Real estate: Inventory is historically low; landlords, tenants and eviction issues
Weekly real estate update
Statistics gathered from the Incline Village Multiple Listing Service on Aug. 30.
Houses Condos PUDs
For Sale 47 22 1
Under $1 million 1 15 1
Median Price For Sale $3,360,000 $775,000 $849,000
YTD Sales 2020 147 139 46
YTD Sales 2019 101 106 42
New Listings 14
In Escrow 27
Closed Escrow 22
Range in Escrow $528,000 - $44,000,000
These statistics are based on information from the Incline Village Board of Realtors or its MLS as of Aug. 30.
Inventory Update: We have seen a dramatic drop in the inventory of houses, condos and freestanding condos for sale on the Nevada side of North Lake Tahoe.
At the present time there are only 70 residential properties for sale in Incline Village and Crystal Bay. The historical norm is closer to having somewhere between 250 and 350 or so properties for sale during this time of year.
Considering the fact that there are well over 300 real estate agents practicing in our community that means there are approximately four agents for every listing. This is rather extraordinary especially when you consider that the inventory continues to decline week after week. The ability for brokers to hold “pocket listings” has been affected by new rules and regulations. As a result when properties hit the MLS there tends to be a flurry of activity rather quickly.
With approximately 8,500 residential properties in total in our community the number of properties currently for sale is less than 1%. Many of the buyers who are purchasing in 2020 are becoming permanent residents not vacation homeowners. This will result in an unusually high percentage of the properties being sold this year not coming back on the market for many years or even decades. The long-term consequences could potentially be a ratcheting down of the average historical inventory level in future years.
Landlord / Tenant Issues: The grace period granted to tenants from eviction for nonpayment of rent as a result of the coronavirus epidemic was just extended nationwide through December. This last-minute decision by the CDC has many landlords and property managers in a tizzy.
In many parts of the country Sept. 1 was the deadline date for tenants to pay rent or face possible eviction. This is a monumental problem all over the country as people who lost their jobs have also seen the $600 per week supplemental unemployment benefit run out.
There is a painful paradox ahead facing landlords with mortgages on their buildings and tenants unable to pay the rent. Evicting tenants only exacerbates the homeless problem and there might not be suitable tenants to replace the evicted parties as a result of the damaged economy. But landlords with mortgages will run out of cash someday if they don’t have rental income. Banks have granted forbearance on single family residential mortgages but that won’t last forever.
Exacerbating the homeless problem is not a solution but neither is bankrupting landlords and having mortgages defaulted upon. The latest ruling from the CDC using the pandemic to extend the stay on evictions is a band aid on a gunshot wound. Our leaders in government and the mortgage industry need to address this issue so that we don’t dig a deeper hole for ourselves.
Protecting Your Property: The fires raging throughout California that have been funneling smoke into the Lake Tahoe basin are a reminder that creating and maintaining defensible space is incumbent upon every property owner and Homeowners Association.
There are many things that a homeowner can do including removing branches and trees as needed, clearing pine needles off of roofs and decks along with raking them away from structures. Firewood should be stored in a safe place, not under a wood deck. Together we can make Tahoe a safer place for everyone.
Don Kanare is the founder and Sabrina Belleci is the owner / broker of RE/MAX North Lake.
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