And we’re off!
As we welcome the unofficial start of summer in Tahoe, the Truckee – North Lake Tahoe real estate market has continued its dynamic trajectory, marked by steady demand and minimal appreciation. May 2024 has proven to be a month of significant activity and positive growth, underscoring the region’s enduring appeal among discerning buyers. Let’s delve into the specifics that highlight the trends and opportunities in our prestigious communities.
Market Overview
May concluded with an impressive total of 71 sales, marking a substantial 13% increase from April and nearly identical to the previous year’s performance, which saw 68 sales. This surge in transactions signifies robust buyer interest and market fluidity, as well as the resilience of our local market against broader economic fluctuations.
Month-over-Month Total Sales Transactions
Price Trends
The median sold price for May ascended to $1,185,000, reflecting a 2.6% increase from April’s figures and a notable 6.5% rise from last year’s median of $1,112,500. This upward trend in pricing underscores the high demand and the intrinsic value found within our real estate market. The consistent appreciation in home values is a testament to the quality and desirability of properties in the Truckee – North Lake Tahoe area.
Month-over-Month Total Sales Transactions
Sales and Inventory Dynamics
Analyzing the sold-to-list price ratios, homes in May traded at approximately 0.8% below asking price. This slight discount suggests a competitive market where buyers and sellers are negotiating effectively, yet it still indicates strong demand that keeps prices close to listed values.
The inventory of available homes has seen a significant increase, aligning with the seasonal rise we anticipate each spring. May recorded a 44% jump in inventory from the previous month and a 26% increase compared to the same period last year. This influx of new listings offers a broader selection for potential buyers, enhancing market dynamism and providing opportunities for those looking to invest in our exquisite mountain properties.
Months of Inventory
Market Pace
Speed of transactions has also been a noteworthy highlight this month. The median days on market dropped dramatically, down 39% from 23 days in April to just 14 days in May, maintaining parity with the previous month’s swift pace. This rapid turnover reflects the market’s efficiency and the high level of interest from buyers eager to secure their dream homes swiftly.
Median Days on Market
Luxury Segment
The luxury real estate segment had better month in May, with an noticeable uptick in homes closing over $2M and a record setting sale in Northstar with 2222 Silver Fox Court setting the record for the highest price ever sold in Northstar at $6,045,000 (all cash and 3.4% below asking). Here’s a price point break down of sales in April:
- 28 sales <$1M
- 43 sales >$1m
- 15 sales >$2m
- 2 sales >$5M
- 0 Sales >$10M
Martis Camp and Schaffer’s Mill both had an oddly quiet month in May, resulting in zero transactions for the month.
Lahontan reported one transaction with 8602 Lloyd Tevis closing $140K below asking down to $3,060,000.
Gray’s Crossing had spur of transactions in May, with 4 homes trading hands. Of interest, 3 out of the 4 homes all closed at asking with only 11159 Henness Road closing under asking (a whopping $260K, down to $3,025,000 after spending a cumulative 224 days on market).
Old Greenwood saw a single sale in the community with townhome 13139 Fairway Drive 6A closing an impressive $30K over asking to $1,280,000. The home spent 68 days on market but patience paid off for the Seller.
The Village at Northstar had another 3 sale in Northstar, all closing below asking. Of major note, 7413 Larkspur Lane in Village Walk closed a massive $395K below asking down to $2.3M, after spending a staggering 290 days on market).
Out in the Northstar community, there was much transacting with 4 homes closing in May. Aside from 2222 Silver Fox Court setting the record for the highest price ever sold in Northstar, my listing at 721 Conifer, after receiving 5 offers, closed full asking at $1,445,000. This sale allowed my clients to generate a substantial profit, after having only bought the home back in August of 2021 during the age of “pandemic pricing.”
Mountainside went quiet again with no sales reported. As a reminder, Mountainside represents the smallest of the major Truckee resort communities. Its size and desirability make for naturally low turnover.
Incline Village Market
The Incline Village real estate market in May 2024 has demonstrated remarkable resilience and growth, particularly in the luxury segment. The median sales price surged to an impressive $2,200,000, marking a significant 79.6% increase from April 2024 and an astounding 131.5% rise compared to May 2023. This upward trend underscores the region’s strong demand and the increasing value of high-end properties. Despite the higher price points, the market has remained dynamic with a 5.0% improvement in the list price received, now at 99.1%, indicating that sellers are achieving near-asking prices, reflecting the robust buyer interest and competitive bidding environment.
However, the number of closed sales experienced a slight decline, with 17 transactions in May, down 15.0% from both the previous month and the same period last year. The median days on market decreased dramatically by 55.0% from April 2024, now standing at 27 days, showcasing the quick pace at which properties are being snapped up. The active inventory also saw a notable increase of 43.4% from April, with 152 properties available, providing ample options for prospective buyers. Additionally, the months’ supply of inventory jumped by 68.7%, reaching 8.9 months, which suggests a healthier balance between supply and demand as we head into the peak summer buying season. This vibrant and competitive market highlights Incline Village as a premier destination for alpine real estate, with promising opportunities for both buyers and sellers.
The Outlook
As we approach the prime summer buying season, the outlook for the Truckee – North Lake Tahoe real estate market remains exceedingly positive. The steady increase in sales, coupled with rising prices and a substantial influx of new listings, positions our region as a premier location for destination homebuyers. The allure of the breathtaking natural scenery, combined with the lifestyle amenities that our communities offer, continues to draw affluent buyers from across the nation.
With the market’s current momentum and the excitement of summer on the horizon, we anticipate a bustling season filled with opportunities for both buyers and sellers. The Truckee – North Lake Tahoe area is not just a place to live but a destination to experience the mountain lifestyle, all the while investing in a physical asset that can be handed down through the generations. Here’s to a summer of success, growth, and unforgettable real estate journeys.
