslide including tremendous demand for nightly rentals that offer a meaningful offset to carry costs.
Even the Great Recession did not dim the desire for Northern Californians to spend time in the mountains – which keeps our transient demand healthy.
Please enjoy the beautiful snow conditions out there, and give me a call if you’re ready to buy or sell in Truckee – I’d be happy to assist you.