Market Dynamics
Q3 2024 reflected strong activity across the luxury market in Tahoe Truckee in the $2M+ segment. Overall, luxury sales volume increased by 20% year-over-year, rising from $283M in Q3 2023 to $343M this quarter. The median sales price also saw a 4% boost, climbing to $3.1M. However, the market is experiencing longer transaction times, with the average days on market increasing by 23% compared to last year, from 61 to 75 days. This extended timeframe reflects more deliberate purchasing decisions in a luxury market influenced by broader economic uncertainty.
Pricing and Supply Trends
Notable communities such as Martis Camp and Lahontan saw considerable price strength. Martis Camp reported a median sales price of $7.7M, while Lahontan stood at $4.3M. In contrast, Schaffer’s Mill and Gray’s Crossing continued to offer slightly more accessible luxury, with median prices of $3.99M and $3.02M, respectively. Although these prices are on an upward trajectory, increasing supply in some areas has led to more competitive pricing strategies, particularly for homes sitting on the market longer than expected.
Lakefront and High-End Property Surge
Lakefront properties remained a key highlight, particularly on the West Shore, where the highest-priced sale reached $18.45M. This follows a trend of strong lakefront activity, driven by high-end buyers seeking premium locations. Notably, lakefront listings are commanding top dollar, with homes selling close to asking price, even as market times increase. However, the market below $10M appears to be stabilizing, with fewer ultra-luxury sales than in previous years, indicating a shift towards more balanced activity.
Market Segmentation and Predictions
While Q3 was a robust quarter, the overall market is expected to conclude 2024 with a slight decline in total sales volume compared to last year. The increasing days on market and cautious buyer behavior—fueled by factors like inflation and geopolitical tensions—suggest that this trend may persist in the short term. Despite these near-term headwinds, the outlook for 2025 is optimistic. We anticipate increased buyer activity, particularly as market conditions stabilize, leading to price growth in high-demand communities.
