A strong housing market reigned in 2022 in the Truckee and North Lake Tahoe region. With above average demand, limited inventory, and stabilized pricing, 2023 will see a strong real estate market.
In the first half of 2022, market trends matched the pace of 2021, with houses selling well over listing, experiencing multiple competitive offers, and listing on the market for mere days.
As inflation rose rapidly in the second half of 2022, sellers became noticeably cautious. With a lack of urgency to list and a strong sense of equity in existing properties, the local housing inventory dropped to the lowest supply seen in the past decade. Concurrently, the financial strength of buyers lessened as interest rates rose. Buyers qualified for less financing, secured higher mortgage rates, and pulled back from potential real estate investments.
Despite the dramatic shift in the market mid 2022, sales volume exceeded $2B for the third time in Truckee and North Lake Tahoe’s real estate market history. The median home price rose 6% to $1,075,000 – the highest achieved in our region.
Amenity rich communities have felt very little to no impact on values. Home sales reached over $41M for a Tahoe lakefront, and 32 homes sold in Martis Camp with an average sales price of $8.5M – an increase of 19% from 2021.
Currently, all signs indicate a strong market in 2023. The value of an investment in Truckee and North Lake Tahoe remains desirable. The demand for the idyllic, mountain lifestyle will continue to strengthen and hold an already desirable region in California.