Luxury properties around Lake Tahoe in California and Nevada saw heightened demand in 2016, with the sales volume of $1 million-plus homes increasing 28% year-over-year, according to a new market report.
A total of 242 single-family homes priced at $1 million and above sold last year in Lake Tahoe, a town famous for its scenic ski resorts and summer outdoor attractions, according to a year-end market report by local real estate agency Chase International released last week.
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Boosted by luxury sales, the overall residential markets in Lake Tahoe recorded a 17% increase in sales volume from 2015, with median price and the number of sales rising 12% and 8%, respectively, year-over-year.
There were 1,376 homes sold with a median price of $549,000 from Jan. 1 to Dec. 31, 2016, according to the report.
The most expensive area to buy a home was Incline Village, where the median price rose 11% to $1,016,500 and the percentage of homes sold over the million-dollar mark was up 35%. However, the East Shore saw the biggest increase, 65%, in homes sold for over a million.
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The most expensive home sold in 2016 was the Sierra Star in Incline Village, one of the largest lakefront estates in Lake Tahoe, according to Susan Lowe, corporate vice president at Chase International. The property, with three houses and a collector’s garage, sold for $25.25 million in January 2016. It came on the market in 2014 for slightly under $25 million.
The luxury segment in Lake Tahoe looks to continue to strengthen in 2017, but being a second home/vacation home market, "it is usually a discretionary purchase," Ms. Lowe said.
Write to Fang Block at fang.block@dowjones.com