Lake Tahoe Real Estate Q1 2024 Market Report

Solid Q1 Performance Foreshadows What Lies Ahead for Tahoe Real Estate Sales 

The N. Lake Tahoe, CA real estate market enjoyed a great first quarter with year over year dollar volume up 21%, the number of single-family homes sales was up 28%, and the median home price up 16%. Due to limited inventory, the volume of homes sales remains below the 10-year average, but we are above 2023 volume, and on a more positive trajectory.

Historically, strong Q1 results set the tone for a productive year of Tahoe real estate sales. We anticipate that as more homes come on the market that we will achieve a relatively balanced market with supply and demand in equilibrium. Modest price gains are forecasted throughout the year, as we do not anticipate an oversupply of inventory, especially in sought after neighborhoods and desirable market segments.  

Lake Tahoe Real Estate Market Report Q1 2024 Highlights

• Total dollar volume Up 21%
• Number of homes sold Up 28%
• Median home price Up 16% to $1,325,000
• High Sale: Martis Camp estate at $7,415,000
• First Tahoe lakefront sale of the year at $7,300,000
• Demand for Tahoe luxury homes remains strong

Selling Season is Rapidly Approaching

Buyers are excited for fresh new inventory to hit the market and with the summer selling season rapidly approaching, we should see some great properties listed for sale within the coming weeks and months. If mortgage interest rates continue to fall, and we see an uptick in seasonal housing inventory, this should prove to be a strong year for Lake Tahoe home sales.  

Luxury real estate listings with waterfront amenities, views, and modern finishes are selling well. With limited inventory in the Tahoe real estate market, now is a great time to consider selling your property as buyers are looking for good quality homes.

Year over Year Market Conditions and Value Trends

 

Lake Tahoe Real Estate Year Q1 2024 Market Report Sales Chart

Lake Tahoe Real Estate Q1 2024 Market Report Sales Volume Chart

*North Lake Tahoe, CA and Truckee Single-Family Home sales including lakefronts. Data is taken from the Tahoe-Sierra Board of Realtors, MLS Areas 1-9.

Absorption Rate: 2.3 Months of Inventory = Seller’s Market

The term absorption rate refers to a metric used in a specific real estate market to evaluate the rate at which available homes are sold during a given period of time. Here are the statistics used to determine the absorption rate for the North Lake Tahoe, CA and Truckee real estate market.

Absorption Rate (single-family homes)

• 343 Sales in the Last 6 Months
• 57 Sales per Month
• 1.9 Sales Per Day
• 131 Current Active Listings
• 131 Listings / 57 Sales Per Month = 2.3 Months of Inventory = Seller’s Market
  • 1 to 3 Month Supply of Inventory = Seller’s Market
  • 4- 6 Months of Inventory = Balanced Market
  • 6+ Months of Inventory = Buyer’s Market

With only 2.3 months of inventory (single-family homes for sale), there are very few active listings in any given neighborhood, creating an advantage for sellers. Savvy buyers will see this data and take advantage of the shifting market conditions and make purchase decisions prior to a continuation of increased demand and limited inventory. If you see a home that you love, buy it now as prices will likely increase throughout the year. Although inventory will seasonally adjust upwards, so will demand, making now a great time to buy.

Pending Home Sales Provide Market Insight 

Pending sale activity shows transaction volume up 41% over February closings with the average price softening. Prolonged periods of limited inventory are having an effect on market statistics. Currently, there are 48 pending single-family homes in escrow with an average list price of $1,626,687 and a median price of $1,190,000. Out of the 48 pending sales, 63% are priced over $1M with 5 homes above $3M, and 3 listing above $5M. The average marketing time for the pending sales in at 62 days.

2024 Lake Tahoe Real Estate Market Predictions 

The Lake Tahoe real estate market is positioned to have a good year in 2024 as buyer activity is anticipated to increase as mortgage interest rates fall. Housing inventory (listings) is expected to remain low, so it would seem that if demand rises and the number of listings remains low, we will see price increases throughout the year. Inversely, if buyer activity remains low and inventory is constrained, the market could be flat in 2024.

• As mortgage interest rates come down, buyer demand will increase
  • rates are expected to come down throughout the year
  • the sweet spot for strong buyer activity is between 5.75% and 6.25%
• If inflation continues to fall the market will have a positive response
  • keep an eye on the Federal Reserve inflation data
• Avoiding a recession will boost buyer confidence
• A higher number of buyers in the market will put upwards pressure on pricing
  • bidding wars might return, especially at lower price points
• Strength in the stock market will bring more cash buyers to the market
• Limited housing inventory is expected 
  • Sellers have lots of equity and will only sell when timing is right
• Demand for quality homes in good neighborhoods will likely increase

Lake Tahoe Real Estate Market Report Archive

View All Tahoe Real Estate Market Reports
Q1 2023 Real Estate Market Report
Q1 2022 Real Estate Market Report 

Contact Lake Tahoe Realtor, Dave Westall

As the premier Tahoe Realtor, I’m here to provide insight and help you achieve your real estate goals. Let’s schedule a meeting to chat and discuss how I can be of assistance: Schedule Consultation

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