Real Estate Trends Kicking Off 2023

Welcome to 2023! Real estate professionals are strategizing about what’s now, what’s next, and what you care about. Here are highlights from this past year that impact your Tahoe and Truckee real estate markets.

1. Listings are limited.
   Winter consolidates the number of listings in our region. Demand remains high due to balance in our local supply of inventory. In order to move quickly as a buyer, understanding your financing and the local market is imperative to make quick decisions when the correct homes is available. 
2. Buyers are aggressive.
   Though not as aggressive as in summer, houses that are priced with the market will continue to sell quickly as buyers are ready. Pre-approval applications have increased dramatically over the last month as buyers prepare to make offers in spring with the hope of more inventory. 
3. Sellers are in the position to remain firm on listing price.
   Due to both low inventory and the resort destination appeal of the Tahoe and Truckee areas, sellers are in the position to remain firm on listing price. Homes priced adequately in todays market will sell and with have multiple buyers touring and writing offers. 
4. Interest rates.
   We will continue to see elevated interest rates in 2023 while interest rate hikes combat inflation. This isn’t a deal breaker for many buyers as the hope remains that refinancing will be an option when rates fall. Be prepared, we do not expect to see rates fall to the lows of 2021 or 2022. The prediction is that the market will continue to evolve in the next 12-18 months, with realtors playing an integral role in client success during a complicated time in real estate.
5. Demand is higher than supply. 
   Historically, balance in our Tahoe real estate market is a six month supply of inventory. Currently, if we had 200 listings for example, that would be about 6 weeks of inventory supply in the market. What does this mean? Our market will continue to hold high valuations and experience competitive buyers.
6. California home prices have increased.
   Yes, California home prices have continued to increase annually; however, the statewide recorded median home price has dropped compared to this time last year. This means, the rise of the median price of a home has significantly slowed down from the pace set in 2021- whether due to the interest rate increases for financing, or the settling of the mass shift in populations following the beginning of the pandemic.
7. Amenity rich neighborhoods are in high demand.
   Specifically, we’ve seen heightened interest in areas with amenities and with homes not needing renovation. Most buyers are stretching financial limits. With an extent of their resources put into the purchase price, homes needing renovation are less appealing either due to the cost, supply chain issues, or labor restraints of a remodel.
8. 2023 Predictions.
   Currently, all signs indicate a strong market progressing forward into 2023. With housing prices stabilized, and median prices still higher than this time last year, there is no indication that prices will drop going into 2023. While economists predict a potential recession we have yet to see this impact the local housing market.