2021 Fall-Winter Donovan Luxury Group Report

Page 1

LUXURY

REAL ESTATE MARKET REPORT FALL-WINTER 2021 DONOVAN GROUP LUXURY TEAM | 775 750 2190 1


480 GONOWABIE | OFFERED AT $28,850,000 LISTED BY DONOVAN GROUP LUXURY TEAM


Contents Welcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Luxury Insights

5

Q3 2021 Luxury & Lakefront Statistics

6-9

Significant Sales . . . . . . . . . . . . . . . . . . . . .

10-13

Chase Luxury Statistics . . . . . . . . . . . . . . . . .

14-18

Donovan Group Luxury Collection . . . . . . . . . . . 19-25 What is a Pier on Lake Tahoe Worth Luxury Partnerships About Donovan Group Luxury Team

26-29 30 31

...........................

CHASE INT ERNAT I ONAL .CO M 33


welcome Chase LIFE—live well, work well, love well! Take a breath! It is the High Sierra calling. The call echoes gratitude, compassion and love for our region - for all firefighters, first responders, volunteers and communities who protected our national treasure. In times like this, we get to know our neighbors from near and far. After many weeks of fire and smoke, we have a greater understanding of our wants and needs. Today, we embrace a sense of wellbeing. Protecting our little space in the world is essential. The chaotic real estate growth is now more in tune with nature. Our economic opportunities are fresh, and we continue to welcome a real estate market fulfilling people’s desires. There is a higher regard for our land, water, air and forests. Inventory is still being purchased at a robust rate but the market demands attention to pricing. There is a window of opportunity for all people - being patient, determined and prepared are still key factors to gain success.

Today, Incline Village and Crystal Bay command the highest prices around the lake. The Crystal Cove Coast offers the most spectacular opportunity we have seen in a long time. Zephyr Cove is a hot spot while South Lake Tahoe is safe and sound. New home construction is still at an all-time high in Clear Creek Tahoe with exciting new developments coming down the pike. The Carson Valley is a true value with wide-open spaces, sprawling ranches, and spectacular Sierra views. Reno is emerging as one of the best places to live in the nation while the ambiance of Truckee attracts the wild west feeling with fun restaurants and beautifully appointed golf communities. We are proud to call the High Sierra our home. Discover

how we can assist you!

DONOVAN GROUP LUXURY TEAM NV BROKER SALESPERSONS, CRS, CLHMS

775 750 2190 | 775 303 2672 | 775 750 7339 donovangroup@chaseinternational.com inclinevillagelife.com NV BS.52696 | NV BS.143530 | NV LIC S 094609

Kerry Donovan

Megan Parr Warren

Kevin Donovan

4


luxury

insights

Lake Tahoe

Truckee

The 2021 Lake Tahoe luxury market continues to outperform 2020 (our best year on record) through Q3. The great migration to our area continues to keep inventory levels well below prior years, driving up the value of homes significantly.

Truckee continued to set records with 389 homes selling over $1 million, a 36% increase from 2020, which was a record year also. The median price was down 4% to $1,669,500 from $1,740,000. Volume was up an impressive 41% from our previous record-breaking 2020. Martis Camp continues to be the most affluent area in the Truckee market, with the highestpriced home selling for $12,975,000.

Last year at the end of the third quarter, there were 430 single-family homes sold over $1 million. In 2021, we closed a whopping 555 homes: an increase of 29%. Leading the way is South Shore with an 88% increase followed by North and West Shore at a 56% increase and the East Shore up 40%. Only Incline Village saw a decrease of 13% solely caused by a lack of inventory. Chase International sold three of the top four Incline Village and Crystal Bay homes in 2021. The first sale was a four+/acre Crystal Bay Lakefront Estate parcel, followed by an Incline Village lakefront property for $32,500,000 and a new construction contemporary lakefront in Crystal Bay for $25,370,000. Chase sold three out of the top five sales over $20 million. Never in our history have we seen so many ultrahigh-end estates sell in nine months. Currently, we have set a record for sales over $20 million in 2021. The leading lakefront sales volume was in the North and West Shore, CA, with a 72% increase. On the East Shore, sales volume was down 25% due to a lack of inventory. Median prices were up 179% in Incline Village, 97% in South Shore, and 76% on North and West Shores.

