Real Estate: 3rd quarter market update
Weekly real estate update
Statistics gathered from the Incline Village Multiple Listing Service on Oct. 4.
Houses Condos PUDs
For Sale 58 22 11
Under $1 million 5 18 7
Median Price For Sale $2,880,000 $679,000 $929,500
YTD Sales 2020 192 182 62
YTD Sales 2019 129 131 45
New Listings 17
In Escrow 17
Closed Escrow 25
Range in Escrow $389,000 - $3,850,000
These statistics are based on information from the Incline Village Board of Realtors or its MLS as of Oct. 4.
There are so many things about 2020 that have been extraordinary and the Incline Village real estate market is one of them.
After starting out the year at a modest pace and then seeing the market freeze up in late March, sales have really rocketed the past six months. The third quarter alone was astonishing with nearly 270 properties closing escrow during the past three months. (Please note: this article is about sales through Sept. 30, but the stats chart is based on data through Oct. 4, hence the slight difference in total year to date sales).
To put things in perspective, during the first three quarters of 2020 there have been a total of 426 properties changing hands to new owners compared with 296 for the exact same timeframe last year. Sales of all property types and all price ranges continue to move along at a solid pace. Even the smoke from the fires in California the past six weeks has not deterred many buyers from purchasing properties at Lake Tahoe.
The single-family homes selling in 2020 In Incline Village and Crystal Bay have ranged from $625,000 all the way up to $27.5 million for a two-parcel estate on Lakeshore Blvd. Super luxury buyers have led the way with 13 properties selling in excess of $5 million this year. There have been 40 houses with sale prices between $2 million and $5 million in just the third quarter alone.
Of the 134 single-family homes that closed escrow during the third quarter 55 of them had selling prices in excess of $2 million. That is a disproportionately large number relative to historical patterns. What this tells us is that the most affluent among us are voting with their dollars and the Nevada side of North Lake Tahoe is getting a lot of positive votes.
A significant percentage of buyers this year are relocating permanently from urban areas to the Lake Tahoe basin. Hopefully, this will have a positive impact over the long term for the local economy. Full-time residents generally feel a greater sense of responsibility and pride of ownership than part-time visitors and tourists. Maybe we will see some entrepreneurship springing forth from the new arrivals that will have positive impacts on both the environment and the economy.
With inventory levels still extraordinarily low it appears that there will be upward pressure on prices in the foreseeable future. Even if the inventory were to double overnight it would not be sufficient to satisfy demand during the coming year.
Without any rain or snow in sight, we anticipate a steady stream of buyers will make their way to Lake Tahoe this autumn. While there have been innumerable negative consequences from the coronavirus pandemic, one bright spot in 2020 has been the Lake Tahoe real estate market.
Don Kanare is the founder and Sabrina Belleci is the owner / broker of RE/MAX North Lake.
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