Incline Village real estate: Lower, moderate-priced properties in demand
Special to the Sun-Bonanza
Weekly real estate update
Statistics gathered from the Incline Village MLS on 9/11/16
Houses Condos PUDs
For Sale 159 88 21
Under $1 million 43 75 11
Median Price For Sale $1,650,000 $510,000 $995,000
YTD Sales 2016 116 135 28
YTD Sales 2015 89 126 33
New Listings 12
In Escrow 14
Closed Escrow 18
Range in Escrow $300,000 - $3,495,000
It has been a very interesting year for the Incline Village real estate market. As of this writing 116 single-family homes have closed escrow and 89% of them sold for less than $2 million.
During the previous 4 years approximately 17% of the houses that sold had final sale prices greater than $2 million. What we have seen in 2016 is buyers focusing on lower to moderate priced properties. And this is true of both houses and condos.
Overall property sales are still tracking ahead of last year. We anticipate there will be around 400 sales of houses, condos and freestanding condos in 2016.
It was a very busy summer season for Incline Village real estate activity. With the beautiful weather continuing and relatively decent inventory levels, buyers still have good opportunities as we enter autumn.
There are currently 268 houses, condos and freestanding condos listed for sale on the Incline Village MLS. This equates to a roughly eight-month inventory which means we have a slight bias towards a seller’s market.
Condo prices for the most part have been slowly trending upward. However, we have seen greater price increases in McCloud and Third Creek than most other complexes. As we see the supply of lower-priced condos disappear buyers will have fewer bargains from which to choose.
The median price for condo sales this year is $415,000 vs. $385,000 at this time in 2015. The 23 sold units in McCloud have really helped to push up the median sale price. This is an extraordinarily large number of closed escrows in this complex and there are currently 3 McCloud condos in escrow.
It’s been a long time since 30 properties changed hands in McCloud in one year. But with the price for a 2 bedroom, 2 bath property having exceeded $500,000 for many of the sales, buyers want to jump on the train before it completely leaves station.
Houses priced under $800,000 continue to remain in strong demand. While there was not a lot of activity in this price range during the month of August, that was an anomaly.
We have already seen 36 properties close escrow under 800K and there are just 23 listed for sale on the MLS in mid-September. It is also becoming increasingly more difficult to find anything with a lake view priced under $1 million.
The good news for buyers is that prices for Incline Village real estate are still below the peak achieved during the real estate boom of the previous decade.
This is in contrast to several of the major metropolitan areas such as San Francisco, Sacramento and the San Jose/Peninsula metro region where many neighborhoods have exceeded their pre-recession highs. As a result, there is no problem with sticker shock for the vast majority of prospective buyers in our market.
Barring unforeseen circumstances it looks like real estate sales will continue at a healthy pace for the remainder of 2016. Mortgage interest rates remain near historic lows and the Northern California economy continues to hum along nicely.
These are 2 of the most important factors that drive purchases of real estate at Lake Tahoe. Sellers still have a good opportunity to strike a deal in autumn 2016 especially if their properties are priced attractively.
Don Kanare and Sabrina Belleci are the owners of RE/MAX North Lake. Read their blog and find weekly stats on their website at http://www.InsideIncline.com.