Tahoe Connect Newsletter - August Market Update

Happy August 1st!

August marks the halfway point for summer vacations and the shift from browsing real estate to making buying decisions. With the school year approaching, many prospective buyers start thinking about the upcoming ski season and next summer in Tahoe. This period kickstarts our true selling season, as non-owners ask themselves, “Should we keep renting or buy a vacation home in Tahoe?”

Coincidentally, this is also when sellers start to get a little impatient and more motivated to sell their properties. Late August and early September create the perfect meeting of minds between buyers and sellers, and this is when deals start to happen. We typically see our highest volume of transactions between Labor Day weekend and the middle of October.

Historically, we expect the market to pick up this time of year, but this year is different with a lot of uncertainty. It's an election year, interest rates are high, wildfires are burning in California, and fire insurance is challenging. Although buyers are still interested, many are on the sidelines. Our inventory has more than tripled since Q1, with over seven months of inventory now available, reducing buyer urgency.

Although it is difficult to predict what the next few months will look like in our market, there are some signs of hope. There have been 185 price reductions in our Tahoe Sierra MLS. Many of these are large price adjustments of $100,000 or more. These price reductions along with the most robust selection of homes to choose from that we have seen in years, have presented an incredible opportunity for buyers.

As a result, we are experiencing an uptick in pending sales. There have been 139 properties that have gone into contract since July 1st. This is a good sign that the “meeting of the minds between buyers and sellers” may continue, creating momentum in our market. I like to refer to the analogy of a buffalo herd…Once enough buffalos change direction, the herd will follow. In other words, an increase in sales and disappearing inventory of properties for sale should stabilize the market and keep property values up.

I will keep you informed as this selling season unfolds. Please feel free to reach out anytime if you have questions about your property or the market. If you’re considering purchasing a vacation property in Tahoe, now is a great time to explore the opportunities available. My team and I are here to provide you with the information and support you need to achieve your real estate goals.

I hope to see you here in Tahoe!

Best regards,

Breck