Luxury Trends 2nd Quarter 2018 Tahoe/Truckee Market Report
DicksonLuxury.com
COVER PROPERTY FEATURED:
11090 SITZMARK WAY $1,125,000, MLS# 20181518
Welcome TO OUR 2ND QUARTER 2018 LUXURY MARKET REPORT Summer is officially in full swing in the Truckee-Tahoe area. There are events to peak any interest from running, kayaking, fishing, bicycling and swimming to festivals, music in the parks or star gazing. The whole area comes alive with exuberant activities for individuals and families. Yet, if you just want to chill and relax, this is one of the most pristine environments to enjoy the crisp, clean air of the mountains, rivers and lakes, be it on a beach or on your deck. The market continues to be brisk. There were 155 sales in the 2 nd quarter 2018, compared to 114 in the same period 2017. Average sales prices increased 26% and the median pricing rose by 11% since last year. The category of homes ranging from $1M-$2M lead at 61%, followed by $3M-$5M at 18%. The average days on market were reduced by approximately 30%. There were two notable sales during this quarter on the North Shore and West Shore of Lake Tahoe, California. On the north shore, an award winning waterfront home consisting of 5 bedrooms, 6.5 bathrooms, with a 4 car
garage on 2.5 acres sold for $22,865,543. On the west shore a 9 acre lakefront estate with a primary house with 7 bedrooms and bathrooms and two additional guest cottages, 2 car garage, private pier and tennis courts sold for $40,000,000. We continue to experience low inventory and prices remain stabilized and slight increases are anticipated in 3rd quarter. However, economic conditions and tax law changes could affect this outlook nationwide. More than ever, it is important to utilize the skills of a real estate professional specializing in luxury home sales. Our highly trained, experienced agents are here to assist you whether you are buying, selling or both. Dickson Realty’s agents are all Realtors and have access to the most current and reliable market data available in order to help clients make fully informed choices.
—Broker/Manager, Dickson Realty Truckee
Luxury Home Averages Over $1 Million January-june 2018 vs. 2017
+48%
+16%
+9%
+42%
TOTAL UNITS SOLD
AVERAGE SOLD PRICE
AVERAGE PRICE PER SF
AVERAGE DAYS ON MARKET
2018: 105 2017: 71
2018: $2,376,805 2017: $2,050,936
2018: $641.20 2017: $586.13
2018: 104 2017: 73
Data Source: Tahoe Sierra Multiple Listing Service (TSMLS) as of July 9, 2018, For the periods Jan.-June 2017 and Jan.-June 2018
Luxury Home Sales over $1 Million Truckee NUMBER OF SALES AVERAGE SALES $ HIGHEST SALE $
105 $2,376,805 $8,800,000
Alpine Meadows NUMBER OF SALES AVERAGE SALES $ HIGHEST SALE $
North Shore, Lake Tahoe, CA NUMBER OF SALES AVERAGE SALES $ HIGHEST SALE $
28
10%
NUMBER OF SALES
$1,175,000 $1,200,000
$3,013,104
AVERAGE SALES $
$22,865,543
HIGHEST SALE $
$3,000,000– $4,999,999
HIGHEST SALE $
$1,595,625 $2,150,000
15 $4,948,800 $40,000,000
Sold Listings Over $1 Million $5,000,000 and higher
$1,000,000– $1,999,999
57%
AVERAGE SALES $
4
West Shore, Lake Tahoe, CA NUMBER OF SALES
Active Listings Over $1 Million $5,000,000 and higher
2
Squaw Valley
9%
$1,000,000– $1,999,999
61%
$3,000,000– $4,999,999
18%
14%
$2,000,000$2,999,999
$2,000,000$2,999,999
12%
19% $1,000,000– 123 Active Listings $1,999,999 $1,429,453 Average Price
$1,000,000– 94 Sold Listings $1,999,999 $1,345,951 Average Price
$2,000,000– 40 Active Listings $2,999,999 $2,526,732 Average Price
$2,000,000– 19 Sold Listings $2,999,999 $2,452,578 Average Price
