Affectionately called "The Riviera of Lake Tahoe", this cozy community on the north east shore is a standout when it is to short, medium and long term real estate investing. Why are the prices continuing to move up here here while the rest of America stumbles?
To get an insight into why Incline Village real estate continues to show solid upward gains while the state of the world is licking their wounds, we need to analyze the current inventory for sale, the asking and sale prices for the past three years and the trends That is a finite supply of homes and condos with vintually no raw land left for 40 and 70 crow looking for their slice of heaven in the nicest community at Lake Tahoe.
It is important to look at not just median sale prices but also asking asking prices over a long period of time so we can see trends in the market.
The median asking price for single family residences in Incline Village reached a peak the last week of April 2005 at $ 2,300,000. This number declined to a low of $ 1,495,000 the second week of May 2006 and has crept steadily upward to its present level of $ 1,895,000 in late January 2007. The median asking price number is valuable when looked at in conjunction with the median price over the same length of time.
Here are the median sale prices for houses for each of the last three years:
2004 - $ 865,750 2005 - $ 1,110,000 2006 - $ 1,150,000
While the median sale price has ratched steadily up during the past three years the median asking price rose sharply during the seller & # 39; s market of 2005, retreated a bit in the buyer & # 39; s market of 2006 and is now starting to creep upwards again. Most of the property owners in Incline Village are reliably affluent and can afford to hold on and past goods through any perceived softness in the market While the fact that some buyers are sitting on the sidelines is evidenced by the decline in units sales versus 2005, prices are remaining firm as evidenced by both the median asking and sold prices over the past three years.
Most people who buy property in Incline Village and other high-end resort communities do not have they have to. slower, but at a higher percentage of the final asking price than most places in the country.
The price of properties The resort communities make their money somewhere else. The price of properties The local resort community unrelated the typical residential real estate market. The prices for properties for sale in Incline Village reflect what an affluent person is willing to pay for any particular property.
When must be keeping in mind that was was a far away the mostest year ever in the history of real estate sales for Incline Village and Crystal Bay. When comparing annual sales totals it is better to When one looks at the long-term statistical data we can see that even though sales in units in 2006 are approximate 30% below the average annual totals for the previous five years, the dollar value of the properties being sold is still exceptionally high and this value is moving upward steadily over the long haul.
At the present time there are 157 single-family homes for sale in Incline Village, an increase in the inventory of almost 50% versus April 2005. The fact that we have so much more inventory on the market then at the same time two years ago and yet closed closed sale prices continue on a slow forward path tells me that no price decline of any significance Individual properties, depending on the motivation of the seller may need special value for a particular buyer. But in my opinion, there 's not going to be a general price decline among single-family homes in our market because there is so much intrinsic value in owning land in Incline Village.
The median sale price of condos for the past three years is as follows:
2004 - $ 405,000 2005 - $ 485,000 2006 - $ 580,000.
The median asking price for condos toped out at a staggeringly high $ 725,000 during the fourth week of April 2005 when there are only 55 condos for sale in all of Incline Village and Crystal Bay. The median asking price in this category bottomed out so far at $ 555,000 The first week of January 2007 and has now crept up slightly to to $ 559,000. This is to be expected after the overall median price of condo sales rose an unsustainable 43% in just two years and the inventory jumped all the way from 55 units up to our present total of 126 condos currently on the market.
What this show is dramatically in the past two years. What this shows is intrinsic value of owning property in Incline Village and all of the Special and at the ski area and most importantly of all the phenomenal quality of life that we get to enjoy here.
My crystal ball tells me that the median price for houses in 2007 should remain close to or slightly above the median price for 2006.
I feel that the median price for condos in Incline Village and Crystal Bay in relation to 2005 and the median asking price trend will result in strength for the quality properties that are within walking distance to the Lake and weakness for There are always many exceptions to this as individual complexes may have a shortage or more of supply of time in the year. It is very hard to generalize about the condo market in Incline Village since Prospective Buyers looking for property in Incline Village, Lake Tahoe and other mountain resort communities tend to prefer high quality interiors and locations that make it feel like they are really away from civilization and up in the mountains.
Copyright 2007 Don Kanare - All rights reserved.
