This week’s market update reads like a past-tense recap of last week’s forecast. Just as expected, Northstar made the absolute most of the holiday week with optimal ski conditions and a remarkable array of activities throughout the resort. Their market share is undoubtedly robust among North Lake Tahoe resorts exposing enthusiasts of other mountains to all that Northstar has to offer. Strong compliments to Northstar’ marketing team for an exceptional job getting the word of optimal ski conditions; including the exciting launch of Shaun White’s 22 foot halfpipe, out in an entertaining and informative manner. This was the most effective use of social media I’ve observed. One example:  http://vimeo.com/34299532

Real estate activity also played out according to forecast. While ski conditions were maximized for the available snow, people seemed to have significantly more disposable time than is typically the case during what is typically a very family-intensive week. Our Tahoe Mountain Resorts showrooms were consistently busy with over 100 total visitors passing through.  As expected, these inquiries were generally broad and preliminary with consideration coming further in the season. The interests of the consumers seemed to span all price points, including a tolerance for the most premium, and were seeking features consistent with much of what our product is geared to delivery; specifically a gathering place for family with great access to skiing and recreation. There was very little discussion of distress, foreclosure or other terms that have dominated our real estate vocabulary recently.  We rarely write contracts this time of year but are generally able to gauge overall demand and have a very positive sense heading into winter.

The introduction of the Home Run Townhomes, found Mountainside just down from the Ritz-Carlton, was tremendously productive as this was the first opportunity for consumers to experience this product under-construction. With all residence in Phase I essentially framed, the individual personality of each residence is now apparent; particularly how each relates to the ski slope  flanking either side of the neighborhood. While not formally released, The Glades has received great attention via simple world-of-mouth transmission for the remarkable quality in each of its 25 custom homesites.

The market in general is clearly ready for good news in the real estate sector and the media has graciously obliged with several features on these new Northstar Mountainside Communities. Of particular interest was a piece recently run by CNBC:

http://video.cnbc.com/gallery/?video=3000064473

The tangible results of this week will become apparent in the coming weeks and months as the sincere inquiries mature into real prospects. The few relevant closings this week are generally more indicative of shoulder season conditions than a beacon of the season to come.

At Northstar there was a surge of activity in 2-bedroom Village condos:

·         7502 Big Horn, a top-floor 2-bedroom closed escrow for $845,000. At $608 / square foot, this sale restores a more realistic valuation in comparison to the short sale recently reported at $475.

·         2305 Iron Horse North is pending short sale at $619,500 asking.·         Residence #403 is One Village Place is pending sale for $1,075,000 asking; another great comparable for the Village.

·         Additionally, 1311 Iron Horse South, a 3-bedroom, is immediately pending sale for $1,100,000 asking upon returning to the market.

Elsewhere, a handful of deals closed escrow that provide award-winning values to the new owners for deal-of-the-century in their respective classes.

·         At Lahontan, homesite #373 closed escrow for $51,250.

·         Also at Lahontan, #238 closed for $70,000.

·         At Gray’s Crossing, M-56 closed for $79,000. This deal along with several others in the past quarter, demonstrate some resilience for high-quality golf course frontage homesites at Gray’s Crossing. With three homes currently under construction, I expect to see quite a bit of new activity in this community in 2012.

·         Staying at Gray’s Crossing, the finest deal for 2011 is awarded to the new owners of #23 at Sierra Cove. This extraordinary home on the 9th tee box closed escrow for $900,000.

The finest remaining deal has got to be at Old Greenwood where Villa #15 is available now for $604,000. This project offers the best combination of quality and proximity for a beautiful duplex unit found on the first tee of the Jack Nicklaus Signature Golf Course and directly across from the Old Greenwood Pavilion.

Look for a 2011 year in review report in coming weeks. Until then, best wishes for a happy and healthy 2012.

Regards,

Tim Lampe and Steve Kegel