Reno-Sparks Reno-Sparks knocked it out of the park with a 108% increase in homes over $1 million, setting a record for the area. Sales volume is up an unbelievable 125%, and the median price is up 4%. The highest-priced home in the Reno-Sparks area sold for $6,700,000 in Southwest Reno, making it the third-highest home sale in Reno history.

Carson Valley Carson Valley continued its upward trajectory with a jawdropping 114% increase in units sold over $1 million and a 113% increase in sales volume. The median price rose 18%. The highest price sales in the Carson Valley were two ranches, one for $12,000,000 and the other for $9,500,000, with Chase International representing both the buyer and seller.

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CRYSTAL COAST | OFFERED AT $32,000,000 LISTED BY DONOVAN GROUP LUXURY TEAM


Properties Sold Over $1 Million SINGLE FAMILY RESIDENTIAL HOMES AT END OF Q3 2021 VS 2020

p 24%

 -1%

glenbrook, nevada

VOLUME 2021: $316,200,200 2020: $255,436,522

p 40%

South Lake Tahoe

p 72%

p 88%

p 2%

p 80%

p 57%

p 1%

 -5%

 -28%

p 27%

p 41%

p 36%

 -4%

p 125%

p 108%

p 4%

p 113%

p 114%

p 18%

East Shore Lake Tahoe from stateline north to

california

West/North Shore california

Incline Village nevada

Truckee

northstar, squaw valley

and alpine ski areas, california

Reno/Sparks nevada

Carson Valley nevada

VOLUME 2021: $216,904,680 2020: $126,470,807

VOLUME 2021: $413,959,078 2020: $230,350,139

VOLUME 2021: $555,947,303 2020: $582,412,876

VOLUME 2021: $932,529,070 2020: $662,384,282

VOLUME 2021: $704,974,401 2020: $312,943,243

VOLUME 2021: $144,015,015 2020: $67,725,979

UNITS 2021: 102 2020: 73

UNITS 2021: 135 2020: 72

UNITS 2021: 159 2020: 101

UNITS 2021: 160 2020: 221

UNITS 2021: 389 2020: 285

UNITS 2021: 434 2020: 209

UNITS 2021: 75 2020: 35

MEDIAN PRICE 2021: $1,912,500 2020: $1,925,000

MEDIAN PRICE 2021: $1,325,000 2020: $1,295,000

MEDIAN PRICE 2021: $1,600,000 2020: $1,580,000

MEDIAN PRICE 2021: $2,181,500 2020: $1,720,000

MEDIAN PRICE 2021: $1,669,500 2020: $1,740,000

MEDIAN PRICE 2021: $1,377,950 2020: $1,327,183

MEDIAN PRICE 2021: $1,500,000 2020: $1,275,000

Information gathered from Incline Village, Tahoe Sierra, Sierra Nevada, NNRMLS and South Lake Tahoe Board of Realtors MLS 9/30/21.

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Tahoe Lakefront Sales SINGLE FAMILY RESIDENTIAL HOMES AT END OF Q3 2021 VS 2020

MEDIAN PRICE $25M 179%

+20%

-10%

$15M

76%

97%

$5M

-25%

-48%

$0 EAST SHORE

SOUTH SHORE

NORTH & WEST

INCLINE VILLAGE

$6,350,000 $8,500,000 2021 2020

$7,272,500 $3,685,000 2021 2020

$7,821,000 $4,438,500 2021 2020

$25,370,594 $9,100,000 2021 2020

VOLUME SOLD $150M $125M

72% 8% -7%

$100M $75M $50M

+105%

$25M -55%

$10M $0 EAST SHORE $142,575,000 $131,525,000 2021 2020

SOUTH SHORE $14,545,000 2021

$32,050,000 2020

NORTH & WEST $158,542,250 2021

$92,181,416 2020

INCLINE VILLAGE $118,670,594 $127,598,000 2021 2020

Information gathered from Incline Village, Tahoe Sierra, Sierra Nevada, NNRMLS and South Lake Tahoe Board of Realtors MLS 9/30/21.


