LAKE TAHOE — Sierra Sotheby’s International Realty’s Lexi Cerretti recently closed her third lakefront home sale in Lake Tahoe this summer, with the sale prices at $11.875 million, $6.25 million and $5.325 million.
Lakefront sales in Incline Village and Crystal Bay have taken hold, with 11 lakefront homes and five lakefront condos sold this year, one lakefront home pending and five lakefront condos pending sale, currently. In comparison, there were only 10 lakefront home and condo sales for the entire year in 2012, and three of those closed in December, marking the beginning of this recent buying spree.
Activity has increased around Lake Tahoe, and buyer testimonials show Nevada sales are being spurred by California buyers seeking Nevada income and corporate tax refuge from California Proposition 30, a measure that passed last year to increase personal income tax for California residents with an annual income more than $250,000 through 2018, and increased state sales tax through 2016.
“Many high-net worth buyers are looking to either establish residency in Nevada, or purchase second homes with plans to transition up to Lake Tahoe in the future from California,” said Cerretti. “Homebuyers from Silicon Valley, Wine County and the San Francisco Bay Area have seen prices steadily climb in their market in the past couple of years, where now prices in Tahoe are just starting to climb and are relatively a very good value.”
Cerretti has represented the buyer or seller in three of the 11 lakefront homes sold year to date in Incline Village and Crystal Bay, Nevada. Sales include 869 Lakeshore Boulevard, a 10,000 square foot French chateau with beautifully landscaped grounds on just under 1 acre sold for $11,875,000 in February; 843 Lakeshore Boulevard, a 3,298 square foot Tahoe home set right on Lake Tahoe with two moorings sold for $5,325,000 in July; and 28 Crystal Drive, a 4,180 square foot newer construction home on more than an 1 acre with 120 feet waterfront featuring extensive custom ironwork, stone, and craftsman details sold for $6,250,000 in July.
“My recent buyers are very savvy as to what is a good value, and even viewed several lakefronts not yet on the market in search of the best properties. Newer construction homes for sale on Lake Tahoe are a rarity, especially under the $10 Million price point in Incline Village,” Cerretti said. “Two of my recent lakefront sales were newer construction homes on large lots, and the third was priced low with potential to add significant value in rebuilding or remodeling.”
There are 25 total active lakefront listings (20 homes and 5 condos) and with a rate of 16 sales in the past 8 months, there is just a 12-13 month supply of lakefront properties available in Incline Village and Crystal Bay Considering some of the listings have been on the market for many years, this is a big increase in the rate of sales. Looking at the first 11 months of 2012, there were only 7 sales, and that number has nearly doubled in 2013 through August.
Lakeshore Boulevard is undergoing another dramatic makeover, as many homes are under construction and many others are being remodeled. Overall, lakefront sales jumped 26 percent in number of units sold in 2012 around Lake Tahoe, and home sales in Incline Village were up 57 percent. Inventory is beginning to drop, and this year will mark a turnaround in the Tahoe real estate market.