North Tahoe – Truckee Market Report – May 2024

Coldwell Banker – 2024 Real Estate Market Report

Residential Properties – Single Family Homes and Condominiums

Activity January through May 2024

Residential Sales Summary 2024

Total Residential Sales:

Summer is upon us!  The weather is gorgeous, and the Tahoe/Truckee real estate market is building toward the summer busy season.

Looking in the rear-view mirror, closed transactions continue to come in below the long term averages.  There were 72 sales in May which is 80% of the 5 year average for the month and 75% of the 10 year average.  Year to date sales are at 80% of the 5 year average and 77% of the 10 year average.

The first 4 months of the year have been defined by the same factors we saw through 2023 . . . low supply coupled with tempered demand.  The good news is underlying activity feels encouraging.  Supply is increasing (not just seasonally, but also relative to last year) and demand is very 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:   So far this year, the median residential sales price is $1.15 million, and the average is $1.471 million.

For single family homes the median is $1.3 million, and the average is $1.69 million.

For condos the median price is $665k and the average is $960k.

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 82% compared to 2019 (from $715k to $1.3m).

For condos the median sales price is up 49% compared to 2019 (from $437k to $650k).

Active Residential Inventory:

Active Listings:  In line with our normal seasonal pattern, inventory is climbing from winter lows to summer highs.  There are 400 residences currently on the market, up from 275ish at this time last year.  However, in 2019 the number was in the mid 500s so there’s still a way to go to reach “pre covid norms”.

Current Pending Sales:  The number of pending sales is at 112 (up from 66 last month).  About 86 residences went into contract in May.

Current inventory represents about 4.65 months of supply relative to May activity.  Demand has been quite solid in early June.  So, we anticipate this number leveling out between 3 to 4 months of supply through most of the summer.

Sales Under $500,000:  Through May there were 23 residential sales under $500k, representing 5% of total sales.  In 2023, 6% of sales were in this range.

Mid-Range Market Sales $500,000 to $999,999:   167 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:   173 residences sold between $1m – $2m, representing 39% of total sales.  In 2023, 37% of total sales were in this range.

Luxury Home Sales Over $2 Million:   81 residences have sold over $2 million, representing 18% of total sales.  This includes 10 sales over $5 million.  In 2023, 18% of sales were in this range.

What’s Going On Looking Forward?

The real estate market has sputtered along 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.  So far this year, supply has been stronger than last year, but still below average compared to 10 year trends.

As mentioned above, underlying activity is picking 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 summer season. 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 couple months, some homes priced under $1 million have seen 2-4 offers, with 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.

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 Your Coldwell Banker Agent Today to Find Out More about the Opportunities Available in the North Lake Tahoe-Truckee Market.