Matty’s Minute: A May 2024 Market Update
Rally 4 Rocker 2024- Image by: Tucker Neuhaus
Entering the second quarter of 2024, The Tahoe-Truckee real estate market is showing signs of recovery. After a slowdown in transactions from mid-2022 to 2023, there's a rise in listings and a return of sales activity closer to historical levels.
Year to date, residential transactions stand just over a third stronger than the same period in 2023 and a neat 33% below the historic average.
In April 2023 economic headwinds in the form of surging inflation and interest rates coalesced with a repressive winter to deliver the quietest month for transactions since the Great Financial Crisis. To meaningfully outperform this period is the ultimate participation trophy but demonstrates a sense of normalcy returning to the market.
The absence of transaction velocity was offset by persistently low supply sufficient to keep prices from falling meaningfully. Correspondingly, supply has ticked up by the same 33% over this time last year keeping the market in balance.
This remarkable symmetry is likely to continue heading into the busier second half of the year. A sense that home sellers are done waiting for interest rates to drop before coming to market; whether for the possibility of higher sale price or a better opportunity on their next purchase; is an early indicator that supply is on the verge of a meaningful upswing. The period from the end of ski season through Memorial Day often delivers the majority of new listings supplying the local marketplace for the busy summer season.
By the end of 2024, we may look back at the remarkable resilience shown by the Tahoe-Truckee market. Despite facing economic challenges with high interest rates, inflation, and regional headwinds such as short-term rental restrictions, the enduring desire to own property in this scenic region has helped keep the market stable.
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