Residential Properties: Single Family Homes and Condominiums
Activity from January to May 2024
Residential Sales Summary 2024
Total Residential Sales:
Summer is here! With the gorgeous weather, the Tahoe/Truckee real estate market is gearing up for the busy season.
Looking back, closed transactions remain below long-term averages. In May, there were 72 sales, which is 80% of the five-year average and 75% of the ten-year average for the month. Year-to-date sales are at 80% of the five-year average and 77% of the ten-year average.
The first four months of the year have been characterized by low supply and tempered demand. The good news is that underlying activity feels encouraging. Supply is increasing both seasonally and compared to last year, and demand is looking strong. While we don’t anticipate a record-breaking year, it seems like 2024 will be busier than 2023 and closer to historical norms in terms of transaction numbers.
Median and Average Sales Prices:
- Overall Market: The median residential sales price is $1.15 million, with an average of $1.471 million.
- Single Family Homes: The median price is $1.3 million, and the average is $1.69 million.
- Condos: The median price is $665k, and the average is $960k.
Prices are still significantly higher than pre-COVID levels. For Q1, the median sales price for single family homes is up 82% compared to 2019 (from $715k to $1.3m), and for condos, it’s up 49% (from $437k to $650k).
Active Residential Inventory
Active Listings: Inventory is climbing from winter lows to summer highs, following normal seasonal patterns. There are currently 400 residences on the market, up from around 275 at this time last year. However, in 2019, the number was in the mid-500s, so there’s still some way to go to reach pre-COVID norms.
Current Pending Sales: The number of pending sales is at 112, up from 66 last month. About 86 residences went into contract in May.
Current inventory represents about 4.65 months of supply relative to May activity. Demand has been solid in early June, so we anticipate this number leveling out between 3 to 4 months of supply through most of the summer.
Sales by Price Range
Sales Under $500,000: Through May, there were 23 residential sales under $500k, representing 5% of total sales. In 2023, 6% of sales were in this range.
Mid-Range Market Sales ($500,000 to $999,999): 167 residences sold in this range, representing 38% of total sales. In 2023, 40% of sales were in this price range.
High-End Home Sales ($1,000,000 to $1,999,999): 173 residences sold in this range, representing 39% of total sales. In 2023, 37% of sales were in this range.
Luxury Home Sales (Over $2 Million): 81 residences have sold over $2 million, representing 18% of total sales, including 10 sales over $5 million. In 2023, 18% of sales were in this range.
Market Outlook
The real estate market has been relatively slow for nearly two years since the COVID boom. However, the inventory of homes for sale has not built up, and prices remain substantially higher than pre-COVID levels. So far this year, supply has been stronger than last year but still below average compared to ten-year trends.
Underlying activity is picking up, supported by a strong stock market and steady interest rates. This gives us hope for increased activity in the summer season. The upcoming election will be an interesting variable.
Multiple offer situations are making a comeback, particularly on homes priced under $1.5 million. Over the last couple of months, some homes priced under $1 million have seen 2-4 offers, with as many as 8 offers. New listings in the $1-2 million price range have drawn 2 to 4 offers. While true bidding wars (5+ offers) have been rare, they have occurred on very special homes recently.
Though we expect more supply this year than in 2022 and 2023, low inventory will continue to impact the market.
We anticipate below-normal activity (by pre-COVID standards) in 2024, measured by the number of transactions. However, we are hopeful to see transactions climb closer to normal averages as the year progresses.
For Sellers: This is still a much better time to sell than it was in 2019, with shorter time on market and much higher sales prices.
For Buyers: This is the most balanced market we’ve seen in the last three years. You now have the ability to negotiate price, inspect properties, have normal contingencies, negotiate repairs, and benefit from steady interest rates.
Contact Me Today to explore opportunities in the North Lake Tahoe – Truckee market.
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