Tahoe Mountain Report
In-Depth Market Reports for the Lake Tahoe-Truckee Region
Viewing the 2023 performance of real estate in the Tahoe Truckee region through a 12-month lens, the narrative can be summarized as a stubborn market in which record few properties transacted while prices remained largely static.
This dynamic challenges many closely held assumptions of supply and demand whereby prices should diminish with extended days on market if sales are not prolific. Instead, sellers unmotivated by liquidity, chose to hold firm on price and opt out of continuing with sales efforts in circumstances when peak value was not offered. Buyers, in turn, took this opportunity to be exceptionally judicious about their selections, opting for purchases on only the most exceptional homes within any given neighborhood or price range rather than sniff out deals for product that is discounted but doesn’t otherwise match their needs.
When viewing the performance of the market over a 24-month lens, a period of stagnation from Fall, 2022 through early Summer, 2023 is apparent, after which the second half of 2023 showed energy toward a return to historical averages for transaction volume.
We head into 2024 with a sense of cautious optimism for a return to more ‘normal’ conditions. The year begins with seasonally adjusted balance of about 3 months’ supply. While election year precedence typically signals a year of paralysis, the growing anticipation of a rate cut seems to have demand primed for acceleration should mortgages return to a more tolerable level. Any such acceleration is likely to unlock greater inventory among those sellers that have waited on greater affordability for their next purchase which is likely to keep values balanced; perhaps even giving back some of the ample gains realized over the last several years.
With a fascinating year ahead, we look forward to keeping you updated of the market and the many of wonders of Tahoe.
