In addition to our ski season being extended, Truckee was named one of America’s most beautiful mountain towns. I can’t argue with that!
TRUCKEE, Calif. – The rich American history accompanied by picturesque mountain views, a flowing river, and endless activities, Truckee is a haven for both locals and tourists who want to fully experience the mountain lifestyle.
What do these reports mean and how will they impact the upcoming summer season?
As the demand driven by the pandemic has eased, we’re seeing a return to sound economic decision-making and fundamentals. Our market peaked in the second quarter of 2021, gradually easing as all conceivable inventory was snapped up. We continue to experience historically low inventory (over 50% less than normal for this time of year). Buyers have not gone away; they are now more thoughtful and cautious with their purchasing decisions than what we experienced in 2020 and early 2021. This more subjective approach to real estate is resulting in more days-on-market.
The heavy snowstorms in the first quarter limited access to many areas making it challenging to preview homes. In addition, rising interest rates contributed to a slight softening in average home prices in some neighborhoods of Tahoe, Truckee and Incline Village. The reports show that most areas of Tahoe experienced a drop in the number of homes sold by 40-50%, which is the result of the conditions mentioned above. Most importantly, the lack of inventory directly correlates to the reduced volume of sales in Q1.
While some neighborhoods have seen as much as a 20% reduction in the average sales price, others have seen as much as a 10% increase. For example, Truckee neighborhoods saw a 20% drop in average sales when comparing Q1-2023 to Q1-2022. By contrast, East Shore saw a 10% increase. In summary, many of these numbers are impacted by the volume of sales and the fact that the there were more lower-priced homes sold in Q1 this year than last year.
As expected, we are off the peak of 1Q22, but it’s increasingly likely that the gains homeowners saw during Covid will be retained as we move into a more favorable transaction season. Our summer season is an important and telling one. With the pent-up demand and a return of more inventory, I anticipate a busy summer with an uptick in transaction volume. I will keep you updated as we see how buyers respond to more inventory that’s on its way.
To fully understand the true meaning of the Q1 numbers, we must compare apples to apples. The best way to do this is to contact me for a true analysis of your property comparing homes that are relevant to the size and location of your property.
Click below for the full Q1 Market Report.
705 John McKinney | $4,079,000
Congratulations to our buyers! We wish them all the happiness these beautiful walls can hold!
As the area’s top-producing agents, you can count on Overall & Hamilton Group to be a responsive and reliable partner. We offer creative ideas, ethical standards and connections to the world’s most influential agents.
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As the area’s top-producing agents, you can count on Breck Overall, Jeff Hamilton and their team to be a responsive and reliable partner. They offer creative ideas, ethical standards and connections to the world’s most influential agents.