2021 LUXURY MARKET REPORT

Tahoe Lakefront Sales SINGLE FAMILY RESIDENTIAL HOMES AT END OF Q3 2021 VS 2020

EAST SHORE

2021

2020

Change

Volume

$142,575,000

$131,525,000

8%

Units

13

13

0%

Median Price

$6,350,000

$8,500,000

-25%

Average Price

$10,967,305

$10,117,307

8%

SOUTH SHORE

2021

2020

Change

Volume

$14,545,000

$32,050,000

-55%

Units

2

9

-78%

Median Price

$7,272,500

$3,685,000

97%

Average Price

$7,272,500

$3,605,556

102%

NORTH & WEST SHORE

2021

Volume

2020

Change

$158,542,250

$92,181,416

72%

Units

19

19

0%

Median Price

$7,821,000

$4,438,500

76%

Average Price

$8,339,592

$4,851,653

72%

INCLINE & CRYSTAL BAY

2021

2020

Change

Volume

$118,670,594

$127,598,000

-7%

Units

5

11

-55%

Median Price

$25,370,594

$9,100,000

179%

Average Price

$23,734,119

$11,599,818

105%

Information gathered from Incline Village, Tahoe Sierra, Sierra Nevada, NNRMLS and South Lake Tahoe Board of Realtors MLS 9/30/21.

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Donovan Group Significant Sales 2020-2021 LUXURY SALES HIGHLIGHTS

Crystal Bay, Nevada

Seller Representation

Crystal Bay, Nevada

Seller Representation

INC L IN EVILLAGELIF E.COM | 775 750 2 19 0


Donovan Group Significant Sales 2020-2021 LUXURY SALES HIGHLIGHTS

Incline Village, Nevada

Crystal Bay, Nevada

Buyer Representation

Seller Representation

11

11


Donovan Group Significant Sales 2020-2021 LUXURY SALES HIGHLIGHTS

Incline Village, Nevada

Seller Representation

Incline Village, Nevada

Seller Representation

INC L IN EVILLAGELIF E.COM | 775 750 2 19 0


Donovan Group Significant Sales 2020-2021 LUXURY SALES HIGHLIGHTS

Incline Village, Nevada

Seller Representation

Incline Village, Nevada

Seller Representation

13

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ALPINE ACRES ESTATE | OFFERED AT $18,000,000 LISTED BY DONOVAN GROUP LUXURY TEAM


The

luxury leader

Chase continues to lead the luxury real estate market, selling more homes over $5, $10 and $20 million year after year after year. In 2020 we're proud to have sold $2.5 billion in real estate, serving 3,277 families and individuals. With a history of unparalleled success, in 1996 and 1998, when the highest-priced property sold in New York City was $12 million, Chase negotiated record-breaking sales of $50 million and $30 million, unheard of in the nation at that time. We held that record nationwide for eight years. Bolstered by our luxury heritage and strength of character, Chase Sales Executives excel at innovation, creativity and negotiation, bringing about a happy and productive result for each client. We are grateful to our loyal clientele, our talented colleagues and our dedicated real estate professionals for the success we have enjoyed for 35 years.

CHASEI NT ERN AT IO NAL.CO M 15 15


Properties Sold over $20 million NUMBER OF TRANSACTIONS SOLD, TOP FIVE COMPANIES

24 22 20 18 16 14 12 10 8 6 4 2 0 24

10

6

5

5

Sierra Sotheby’s

Oliver Luxury Real Estate

Lakeshore Realty

Tahoe Luxury Properties

Information gathered from MLS and County records. Transactions since 1989 through 10/4/2021.

