Happy New Year!
As we turn the page from 2023 and set our sights on the opportunities of 2024, it's a fitting moment to reflect on the past year's market dynamics for a clearer view ahead. In the short video below, you'll find my summary of my key takeaway from 2023.
Further down, I share a more detailed analysis and provide a link to access our comprehensive 2023 Market Reports for the diverse areas we proudly serve. Let's take a look at where we've been and where we might be headed.
Most importantly, as we reflect on 2023, a heartfelt THANK YOU goes out to our clients and friends for their unwavering support and trust in us with their significant real estate decisions.
In 2023, the Tahoe real estate market saw an 11% decrease in the number of residences sold compared to the previous year. During this period, a combination of local and economic factors, ranging from a surge in interest rates and record-breaking snowfall to the collapse of key regional banks in our feeder markets, combined to create a slowdown in our real estate transactions. However, this drop in total sales doesn't only reflect decreased buyer interest. Additionally, the decline in units sold reflects the low inventory available in 2023, a pattern persisting today with less than three months' worth of homes on the market.
Remarkably, amidst the broader national context where market adjustments have been more pronounced, most Tahoe and Truckee communities have weathered the changes with resilience. Average sales prices have only nudged a modest 2-4% lower than the previous year, and certain areas have even witnessed up to a 7% upswing.
It's clear that homes which are well-cared-for, modernized, or new and sensibly priced, not only retain their allure but continue to command a swift sale, often within 30 days. Furthermore, some properties have recently received multiple offers.
Now that the holidays are behind us, economic winds are shifting, and signs are pointing towards a potential decline in interest rates, we have every reason to believe that the Tahoe-Truckee real estate market is on the cusp of an upswing.
Please click the Market Report link below to view the data we’ve compiled for 2023. There’s a lot to digest in these reports. I hope you find them helpful and interesting.
Looking ahead, there a few key themes to keep in mind as you plan to buy or sell:
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Buyers have not gone away. They are reengaging with enthusiasm.
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Our biggest challenge is the limited inventory.
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Interest rates are expected to continue declining.
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Sellers will become less motivated as the market picks up.
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Prices are holding firm and expect to increase in the second half of 2024.
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The basics of Tahoe have not changed. It is the number one vacation destination for our feeder markets in Norther California.
Our team is poised and excited for a stronger market in 2024, and we are here to help you take advantage of it.
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