$3,000,000– 31 Active Listings $4,999,999 $3,946,870 Average Price
$3,000,000– 28 Sold Listings $4,999,999 $3,866,320 Average Price
117 Average Days On Market
91 Average Days On Market
113 Average Days On Market
$5,000,000 21 Active Listings and higher $11,006,904 Average Price
221 Average Days On Market
Data Source: Tahoe Sierra Multiple Listing Service (TSMLS) as of July 23, 20018
80 Average Days On Market
58 Average Days On Market
193 Average Days On Market
$5,000,000 14 Sold Listings and higher $9,956,208 Average Price
200 Average Days On Market
Data Source: Tahoe Sierra Multiple Listing Service (TSMLS) as of July 9, 2018
Recent Dickson Sales
SOLD $4,500,000
Buyer and Seller Representation by Dickson Realty
SOLD $1,975,000
Buyer and Seller Representation by Dickson Realty
SOLD $1,835,645
Lake Tahoe
Donner Lake
Buyer and Seller Representation by Dickson Realty Tahoe Donner
SOLD $2,537,500
Buyer Representation by Dickson Realty
SOLD $1,960,000
Buyer Representation by Dickson Realty
SOLD $1,675,000
Buyer Representation by Dickson Realty
Lahontan
Lahontan
Gray’s Crossing
Recent Dickson Sales
SOLD $1,640,000
Buyer Representation by Dickson Realty
SOLD $1,371,000
Buyer and Seller Representation by Dickson Realty
SOLD $1,345,000
Buyer Representation by Dickson Realty
Tahoe Donner
Tahoe Donner
Tahoe Donner
SOLD $1,615,000
Seller Representation by Dickson Realty
SOLD $1,350,000
Buyer Representation by Dickson Realty
SOLD $1,300,000
Tahoe Donner
Serene Lakes
Buyer and Seller Representation by Dickson Realty Tahoe Donner
Recent Dickson Sales
SOLD $1,250,000
Seller Representation by Dickson Realty
SOLD $1,220,000
Seller Representation by Dickson Realty
SOLD $1,170,000
Seller Representation by Dickson Realty
Tahoe Donner
Gray’s Crossing
Tahoe Donner
SOLD $1,250,000
Seller Representation by Dickson Realty
SOLD $1,192,000
Seller Representation by Dickson Realty
SOLD $1,162,500
Tahoe Donner
Northstar
Buyer and Seller Representation by Dickson Realty Tahoe Donner
Recent Dickson Sales
SOLD $1,150,000
Seller Representation by Dickson Realty
SOLD $1,115,000
Buyer Representation by Dickson Realty
SOLD $1,030,000
Seller Representation by Dickson Realty
Tahoe Donner
Tahoe Donner
Tahoe Donner
SOLD $1,150,000
Seller Representation by Dickson Realty
SOLD $1,030,000
Buyer Representation by Dickson Realty
SOLD $1,000,001
Seller Representation by Dickson Realty
Tahoe Donner
Tahoe Donner
Tahoe Donner
Current Luxury Listings
$1,695,000
15104 Donner Pass Road
$1,250,000
11993 Whitehorse Road
MLS# 20180595
MLS# 20181676
PE
$1,150,000
13264 Skiview Loop
ND
$1,630,000 11033 Meek Court
$1,125,000
11090 Sitzmark Way
MLS# 20181731
MLS# 20181518
PE IN
G
MLS# 20181580
$1,700,000 15376 Skislope Way
ND
IN
G
MLS# 20181483
Old Greenwood
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price 2018
2017
AVERAGE $
AVERAGE PRICE
56%
$2,249,333 $1,441,500
FROM LAST YEAR
MEDIAN $
MEDIAN PRICE
58%
$2,243,000 $1,422,500
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-67%
FROM LAST YEAR
UNITS SOLD
-50% FROM LAST YEAR
32
98
DAYS ON MARKET
3 UNITS SOLD
6
Gray’s Crossing
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price 2018
2017
AVERAGE $
AVERAGE PRICE
-6%
$1,333,125 $1,422,636
FROM LAST YEAR
MEDIAN $
MEDIAN PRICE
-7%
$1,270,000 $1,365,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
54%
FROM LAST YEAR
UNITS SOLD
-27%
FROM LAST YEAR
106
69
DAYS ON MARKET
8 UNITS SOLD
11
Lahontan
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price AVERAGE $
2018 2018 2017
AVERAGE PRICE
-19%
$2,089,325 $2,567,000
FROM LAST YEAR
MEDIAN $
MEDIAN PRICE
-26%