1605 PINECONE CIRCLE OFFERED AT $9,550,000


Properties Sold over $10 million NUMBER OF TRANSACTIONS SOLD, TOP SIX COMPANIES

70

60

50

40

30

20

10

0

75

29

27

20

20

17

Sierra Sotheby’s

Oliver Luxury Real Estate

Lakeshore Realty

Coldwell Banker IV/ZC

Tahoe Luxury Properties

Information gathered from MLS and County records. Transactions since 1989 through 10/4/2021.

ALPINEACRESESTATETAHOE.COM OFFERED AT $18,000,000

17 17


Properties Sold over $5 million NUMBER OF TRANSACTIONS SOLD, TOP SIX COMPANIES

220 200 180 160 140 120 100 80 60 40 20 0

237

98

84

79

56

52

Sierra Sotheby’s

Coldwell Banker IV/ZC

Oliver Luxury Real Estate

Tahoe Luxury Properties

Lakeshore Realty

Information gathered from MLS and County records. Transactions since 1989 through 10/4/2021.

480GONOWABIETAHOE.COM OFFERED AT $28,850,000


Donovan Group

luxury collection

EXTRAORDINARY PROPERTIES for EXTRAORDINARY PEOPLE

EXCEPTIONAL

1919


Crystal Coast Located on Lake Tahoe’s Crystal Coastline in Crystal Bay, Nevada. This massive lakefront acreage is one of the last, great untouched swathes of land. Exclusively offered at $32,000,000 | Donovan Group Luxury Team | 775 750 2190 crystalcoasttahoe.com


Gonowabie Unparalleled design and quality, new construction lakefront estate with private pier on peaceful and private Gonowabie Road, in Crystal Bay, NV. Offered At $28,850,000 | Donovan Group Luxury Team | 775 750 2190 480gonowabietahoe.com 21


Alpine Acres Estate Tahoe Unrivaled seclusion in the coveted community of Incline Village, NV, Alpine Acres Estate Tahoe elevates the standards of contemporary luxury mountain living. Offered At $18,000,000 | Donovan Group Luxury Team | 775 750 2190 alpineacresestatetahoe.com


Pine Cone Circle Located in a lakeside neighborhood setting offering unique amenities include Pine Cone Circle Beach, common area shared pier, buoy field and sandy beach. Offered At $9,550,000 | Donovan Group Luxury Team | 775 750 2190

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Country Club Drive Brand NEW gated Mountain Modern sanctuary currently under construction fronting the Incline Championship Golf Course on the 7th Fairway. Offered At $9,500,000 | Donovan Group Luxury Team | 775 750 2190


Tahoe's Most Exciting New Mountain and Lake Community

Clear Creek Tahoe Intimate. Private. Spacious.

Clear Creek

INTIMATE. PRIVATE. SPACIOUS.

Homesites From $825,000. Homes starting at $3,850,000. clearcreektahoe.com

HOMESITES FROM $360,000

|

C L E A R C R E E K TA H O E

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WHAT IS A PIER ON LAKE TAHOE WORTH BY JACKIE GINLEY, BROKER ASSOCIATE

