July 2024 News from Soni's Corner - Reno | Tahoe

Hi dear Friends, Clients, and Colleagues,

The month of July has been gifting us with very warm temperatures, blue skies, and pristine boating waters. With it, the Tahoe and Reno region are booming with visitors taking advantage of all the outdoors has to offer. So slice that watermelon, have a seat, and let's dig in to what's the latest in this neck of the woods.

This market feels very active, yet also bringing with it more emotions maybe than in prior years. Buyers numbers are growing by the day as people come off the fence from waiting for rates to drop, yet Buyers do want to feel they are getting a good price in the same breath. Sellers are holding strong to their ask prices if not in massive urgency creating a bit of a "canyon" between Buyer and Seller in certain scenarios. This isn't always the case if a property is prepped really well prior to coming to market and is positioned very competitively from a pricing standpoint. Those in particular are moving quickly and at times with multiple offers. Deals are still being made with Seller credits back to Buyers for buying down interest rates, some Seller financing deals being made, and other ways to navigate this ever-changing tide. Overall temperature I'm reading: do not wait if you're still on the side lines. It is getting rather competitive, inventory slightly increasing, but buyers increasing more rapidly and expected to come on with the potential of end of year rate drops.

Below, you'll find our Micro-Market Reports offering a quick update on last quarter, along with a few key observations to keep in mind as you navigate the Tahoe real estate landscape. I've also included a full calendar of events as summer is THE time to get out and about with endless options this time of year!

As always, I love a good catch up and market breakdown if you ever want to reach out.

Cheers,

Soni

On 7/11 we not only had a free Slurpee, we had a nice drop in mortgage rates, because the monthly Consumer Price Index (CPI) came in with a lower inflation reading. The CPI measures consumer prices month to month and it came in at a surprisingly low .065% increase over the previous month, which was rounded up to .1%. The economists had expected a .2% increase, so this helped lower interest rates to a 5 month low. Many economists now feel the Federal Reserve has the data they need to finally start cutting the Fed Funds Rate in September.

The biggest surprise on the CPI report was the drop in shelter costs from the previous month. Shelter costs, as we all feel, is the largest monthly expense for most people, so if this component of CPI stays low, we will see overall inflation come down as well. This was a great monthly report resulting in some real hope for lower mortgage rates in the future. Please reach out if you would like to discuss this in more detail and review your personal options for a home purchase or refinance.

What do the Q2 real estate market stats tell us about today and tomorrow? Discerning buyers and sellers rely on the trusted guidance of our real estate advisors to expose beneficial client opportunities in this report. Please enjoy these MicroMarket Reports and let me know if you have any questions and/or want to discuss your property in particular.

There's a lot of data in these reports, and a lot to digest. Here are my top ten key takeaways from the sales data for Q2:

1: Increase in Residential Sales: 2024 has seen a 10% increase in residential sales year-over-year, indicating a potential shift in market sentiment.

2: Median Price Rise: The median price has risen by 7% to $1,100,000, marking the highest on record for this metric.

3: Average Price Decline: While the median price has increased, the average price has decreased by 4%.

4: Narrowed Price Gap: The gap between average and median prices has narrowed to 32%, the lowest since 2011, suggesting higher entry-level home prices and fewer ultra-high-end sales.

5: Stable Inventory: Inventory levels are higher than in recent years, but sellers are not cutting prices significantly without distress or external pressures.

6: Economic Headwinds: Interest rates, homeowners’ insurance, and inflation continue to pose challenges for the market.

7: Luxury Market Cooling: There has been a reduction in ultra-premium sales, indicating possible saturation or cooling off in the luxury segment.

8: High-End Sales Proportion: Sales above $1,000,000 make up 54% of year-to-date sales, matching the highest amount ever, but sales above $5,000,000 are at their lowest since 2020.

9: Increased Listings: The number of available listings is the highest in over four years, up 25% from last year and nearly double from 2022.

10: Seasonal Market Acceleration: Market activity is expected to accelerate over the next 3-4 months, with a projected year-end total of around 1,200 residential sales, absorbing most of the standing inventory and leading to balanced pricing.