A slow start to winter and focus on the holiday season slowed the pace of sales in December and resulted in a drop in transactions in January.  Demand remains high though, and the market has seen a continuation of rising property values across the board. Vacation homes and investment properties continue to be sought after by buyers seeking both personal retreats and income-generating opportunities through short-term rentals.

 
Limited inventory remains a challenge, driving competitive bidding and potentially leading to escalated prices. Overall, the Lake Tahoe real estate market maintains its allure as a premier destination for those seeking a mountain and water lifestyle.

The Economy:

Shelter prices contributed to higher-than-expected inflation for January, lowering the odds that the Fed will cut rates soon. 

Fed members continued spreading the message that they are hesitant to start cutting rates yet and want to see more data first.

Consumer spending fell more than expected in January, after making gains in December. Retail sales dropped 0.8%, more than the expected 0.3%.

Market News:

As mortgage rates rose last week, total applications fell 2.3%. Purchase applications dropped 3% for the week and 12% year over year.

In a recent survey, Gen Z and Millennials named YouTube as their top social media platform to search for homebuying info.

Fewer home sellers are taking price cuts in 2024 despite increasing competition. Both new and active listings are up year over year.

Many potential buyers are in a ready position (pre-approved and actively looking), but are also paying close attention to what is happening in the market. Lack of inventory and rising rates are still major deterrents, which while is disheartening, is not entirely surprising.  Its important to remember that rates are still considerably lower than the highs we saw in October 2023, and some ebb and flow is to be expected.  Experts still anticiapte rates to subside to the low 6% range by the end of the year.

As 2023 has come to an end, the real estate market in the Lake Tahoe, Reno, and Truckee region has experienced a dynamic and resilient performance. Last year we saw external factors like Silicon Valley Bank collapse and rising interest rates reduce sales in Tahoe. An incredible record breaking winter also shortened the summer selling season. However, the area's natural beauty, recreational opportunities, and proximity to major urban centers have continued to attract both primary and second-home buyers, contributing to a steady demand for properties. The scarcity of inventory has been a defining feature, placing upward pressure on home prices. Lakefront properties around Lake Tahoe have particularly seen robust appreciation, driven by their exclusivity and breathtaking views.

In Reno, the real estate market has reflected the city's growing economy and expanding job market. The region's appeal as a tech hub and its relative affordability compared to some neighboring metropolitan areas have attracted a diverse pool of buyers. Similarly, Truckee, nestled in the Sierra Nevada mountains, has maintained its allure for those seeking a serene mountain lifestyle. The demand for vacation homes and investment properties in Truckee has kept the market competitive, with a focus on well-designed and modern mountain residences. Overall, the year 2023 has witnessed a sustained interest from a diverse range of buyers.