Incline Village real estate: Strong first quarter for home sales in 2016
Special to the Sun-Bonanza
Weekly real estate update
Statistics gathered from the Incline Village MLS on 4/3/16
Houses Condos PUDs
For Sale 104 70 20
Under $1 million 23 63 10
Median Price For Sale $1,700,000 $469,000 $965,000
YTD Sales 2015 32 33 8
YTD Sales 2014 24 28 7
New Listings 13
In Escrow 6
Closed Escrow 9
Range in Escrow $395,000 - $1,200,000
INCLINE VILLAGE, Nev. — It has been a very good first quarter for real estate sales on the Nevada side of North Lake Tahoe. There have been a total of 73 closed escrows during the first 3 months of 2016, compared with 59 sales during the same time frame one year ago. This amounts to approximately a 24% increase in unit sales which bodes well for the upcoming busy summer season.
Inventory levels are quite low by historical standards, with just 194 houses, condos and freestanding condos currently listed for sale on the Incline Village MLS. Normally, one would consider a relative lack of supply to be an inhibitor for unit sales increases, but that has not been the case in 2016. As new listings come on the market, buyers are moving quickly to write offers on reasonably priced properties in good locations.
Real estate sales are a cornerstone of the local economy in Incline Village and Crystal Bay. When properties are selling at a brisk pace, it has a direct positive impact on a wide variety of service providers.
Beneficiaries include title companies, lenders, home inspectors, handyman types, contractors, interior designers, furniture stores and a host of others. Money spent locally gets recycled several times within our community, and secondary beneficiaries such as restaurants and retail stores witness an uptick in their revenues.
While we are seeing sales activity in virtually every category, the only sector sitting on the sidelines at the moment are lakefront properties. For example, 1131 Lakeshore Blvd. closed escrow in early January, but that property went under contract in October 2015. Typically we see more sales of lakefront properties from late spring to autumn, so it is not unusual for this market sector to be dormant in the depths of winter.
We anticipate that prices of low elevation condos will continue their steady march upward in 2016. With less than a 4-month supply of condos currently listed for sale on the Incline Village MLS, demand will outstrip supply in the foreseeable future.
There will be a significant number of new condo listings in the next few months. However, at the current rate of sales it appears likely that it will be a seller’s market for condo owners this year.
It’s a slightly different story for single-family homes where the inventory of properties for sale has fluctuated between an 8- and 15-month supply during the past 12 months.
Since Incline Village and Crystal Bay are characterized by custom homes each sale is unique and dependent upon the particular location and attributes of any specific property. Of the 32 houses that have closed escrow in 2016, a total of 15 had some type of lake view.
This is a higher percentage than normal and it appears that lake view properties could be disproportionately in demand this year. Sellers of lake view homes will have a competitive advantage and should benefit from this market situation that skews pricing in their favor.
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.