$ 1,783,000 $2,400,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
1%
FROM LAST YEAR
UNITS SOLD
140% FROM LAST YEAR
141
140
DAYS ON MARKET
12 UNITS SOLD
5
Schaffer’s Mill
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price AVERAGE $
2018 2018 2017
AVERAGE PRICE
-12%
$1,331,000 $1,511,800
FROM LAST YEAR
MEDIAN $
MEDIAN PRICE
-16%
$1,255,000 $1,500,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-89%
FROM LAST YEAR
UNITS SOLD
0%
FROM LAST YEAR
33
298
DAYS ON MARKET
5 UNITS SOLD
5
Martis Camp
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price
MEDIAN $
AVERAGE $
2018
2017
AVERAGE PRICE
$4,928,944
14%
$4,316,153
FROM LAST YEAR
MEDIAN PRICE
$4,550,000
15%
$3,975,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
7%
FROM LAST YEAR
UNITS SOLD
85%
FROM LAST YEAR
183
171
DAYS ON MARKET
24 UNITS SOLD
13
Northstar
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price
MEDIAN $
AVERAGE $
2018
2017
AVERAGE PRICE
$2,207,066
35%
$1,635,875
FROM LAST YEAR
MEDIAN PRICE
$1,695,000
19%
$1,425,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-11%
FROM LAST YEAR
UNITS SOLD
-6%
FROM LAST YEAR
140
158
DAYS ON MARKET
15
16
UNITS SOLD
Squaw Valley-Alpine Meadows
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price
MEDIAN $
AVERAGE $
2018
2017
AVERAGE PRICE
$1,455,416
0.4%
$1,450,000
FROM LAST YEAR
MEDIAN PRICE
$1,366,250
-8%
$1,482,500
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-28%
FROM LAST YEAR
UNITS SOLD
-25%
FROM LAST YEAR
225
312
DAYS ON MARKET
6 UNITS SOLD
8
Lake Tahoe – North Shore
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price
MEDIAN $
AVERAGE $
2018
2017
AVERAGE PRICE
$3,013,104
88%
$1,600,421
FROM LAST YEAR
MEDIAN PRICE
$1,740,000
43%
$1,220,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-23%
FROM LAST YEAR
UNITS SOLD
47%
FROM LAST YEAR
114
148
DAYS ON MARKET
28 UNITS SOLD
19
Lake Tahoe – West Shore
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price
MEDIAN $
AVERAGE $
2018
2017
AVERAGE PRICE
$4,948,800
33%
$3,712,125
FROM LAST YEAR
MEDIAN PRICE
$1,760,000
4%
$1,688,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-29%
FROM LAST YEAR
UNITS SOLD
0%
FROM LAST YEAR
87
123
DAYS ON MARKET
15 UNITS SOLD
15
Tahoe Donner
January-June 2018 vs. 2017 Average vs. Median Average vs. Median Price
MEDIAN $
AVERAGE $
2018
2017
AVERAGE PRICE
$1,209,777
0.1%
$1,208,437
FROM LAST YEAR
MEDIAN PRICE
$1,170,000
0.4%
$1,165,000
FROM LAST YEAR
Average Days on Market vs. Units Sold 2018
2017
DAYS ON MARKET
-44%
FROM LAST YEAR
UNITS SOLD
238% FROM LAST YEAR
27 44
78
DAYS ON MARKET
8 UNITS SOLD
LUXURY LOYALISTS The Luxury Loyalists are high-net-worth consumers over 50 years old and in the market to buy a personal residence for $1 million or more in the next 3 years. These are the traditional luxury home buyers. While they have historically made up the bulk of luxury consumption in the world, they are now at a stage in life where their priorities are shifting from raising a family to preparing for the next chapter in life. Spending on hard goods is in decline, in favor of more experiential choices, such as travel and asset transfer. As their spending habits change, their needs in real estate reflect an evolving sensibility.
TRANSFERRING ASSETS TO THE NEXT GENERATION Wealth transfer has been underway for some time, and the reasons why are truly practical. It is as much about teaching as it is about seeing their children and grandchildren be happy. The gifting is about making sure their heirs are ready for the task of managing large sums of money, which can be very difficult.
