Matty’s Minute: A March Market Update
The Tahoe Truckee real estate market continued with baby steps toward recovery in February. Outperforming last year by 20% in the shortest and typically the slowest period for closing in any given month. While the total number of transactions continues to lag historic averages, it is a marked improvement from the trough that persisted from mid-2022 through most of 2023. Historic averages indicate that transaction volume will increase every month through October.
Savvy winter buyers are recognizing that this may represent the moment when they are competing with the fewest competitors in the marketplace giving the best shot at securing a property without getting into a multiple bid situation.
Pricing continues to be resilient with median values climbing 7% year over year to $1,120,000 for residential homes. The composition of sales remains exceptionally strong with the most premium offerings within any given community finding the greatest momentum. Said differently, consumers are not seeking diminished quality in return for discounted pricing. Rather, they are willing to pay peak values for product that otherwise meets their needs from a lifestyle and programming perspective.
53% of all sales in February were at or above $1,000,000 meeting the record set in 2022 and strongly outpacing last year. 2024’s most premium sales recorded in February including an $11,000,000 lakeview property in Incline Village and a $7,415,000 “cabin” in Martis Camp.
As seasonal rhythms go, February brings the end of planned vacations to Tahoe, giving way to more spontaneous visits based upon snow conditions. This more closely resembles the patterns of second homeowners for whom trips to Tahoe represent the better half of any given week. As such, purchasing activity becomes more focused. This sentiment was strongly reflected in expressions of interest immediately following the President’s Day holiday giving a sense that activity is more constrained by limited inventory than high interest rates or concerns of the economy or forthcoming election.
Current inventory stands at just over 200 residential listings. This number exceeds the options available at this time in each of the past two years but is woefully low relatively to current demand. Supply is likely to dwindle for the next 6 weeks while owners maximize winter use before determining whether to list for sale in the spring. Sellers who come to market ahead of winter’s end are rewarded by having few competing listings vying for the attention of active buyers.
Despite a slow beginning, this winter has been ideal for travelers with excellent skiing and generally clear roads. With the season’s largest storm upon us, optimal snow conditions are assured for the second half of winter.
As always, please contact me for more information about current market dynamics and/or to schedule a tour or listing consultation today.
-Matty