NORTH LAKE TAHOE | TRUCKEE MARKET UPDATE
A Note From Team Tahoe
What lies ahead as we move into 2024?
The powerful “COVID boom” real estate market is in the rearview mirror, and we have turned to well below-average activity across the region for the last 18 months. However, the inventory of homes for sale has not increased, and prices have only softened slightly.
Is the market activity going to change dramatically in 2024 compared to 2023? Probably not.
A strong stock market and declining interest rates help strengthen demand in our local market, which gives us reason to hope for increased activity in the coming year. The election, of course, will be a cardinal variable to consider.
Low inventory will continue to be a significant force on the market’s supply side. Inventory is still below half of what we typically see in the pre-COVID benchmark years at this time of year.
Multiple offers on properties have become uncommon, and bidding wars (5+ offers) have almost disappeared. Yet, price reductions only occur on 5% of weekly listings.
We expect below “normal” (by pre-COVID standards) activity, measured by the number of transactions, to continue in Q1 2024. Still, we are hopeful to see transactions climb toward regular averages as we get deeper into the year.
Sellers: remember, this is still a much better time to be a seller than in 2019 (which seemed like a very healthy market then!). You can expect a similar amount of time on the market but much higher sales prices!
Buyers: remember, this is the most balanced market we have seen in the last three years.
Although the Feds are still raising the rates, this will only happen until inflation is under control.
Please feel free to call or email us today to find out more. In today’s complex and dynamic market, expert analysis is critical.