INCLINE VILLAGE LAKEFRONT SOLD BY THE DONOVAN GROUP LUXURY TEAM FOR $32,500,000


A pier can add significantly to the value of a Tahoe Lakefront home, and that’s a number that’s likely to rise in the coming decade, as the odds of getting one become more and more slim. After decades of legal and regulatory wrangling, a new rule took effect in 2019 limiting the number of piers that can be built at the Lake. This summer, for example, only 4 lucky lakefront owners will win the right to construct their own pier. Applications were rolling in to the Tahoe Regional Planning Agency (TRPA) as this article went to print, but judging from past demand, we will likely see dozens of lakefront owners walk away disappointed this summer. (In 2019, 83 lakefront owners applied for the right to build a private pier, and only 5 were granted.) Piers at Lake Tahoe were for many years unregulated. That’s why you see flat top boathouses, a throwback to the 1950s & ‘60s, and even rock crib piers that look like private marinas dotting the shoreline. One 4-bedroom on the East Shore, for example, sold for almost $1,700/square foot last year, thanks in part to the sprawling breakwater and lakefront amenities it offers. You can’t build something like that today, and the value of that is obvious to those seeking Tahoe’s Lakefront lifestyle. Chase International Broker Mike Dunn sold the home again this year for more than what it closed for last year. That property, like many lakefront sales, closed for cash last year. But a seller who accepts a financed offer for a lakefront home will be subject to an appraisal, and appraisers take an unemotional view of a property. Intangibles like the hand-hewn beams that grace a property like Julia Morgan’s Bow Bay, or the rays of the setting sun from the end of a pier near Madden Creek on the Westshore, won’t necessarily boost the bottom line on an appraisal. When it comes to an appraisal view on piers, “there’s just not one number you can assign to it,” said Trinkie Watson, a seasoned lakefront broker at Chase International. Appraisers will consider the slope of the lot and whether a pier is deep water or shallow. That also becomes important in drought years, because a deepwater pier means you’ll be more likely to still be able to pull your boat up to onboard guests.

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A shallow pier might add $500,000 to the value of a lakefront home, and a deep-water would add more, she said. Throw in a lift with buoys, and the value of the lakefront home might appraise for $1.5 million more than a pier-less neighboring home. That was also reflected in the market last year for areas of the North Shore, where one home with an extensive pier and flat-top boathouse sold for $9.5 million, despite the fact that the home itself was small and somewhat dated. Compare that to a beautiful North Shore home that closed for a little over $7.6 million, almost 5 percent under asking in an otherwise hot market. It had 5 bedrooms and more than 4,800 square feet of contemporary living space with a gorgeous lakefront grounds. But what it lacked was a pier. And getting a pier these days is not so simple as just applying for one. From now until 2033, only 13

lucky homeowners will win the right to build a pier on their lakefront property. Some areas of the lake, such as stream mouths, will be entirely off limits, but for those with eligible properties, the application process involves submitting a fairly complex application that includes scenic and other mitigation. If all that looks good, one is then thrown into a lottery where only four winners will get the right to build a private pier this year. Applications are open only every other year through 2033. In 2023, for example, only one private pier permit will be awarded. Piers serving multiple parcels will be a little easier to secure; eight of those will be granted this year, nine in the application round two years from now, and 11 in the years moving forward. We’re likely to see some lakefront owners offering to share a pier with their neighbor, or buy their neighbor’s rights, which allows them

to come forward with a “multiple parcel” pier application. How we got to this place is a history lesson infused with regulatory action to protect lake clarity and lawsuits. The construction of piers, dating back to the era that preceded the pile driver, was a Wild West of building for much of the 20th Century. Then TRPA stepped in. In October 2008, the agency approved a plan that would allow up to 128 private piers, lifting a moratorium on new pier construction that had been in effect for almost two decades. Two environmental groups sued, and the judicial opinion in that lawsuit laid the foundation for the plan we are living with today, which will allow for 71 more multiple and only 13 private piers through 2033. So what will be the future value of a pier at Lake Tahoe? Potentially … priceless.


CRYSTAL COAST | OFFERED AT $32,000,000 LISTED BY DONOVAN GROUP LUXURY TEAM

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Our partnerships take your property into every global market. Chase International is connected to 550+ top-tier independent real estate brokerages, from the San Francisco Bay Area to New York City and beyond, spanning 60 countries on six continents around the globe, including our London office. Through this partnership we reach over 120,000 real estate agents, who represent more $1M+ properties than any other real estate company in the world. Together we close over $500 billion in annual sales, with one of our transactions closing every 15 minutes.

