Matty’s Minute: An August Market Update

The summer selling season has begun with a bang for Tahoe Truckee real estate. July recorded 125 residential transactions, marking the most prolific month in 2024 and the first to exceed 100 sales since October 2023. The first five months of 2024 maintained a pace above 2023 production but below historic averages. June was the first month in 2024 to underperform compared to the previous year; however, July's strong performance returned to trend. The 125 residential sales in July represent a 21% increase from 2023, edging closer to average performance levels.

Throughout much of 2024, market activity has been heavily concentrated in the $1,000,000 to $2,000,000 range, as low to mid-level properties continue to show appreciation. The share of transactions above $1,000,000 increased to 55%. Similarly, sales greater than $2,000,000 account for 17.5% of all activity, surpassing 2023 levels and only slightly below the peak productivity of 2022.

Despite the improved activity in July, the ultra-premium market segment above $3,000,000 remains sluggish. However, lakefront homes have become highly desirable among capable consumers during the summer months.

Currently, there are 538 homes listed for sale, representing about five months of supply. This is the highest standing inventory in over four years. Breaking this down, 131 of these listings are below $1,000,000, with an average of 47 days on market. The $1,000,000 to $2,000,000 range has a proportionate 136 listings with 54 days on market. Above $2,000,000, there are 175 listings available, with an average of 114 days on market. Throughout 2024, the median price has been rising slowly, up 5% year-to-date, while the average price, which is significantly impacted by higher-end homes, has drifted downward by 3%.

During a typical sales cycle, consumers will visit 2-3 times to whittle down options before arriving at a purchasing decision. After a furious start to the season, second showings have moderated slightly. Anticipating a rate cut in the next 60 days, many consumers see the opportunity for more advantageous purchasing power toward the end of Q3. This is likely to put heavy pressure on sales activity in the weeks following Labor Day; already the peak period for deal making in any given year.

Savvy consumers, particularly those with the capacity to buy in cash, may find a unique opportunity to minimize their competition in the marketplace by taking action sooner rather than later.

We look forward to keeping you updated. 

As always, please contact me for more information about current market dynamics and/or to schedule a tour or listing consultation today. For more information, on Tahoe Mountain Realty’s position on the National Association of Realtors settlement agreement around antitrust litigation, please see below: TMR Ask Us
-Matty