Sellers Excited About the Market in 2020
After a solid year for real estate sales in 2019 sellers are looking forward to what the real estate market has in store during the coming year. With a greatly reduced inventory, buyers looking at properties on a regular basis and virtually no distressed properties to compete against, the Incline Village/Crystal Bay real estate market has a bias in favor of sellers.
There were 390 sales of houses, condos and free standing condos in Incline Village and Crystal Bay in 2019. This continues the strong pace of sales that we have seen since coming out of the recession in 2012. As many buyers sat on the sidelines during the shake out of the real estate market between 2008 and 2011, a lot of pent up demand was created. The first big wave of buyers returning with confidence came crashing in during 2012 and the momentum continues. Helping to push things along further is the sharp increase in real estate prices in California (along with very high income tax rates) which provides the majority of buyers in our local market.
With the inventory of properties for sale dropping to approximately 140 total units, the supply/demand equation continues to evolve in a positive direction for sellers. The historical long-term demand for quality properties at Lake Tahoe is in full swing and buyers have snapped up a lot of the inventory in some of the more popular locations.
Many property owners who were contemplating selling three or four years ago decided instead to rent their properties on long-term leases. As these leases expire some of these sellers will decide to test the waters and put their houses and condos back on the market. However, with rents remaining high for residential properties, some property owners will continue to lease out their places during 2020. So, there is not going to be a massive influx of rental properties coming on the market for sale, but there will be a slow steady stream of new houses and condos for buyers to consider.
Sellers are looking forward to 2020 with great anticipation as demand outstrips supply and prices continue to trend upward. Purchase agreement terms should be much more favorable as buyers compete for a smaller supply of properties than at almost any time in the past 15 years. The long-term desirability of Incline Village and Crystal Bay will continue to attract buyers. And the lower level of inventory will make sellers happier and more confident about putting their properties on the market this year.
Weekly Real Estate Update
Statistics gathered from the Incline Village MLS on 1/5/2020
Houses Condos PUDs
For Sale 84 45 15
Under $1 million 10 20 7
Median Price For Sale $1,995,000 $1,190,000 $1,146,200
Total Sales 2019 163 167 60
Total Sales 2018 181 190 65
New Listings 3
In Escrow 8
Closed Escrow 10
Range in Escrow $290,000 - $2,599,000
These statistics are based on information from the Incline Village Board of REALTORS® or its Multiple Listing Service as of January 5, 2020.