First half Lake Tahoe real estate market analysis
Special to the Tribune
We have seen a lot of different types of real estate market situations during the past two decades. But 2019 is providing us with some interesting statistics as we look back on the first half of the year.
Overall sales of houses, condos and freestanding condos in Incline Village and Crystal Bay are down about 20% compared to the first half of 2018. Whether this is due to the big winter and late-season snowstorms, the shortage of inventory or some other factor is yet to be determined.
Sales of houses have seen a bit of a comeback during the past six weeks compared to the first four-and-a-half months of the year. Also the inventory of houses for sale is up significantly with 113 single-family homes currently on the market. Ironically this is exactly the same number of houses that were for sale during the first week of July 2018.
In contrast the inventory level of freestanding condos is only around three months. There have already been 28 closed escrows this year along with six properties currently in escrow. But as of this writing there are only 16 PUDs listed for sale on the Incline Village MLS. As a result prices have continued a slow steady uptrend in this category especially for the more desirable low elevation properties.
The condominium inventory hovers around five months with a median asking price of $699,000. This statistic has nothing to do with sale prices — it simply gives us an idea of the level at which half of all properties are priced above or below. As we have seen the median for sale price rise over the past several years, the floor for the least expensive condos in town has come up significantly.
Our favorite bellwether the two bedroom, two bath McCloud condo has seen sale prices between $560,000 and $647,200 depending on the floor plan, location and upgrades. All but one sale was $600,000 or higher. With only one condo listed for sale in the entire complex prices will likely continue moving to the upside.
At present time there are 42 houses, condos and freestanding condos currently in escrow. With the economy still relatively strong in Northern California we anticipate summertime sales to be at or above historical norms.
Whether sales in 2019 catch up to the high totals of 2018 or remain a bit behind will depend on a number of factors. This includes having sufficient inventory, minimal impact from summertime fires and no negative economic shocks to the markets that provide the majority of buyers for Lake Tahoe real estate.
Don Kanare is the founder and Sabrina Belleci is the owner and broker of RE/MAX North Lake in Incline Village. You can follow their blog at http://www.InsideIncline.com.