From a somewhat selfish perspective, they want to see the money be a source of joy for their heirs. This means heirs have a chance to live with “some” money while the earner is still alive. They can teach and guide before the bulk of the estate gets passed on. Asset transfer is concentrated on the Millennial segment of The New Aristocracy. More Millennials expect to inherit, compared to Gen X and the Baby Boomers, and they stand to inherit more money overall.
WHAT DOES IT MEAN FOR REAL ESTATE? Luxury Loyalists are thinking long term. They want to ensure their family is well protected and that they can focus on adding quality in their life for the years to come. Families have crafted a moat (primarily of cash) that protects their castles and their peace of mind. Ultimately, they are looking for their professional service providers to contribute to their quality in life so that clients come to view services and providers as critical elements in the maintenance of their lives, their castles and their moats.
How much,* if anything, do you expect to receive from inheritance from your parents, grandparents or other family members? TOTAL INHERITORS Have already inherited, or expect to receive an inheritance in the future
90%
AVERAGE INHERITANCE RECEIVED/EXPECTED TO RECEIVE USD Millions
$4.0M $3.5M
79% 66%
$1.4M Millennials
Gen X
Baby Boomers
Millennials
Gen X
Baby Boomers
*Include amounts already received as well as future inheritance from all sources, before taxes (e.g., cash, stocks, bonds, real estate, art, business assets, other assets).
Luxury Portfolio International® || 9
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
LUXURY LOYALISTS
REAL ESTATE TRENDS
How many of each of the following room types do you want to have in your next personal residence?
Luxury Loyalists do not anticipate relocating for work, and their family size will remain stable over the next few years, leading them to expect staying in their new home significantly longer. It is no surprise then, that needs for the million-plus home vary generationally. Luxury Loyalists who plan to spend at least $1 million on real estate in the next one to three years, tend to be in the market for a home in the suburbs under 5,000 square feet, with fewer beds and bathrooms to worry about. All told, younger million-plus buyers are planning to spend more on bigger houses than are older millionplus buyers and their life stages can be used to help understand their needs. In which one type of location do you want your next personal residence? Urban
28%
Suburban
60%
Rural
13%
How many square feet are you looking to have in your next personal residence? Under 1,000
—
Average Number of Bedrooms
3.5
Average Number of Bathrooms
3.6
Average Number of Parking Spots in a Garage
2.3
Design Sensibility Luxury Loyalists are seeking contemporary and modern homes, primarily, perhaps as way to simplify their lives. They seek big windows in order to feel more connected to nature and to bring in sunlight. They also seek new technology in materials used, including non-toxic and recycled materials. For the modern-home seeker, simplicity is key. Clean, open and light-filled spaces represent peace and refuge from the world. Careful placement of color, texture and personality is a priority. Mediterranean homes are also in demand as the allure of southern European design remains strong with the generation who grew up romanticizing the region through movies, food and travel. One-fifth of Luxury Loyalists are also thinking of the efficiency, security and ample amenities offered by a large building of condominiums or apartments. Which of the following architectural or home styles are you thinking about purchasing for your next primary personal residence?
1,000 Under 2,000
10%
2,000 Under 3,000
21%
Contemporary
41%
3,000 Under 5,000
38%
Modern
38%
5,000 Under 7,500
14%
Mediterranean
22%
7,500 Under 10,000
8%
Apartment/Condo in a Large Building
20%
10,000 Under 20,000
4%
Ranch
16%
20,000 or More
6%
Mid-Century Modern
16%
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
10 || Luxury Portfolio InternationalÂŽ
LUXURY LOYALISTS
MOST DESIRED FEATURES AND AMENITIES Luxury Loyalists place high importance on outdoor living space, along with practical features inside the home, including: a dedicated laundry room, high efficiency windows and doors, and dual master suite closets (preferably equal in size).
