Incline Village real estate: Summer 2016 Lake Tahoe market analysis
Special to the Sun-Bonanza
Weekly Real Estate Update
Statistics gathered from the Incline Village MLS on 7/3/16
Houses Condos PUDs
For Sale 155 90 26
Under $1 million 35 79 14
Median Price For Sale $1,650,000 $510,000 $995,000
YTD Sales 2016 73 83 20
YTD Sales 2015 60 85 16
New Listings 28
In Escrow 11
Closed Escrow 10
Range in Escrow $299,000 - $4,200,000
Summer at Lake Tahoe is traditionally the busiest time of year, and real estate sales in Incline Village and Crystal Bay continue to move along at a strong, steady pace.
Overall sales of houses, condos and freestanding condos are slightly ahead of 2015 with moderately priced properties dominating the action.
The chart with tis column shows year to date sales, but delving deeper into the numbers will help us analyze the state of the market this year.
Of the 68 houses that have closed escrow on the Incline Village MLS only 8 had sale prices greater than $2 million. Just one lakefront property has sold this year and it was by far the highest price transaction at $25,250,000.
There have not been any closed sales between $3,350,000 and the aforementioned lakefront sale. Lower-priced homes are becoming scarcer as there are only 19 houses for sale with asking prices under $800,000.
We’ve seen 22 sales year to date in this price range which tells us that the floor for single-family home prices is continuing to move upward.
The median square footage for houses that have closed escrow is hovering around 2,700 feet. This is very close to the historical square footage over the past several years.
During the real estate boom in the previous decade the median square footage had crept up to nearly 3,000 square feet.
Many people realized after the recession that bigger is not always better, and it’s the interior quality, view, ease of access and location that are more important factors.
Condo sales are quite strong for the 2nd year in a row, and surprisingly one bedroom properties make up 20% of the deals so far this year. Generally, one bedroom condos comprise less than 10% of all of the sales in our community.
So far we’ve seen 17 of these smaller properties change hands to new owners versus 13 in all of 2015. It’s become trendy for older property owners to downsize and then rent a house or condo when friends and family members come to visit.
There’s no reason to maintain a big empty house and host guests a few times a year when the cost of a vacation rental is offset by the savings in mortgage payments, taxes, utilities, maintenance, etc.
The ever popular McCloud condo complex is once again the leader with 14 transactions year to date. A distant second with 7 closed escrows is Mountain Shadows.
While there was a shortage of properties for sale in this complex earlier in the year, we have seen an uptick in the inventory lately.
Coming in 3rd with 5 closed escrows is Coeur-du-Lac. Low elevation condos within a mile or so of the beach continue to remain in high demand. 59 of the 83 condos that have sold in 2016 fall into this category.
As of this writing there are a total of 73 properties in escrow. This is a rather high number for any particular time in Incline Village and Crystal Bay.
We anticipate that sales will continue at a strong pace during the summertime as long as there is sufficient inventory to meet the demand.
Most likely we will finish the year with somewhere between 360 and 400 total transactions, although that number could rise if we experience a greater than usual surge of activity this summer.
While we are not in a bubble by any stretch of the imagination, multiple offer situations are occurring on a weekly basis. We don’t anticipate frenzied bidding wars like in some parts of the country where demand greatly outstrips supply.
However, buyers and their agents need to monitor the market closely or they risk missing out on the best opportunities.
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.