WHO’S WHO IN LUXURY REAL ESTATE A worldwide collection of top brokers representing the finest luxury properties across the globe, Who’s Who in Luxury Real Estate has been leading the real estate industry since 1986. This hand-selected group of more than 130,000 professionals with properties in more than 70 countries collectively sells over $300 billion of real estate annually, making it the most elite and comprehensive luxury real estate network in the world.

LUXURY PORTFOLIO INTERNATIONAL Luxury Portfolio International® is the luxury face of Leading Real Estate Companies of the World® the largest global network of premier locally branded companies dominated by many of the world's most powerful independent luxury brokerages.

LEADING REAL ESTATE COMPANIES OF THE WORLD Through this premier International magazine for luxury estates, Chase features its prestigious properties twice a year to target affluent clients. Its circulation includes an exclusive distribution to each member’s private database, and the world’s premier hotels, international airports and bookstores.

MAYFAIR INTERNATIONAL REALTY We have expanded our London office to include United Kingdom’s Mayfair International Realty in response to the increased traffic of overseas buyers. By doing so, we have further provided a marketing and sales platform for our properties to European investors. Mayfair International connects to 125 real estate brokerages with 350 offices, each with a stellar reputation in their respective countries. Country Life uploads all Chase properties over $1 million to their magazine website, Countrylife.co.uk. Country Life has been a national institution in the U.K. for over 100 years; a copy is hand-delivered to the Royal Family each week. Mayfair provides advertising and public relations opportunities to ensure maximum exposure for Chase International listings.

LEADING ESTATES OF THE WORLD Through this premier International magazine for luxury estates, Chase features its prestigious properties twice a year to target affluent clients. Its circulation includes an exclusive distribution to each member’s private database, and to the world’s premier hotels, international airports and bookstores. ARTISAN

GRO UP

ARTISAN GROUP The Artisan Group is a strategic alliance of high image real estate companies reaching from the greater San Francisco Bay area to Lake Tahoe. Chase clients benefit from this prestigious group’s network of professional luxury real estate brokers. Through this alliance, Chase is able to connect with qualified buyers in our major feeder markets.

INC L INEVILLAGELIFE.COM | 7 75 750 2 19 0


Donovan Group Luxury Team INCLINE VILLAGE SALES VOLUME LEADERS YEAR AFTER YEAR Representing over one billion dollars in sales, we are honored to represent the most distinguished clientele and their properties within a community that we are proud to call ‘home.” Throughout the decades, our preeminent clients have continued to trust our intuitiveness to their needs and respect for their investments. Today, as leaders in the sale of the markets’ most luxurious estates, and consistent top producers, we continue our honor-bound commitment to apply our global marketing expertise on our clients’ best behalf. As a family team, we pack a powerful punch. From our local market knowledge to our Bay Area background (and U.C. Berkley alumni contacts), we take great pride in engaging our connections to ensure the most rewarding and seamless transactions for all involved. Kevin is a TahoeReno local with sales acumen. Growing up in Incline Village and graduated from the University of Nevada Reno. All combined, we look forward to sharing our passion for our community and commitment to our clients who seek a real estate team with a zest for success.

Kerry Donovan

Megan Parr Warren

Kevin Donovan

Vice President of Luxury

Luxury Sales Specialist

Luxury Sales Specialist

Donovan Group Luxury Team

Donovan Group Luxury Team

Donovan Group Luxury Team

NV Broker Salesperson

NV Broker Salesperson

REALTOR

CRS CLHMS | NV LIC # BS 52696

CRS CLHMS | NV LIC # BS 143530

NV LIC S 094609

kdonovan@chaseinternational.com

mwarren@chaseinternational.com

kevindonovan@chaseinternational.com

775 750 2190

775 303 2672

775 750 7339

Kerry Donovan

Megan Parr Warren

Kevin Donovan

31


LUXURY

© 2021 Chase International. All rights are reserved by Chase International, and content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior written permission of Chase International. All information is deemed reliable while not guaranteed accurate.

C HASEI N T ERN ATI O N A L .CO M | 86 6 470 8863


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