Uncategorized April 24, 2024

Tahoe | Truckee 2024 Q1 Market Report

Coldwell Banker

2024 Real Estate Market Report

North Lake Tahoe -Truckee

Residential Properties – Single Family Homes and Condominiums

Activity for Q1 2024

Residential Sales Summary 2024

Total Residential Sales:

Q1 is in the rearview mirror.  For the quarter, the number of residential transactions was up 16.8% compared to Q12023.  However, with 188 sales, it was still the second slowest Q1 of the last 10 years coming in at 75% of the 5 year average and 77% of the 10 year average. The quarter was defined by the same factors we saw through 2023 . . . low supply coupled with tempered demand.

The good news is underlying activity feels encouraging.  We’re not anticipating a monster year, but it does seem like it will be busier than last year and closer to historical norms (when looking at number of transactions) than 2023 was.

Median and Average Sales Prices:   For the quarter, the median residential sales price was $1,150,000 and the average was $1,504,915.

For single family homes the median was $1.325 million and the average was $1.766 million.

For condos the median price was $650,000 and the average was $905,543.

Prices are still at a very healthy premium from where they stood in 2019 (before COVID).  For Q1, the single family home median sales price is up 85.3% compared to 2019 (from $715k to $1.325m).

For condos the median sales price is up 48.7% compared to 2019 (from $437k to $650k).

Active Residential Inventory:

Active Listings:  Spring is in the air, and inventory is starting to climb from winter lows.  There are 217 residences currently on the market, up from 165 at this time last year.  Hower, in 2019 the number was over 350.  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 66 (down slightly from 71 last month).  About 63 residences went into contract in March.

Current inventory represents a little over 3.3 months of supply relative to March activity.  Historically any number below 5 months of supply is considered a seller’s market.  But, this is the most balanced market we have seen in years.

Sales Under $500,000:  In Q12024 there were 13 residential sales under $500k, representing 7% of total sales.  In 2023, 6% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999:   71 residences sold between $500,000 and $999,999, representing 38% of total sales.   In 2023, 40% of sales were in this price range.

High End Home Sales $1,000,000 to $1,999,999:   66 residences sold between $1m – $2m, representing 35% of total sales.  In 2023, 37% of total sales were in this range.

Luxury Home Sales Over $2 Million:   38 residences have sold over $2 million, representing 20% of total sales.  This includes 6 sales over $5 million.  In 2023, 18% of sales were in this range.

What’s Going On Looking Forward?

The real estate market continues to sputter along as it has for nearly 2 years since the COVID boom.  However, the inventory of homes for sale has not built up and prices are still substantially higher than they were pre COVID.

As mentioned above, underlying activity is starting to pick up. A strong stock market and steady interest rates is helping strengthen demand in our local market, which gives us reason to hope for increased activity in the coming year. The election, of course, will be an interesting variable to sprinkle in.

Multiple offer situations are making a comeback, particularly on homes priced under $1.5 million.    Over the last 6-8 weeks, many homes priced under $1 million have seen 2-4 offers, with some as many as 8.  As well the best new listings in the $1-2 million price range have drawn 2 to 4 offers.  We hadn’t seen a true bidding war (5+ offers) in a while, but it has happened recently on very special homes.

Though we are anticipating more supply this year than we saw in 2022 and 2023, low inventory will continue to be a big force on the supply side of the market.  Inventory is still around half of what we typically saw at this time of year in the pre-COVID benchmark years.

We expect below “normal” (by pre COVID standards) activity, measured by number of transactions,  to continue in 2024, but are hopeful to see transactions climb closer to normal averages as we get deeper into the year.

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 shorter 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!
  • Interest rates have dropped back from highs and are steady.

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