2023 Real Estate Market Report
North Lake Tahoe -Truckee
Residential Properties – Single Family Homes and Condominiums
Activity January- August 2023
Residential Sales Summary 2023
Total Residential Sales:
Despite what felt like a very quiet market, we are rapidly approaching $1 billion worth of residential real estate sales in the North Lake Tahoe and Truckee Region so far this year. In the 2nd half of the year, activity has picked up significantly. I do not feel comfortable using the word “busy” to describe the activity, but I think “steady” is an appropriate description.
In August, 142 residences sold. That is up from 126 sales in August 2022 and is 83% of the 5 year average for the month and 87% of the 10 year average. This is the closest we have come to the 5 and 10 year averages this year. However, if you remove the 2 COVID “boom” years, the average of the last 5 non covid years comes in at 161 transactions and puts this August at 88% of that number. Again, not “busy”, but steady and healthy.
Through the end of August, 607 residences have sold this year. This marks the lowest January through August total in the last 10 years and is 71% of the average of the 5 years immediately prior to COVID.
Median and Average Sales Prices:
The median sales price for residential real estate YTD through August came in at $1.075 million while the average was at $1.578 million.
For single family homes, the median sales price was $1.2 million. That represents a decrease of 5% compared to the same period in 2022, and is still 60% higher than the same period in 2019 (pre-pandemic).
For condos, the year to date median was $725,000. That’s down 4% compared to the same period in 2022, but up 74% compared to 2019.
Despite the low numbers of transactions, the strength in pricing has us tracking toward the 3rd highest sales volume in the last 10 years.
Active Residential Inventory:
Active inventory got as high as 370 residences over the Labor Day Holiday but is now back into the 345-355 range (where it has been most of the summer). Last year, at this time, inventory had already dipped down to 325 residences, but in 2019 the number was closer to 680. Looking at long term numbers, inventory is still at the lowest levels we have seen historically prior to COVID (Around 60% of the average for the 5 years prior to COVID and 40% of the 10 year average) for this time of year.
Current Pending Sales: The number of pending sales is at 165, which is the highest number we have seen this year (the number was in the 130-150 range most of summer). About 150 residences went into contract in August.
Current inventory represents about 2.4 months of supply. Historically any number below 5 months of supply is considered a seller’s market. But, this is a fairly balanced market, with slight advantages to buyers or sellers in different price ranges.
Sales Under $500,000: January through August there were 41 sales under $500k, representing 6% of all residential sales. For the same period in 2022, 6% of sales were under $500k.
Mid-Range Market Sales $500,000 to $999,999: 232 residences have sold between $500,000 and $999,999, representing 38% of total sales. In 2022, 35% of sales were in this price range.
High End Home Sales $1,000,000 to $1,999,999: 221 residences sold between $1m – $2m, representing 36% of total sales. In 2022, 38% of residential sales were in this range.
Luxury Home Sales Over $2 Million: 113 residences sold over $2 million, representing 20% of sales. This includes 29 sales over $5 million. In 2022, 21% of residential sales were over $2 million including 38 sales over $5 million.
What’s Going On Looking Forward?
Some drizzly weekends in August and early September have people already looking forward to winter! Not so fast, though . . . it’s still selling season in the real estate market. Demand still feels solid, and there are still some homes coming onto the market. We should see a solid number of residences going into contract in September, and possibly more into October.
In a good year, fall is a very busy season for us. Our hunch is there are still some motivated seller’s out there (people who don’t want to own a home during another winter up here!). As well, there are motivated buyers (people who are HOPING for another big winter!).
Sellers, keep in mind, this is still a much better time to be a seller than it was in 2019 (which seemed like a very healthy market at the time!). You can expect a similar amount of time on market, but much higher sales prices!
Buyers, keep in mind, this is the most balanced market we have seen in the last 3 years. You now have the following things working in your favor:
- The ability to negotiate price is back!
- The ability to inspect a property and have normal contingencies is back!
- The ability to negotiate repairs is back!
- Yes, interest rates are climbing, but if they continue to climb you will be glad you locked in now. If/when they do reverse course, you can refinance to take advantage!
Contact Me Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.
Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Realty does not guarantee the data’s accuracy. Data maintained by the MLS may not reflect all real estate activity in the market. CA-BRE License # 01908304