TOP 5 OVERALL DEEMED “ESSENTIAL” NEXT HOME FEATURES
1
Has Outdoor Space such as a Patio or Terrace
2
Has a Dedicated Laundry Room with High Efficiency Appliances (or space for their own)
3
Construction Incorporates HighEfficiency Windows and Doors
4
Master Suite with Dual Closets
5
A Butler’s Pantry with Ample Storage
Fitness A well-outfitted gym and pool with spa/Jacuzzi/hot tub area are in high demand with more specific amenities like a steam shower, sauna, massage and yoga rooms. Essential
Nice to have
Does not matter
Gym/Fitness Room
33% 43% 24%
Outdoor Pool
30% 36% 33%
Spa/Jacuzzi/Hot Tub
28% 42% 31%
Sustainability For Luxury Loyalists, efficiency means cost savings. These buyers want to avoid leaky windows and doors and are seeking high-efficiency HVAC and water landscaping mechanicals in their next home. Tankless water heaters are also in demand, as they save on heating costs. Essential
Nice to have
Does not matter
Incorporates Highest Efficiency Windows/Doors
55% 44% 1%
Incorporates Highest Efficiency HVAC
42% 54% 4%
Water Efficient Landscaping
35% 57% 8%
Incorporates Tankless Water Heaters
29% 53% 19%
CONSTANTIA UPPER, CAPE TOWN, SOUTH AFRICA | R17,900,000
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
RANCHO SANTA FE, CA | $11,500,000
Entertaining
Specialty Spaces
Luxury Loyalists put a lot of stock in the kitchen. Top amenities include a butler’s pantry/storage area, commercial grade appliances with dual refrigerators, and an island/breakfast bar for mornings and a formal dining room for evening gatherings.
Specialty spaces are three of the top five most essential amenities in the next home. For the Luxury Loyalists, the patio around the pool and spa is the most important feature overall. Inside the home, dedicated spaces for practical function are a must (an office and laundry room top the list). When it comes to the living space there are dueling needs: a casual great room and a formal living space. Homes that provide both may be most enticing.
Essential
Butler’s Pantry/Storage
Nice to have
Does not matter
42% 49% 8%
Essential
Commercial Grade Kitchen Appliances
40% 50% 10%
Island/Breakfast Bar
39% 56% 5%
Formal Dining Room Dual Refrigerators
37% 42% 22% 29% 41% 30%
Nice to have
Outdoor Patio/Terrace
62% 36% 2%
Dedicated Laundry Room
60% 36% 4%
Dual Master Suite Closets
50% 42% 8%
Dedicated Home Office
42% 44% 14%
Combined Great Room/ Living Space
36% 56% 8%
Formal Living Room
31% 42% 27%
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
12 || Luxury Portfolio International®
Does not matter
LUXURY LOYALISTS
Privacy & Security
Community Amenities & Proximity
Luxury Loyalists are less focused on privacy and security compared to The New Aristocracy which see it as essential. However, feeling that their home is monitored and safe is still a priority.
The most important community amenities are fitnessrelated, as Luxury Loyalists look to stay healthy and fit for years to come. Medical facilities are also in high demand, to keep up with physical maintenance. Nearby shopping and dining are also highly important.
Essential
Nice to have
Does not matter
Monitored Security System/Alarm
40% 51% 8%
Multiple-View Surveillance Cameras
35% 50% 15%
Onsite Security Monitoring/Detail
30% 52% 18%
Smart Home The smart home is more of a nice-to-have feature than an essential for Luxury Loyalists. Where they do see value is in controlling the HVAC and lighting as well as having the systems integrated with their smartphone. They do not want to learn a new system if they can avoid it. Essential
Nice to have
Essential
35% 58% 7%
Smart-Phone Control
28% 54% 18%
Auto Control Lighting
28% 59% 13%
Does not matter
Proximity to Day-to-Day Shopping
38% 56% 5%
Proximity to Dining
38% 58% 4%
Proximity to Medical Facilities
36% 53% 10%
Gym/Fitness Center/ Health Club
31% 47% 21%
Running/Walking Trails
23% 66% 10%
Pet Walking Facility
19% 36% 45%
Does not matter
Auto Control HVAC
Nice to have
NEW YORK, NY | $10,250,000
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
TRUCKEE 530.587.7444 DOWNTOWN RENO 775.324.7000
CAUGHLIN RANCH 775.746.7000
PORTOLA 530.832.1700 DAMONTE RANCH 775.850.7000
DONNER LAKE 530.587.4811 SOMERSETT 775.746.7222
MONTRÊUX 775.849.9444
SPARKS 775.685.8800
DicksonLuxury.com | luxury@dicksonrealty.com
© 2018 Dickson Realty. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy. If your property is currently listed for sale, this is not intended to be a solicitation.