Matty’s Minute: A December Market Update
Greetings;
In November 2024, the Tahoe Truckee real estate market demonstrated a seasonally adjusted, cautious recovery from the sluggishness that marked much of the previous two and a half years. While sales velocity remained below average, there was a discernible uptick, particularly in the highest reaches of the market, compared to November 2023, suggesting a mild reawakening of buyer interest in this region.
A remarkable highlight of the month was the single : a stunning property in Martis Camp that fetched an astounding $23,600,000, represented by Tahoe Mountain Realty. This sale was one of four transactions above the $10 million threshold in November alone, accounting for a third of the total eight-figure sales recorded throughout the year. These high-profile transactions suggest a gradual resurgence in the upper tier of the market, indicating that luxury buyers are re-engaging after a prolonged period of caution following the overheated conditions of 2020 through early 2022. Notably, 4 of the 8 largest transactions of 2024 were finalized in November.
Several factors are contributing to this renewed optimism as the end of 2024 draws near. Clarity surrounding the recent election, a slight improvement in mortgage rates, and favorable winter conditions have all created a more encouraging environment for buyers and sellers alike heading into 2025. November revealed that overall sales volume has remained largely on par with 2023. Notably, the average price of homes has increased by 7% year-over-year, with the median price reflecting a more modest uptick of just below 3%.
The market’s strength is particularly evident in transactions above $1 million and $2 million, with both segments matching 2023’s year-to-date totals. These thresholds now represent a larger share of overall sales—rising by 4% and 2%, respectively. Martis Camp and Tahoe lakefront properties continue to lead the luxury market, each recording three sales in November, including two above $10 million, reinforcing their roles as the region’s premier real estate categories.
As December typically ushers in a slowdown in activity, inventory levels are dwindling as many sellers choose to delist their properties. This seasonal trend often leads homeowners to explore ski leases or enjoy their properties for one last winter season before returning to the market with renewed hope in the spring. However, a strong start to the ski season can invigorate demand, with families likely to make spontaneous visits to their second homes before the more structured holiday gatherings take place. This kind of spontaneity, reminiscent of the joys of Tahoe's second-home market, not only boosts immediate engagement but may also lay the groundwork for increased transactions in early 2025.
While the market continues to contend with below-average sales velocity, November revealed clear signs of progress. Luxury properties are performing exceptionally well, and with supportive economic conditions, the outlook for the Tahoe-Truckee real estate landscape remains increasingly optimistic.
-Matty