The cornfields, Ted! The cornfields!
Soft landing? Hard landing? Like Ted Striker in the classic 1980 comedy, “Airplane!”, the Federal Reserve is trying to bring the economy, and with it the housing market, in for a soft landing after the wild ride of ’20-’21 sparked historic inflation. The jury is still out on whether this story will end like “Airplane!”–the plane safely down despite stripped landing gear–but let’s all remember there is nothing wrong with coming back to earth.
Sellers: it’s not too late! Although we’ve lost altitude from the giddy highs of early 2022, the median single family home price in Tahoe-Truckee is still 20% higher than just 24 months ago. And if we compare today to Q3 2019, pre-pandemic, our homes are worth around 50% more than they were then.
Most buyers are struggling with the tough hit of higher interest rates, but the good news is that you have more to choose from than a year ago. Inventory numbers are slowly but surely gaining altitude, and we expect this trend to continue with the added bonus that prices are coming down.
It won’t surprise you to see that the market in homes under $1 million made a hard landing in 2020-2021, but what may not have been as obvious is that the only single family home market sector where unit sales increased that year was Truckee homes between $1mill and $1.499mill. In 2022, all price ranges are seeing decreased unit sales.
Need some comic relief after thinking about the economy? The landing scene from “Airplane!” will surely lighten things up. (But don’t call me Shirley!)