Real Estate: Trade down, hold on or cash out
Weekly real estate update
Statistics gathered from the Incline Village Multiple Listing Service on Nov. 11.
Houses Condos PUDs
For Sale 44 18 5
Under $1 million 3 15 3
Median Price For Sale $2,777,000 $632,500 $929,500
YTD Sales 2020 308 214 63
YTD Sales 2019 198 147 47
New Listings 9
In Escrow 13
Closed Escrow 13
Range in Escrow $475,000 - $15,500,000
These statistics are based on information from the Incline Village Board of Realtors or its MLS as of Nov. 11.
INCLINE VILLAGE, Nev. — It’s that time of year when property owners in Incline Village and Crystal Bay start to think about whether they want to continue using their place at Lake Tahoe or explore other options.
With our local real estate market in a steady uptrend it’s an excellent time to contemplate whether to trade up, trade down, hold on or cash out.
Owners of single-family homes that have appreciated by 10% or more in the past few months who have been thinking about downsizing into a condominium could find themselves enjoying the best of both worlds. This is especially true if you have a property with a lake view or a house in the Millcreek, Lakeview or Championship Golf Course neighborhoods.
With a relatively small supply and very good demand for these types of places you can likely sell your property rather easily during the winter months, purchase a condo or PUD in a desirable location and put a substantial amount of money in your pocket after completing both transactions. If you have another place to live, this also gives you the opportunity to cash out while demand is high and wait for the right place to come on the market and be perched and ready with cash in hand to make a competitive offer.
The reason this opportunity exists is because condo prices for the most part have not appreciated as quickly as prices for a good percentage of single-family homes in Incline Village and Crystal Bay. Since coming out of the lockdown and stay at home orders, condo prices have risen but are still behind the rate of homes.
As of this writing, you can still find condos in highly desirable locations with asking prices that are under $800,000. Consequently, owners of single-family homes find themselves in a rare position where they can sell their property which has appreciated significantly during the pandemic and trade down with favorable economic results.
With the condo inventory hovering around 18 units for sale during this time of year, there is also the opportunity for condo owners to consider selling in the winter time and trade up to a larger property before they have to compete with the usual spring and summer crowds. While you will normally have to come out of pocket a few dollars to make a trade up purchase, not having to compete with throngs of buyers in the summertime provides you with a better opportunity to get your offer accepted without having to pay over asking or come up with all-cash.
Inventory for single family homes is down 53% and condo inventory is down 62% from this time last year. Sales numbers are up year to date with single family home sales rising by 36% at 198 homes sales in 2019 to 308 in 2020 so far and condos rising by 32% with 147 condo sales year to date in 2019 and 214 year to date in 2020.
Some property owners will make the decision to simply hold on and enjoy their house, condo or freestanding condo for the next few years. With land regulations, stay at home orders, and economic shutdowns, it appears that properties in all classes in our market will continue to appreciate in the foreseeable future at a steady rate. Considering that Incline Village and Crystal Bay provide a fabulous quality of life along with superb recreational amenities, holding onto your property and living the dream on the Nevada side of North Lake Tahoe is a darn good alternative.
For some folks the nice levels of appreciation we have seen since the end of 2019 provide the ideal time to cash out. With low inventory levels, winter 2020 and 2021 could be the right time to sell your property and ride off into the sunset for warmer, less snowy pastures. Property owners at Lake Tahoe have some interesting things to contemplate and a wide variety of options to consider in a real estate market that offers opportunities for everyone.
Sabrina Belleci is the owner / broker of RE/MAX North Lake.
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