Sizzling Summer Sales
The Incline Village / Crystal Bay real estate market has been hot this summer with 67 properties currently in escrow as of this writing. The property mix consists of 25 condos, 10 freestanding condos and 32 single-family homes. Sales activity is strong across all price ranges as the summer of 2018 continues to hum along at a solid pace. Total Year to Date sales in units are slightly ahead of 2017, which overall was a banner year on the Nevada side of North Lake Tahoe.
Our market is characterized by mostly discretionary purchases of 2nd, 3rd and 10th homes resulting in a rather random distribution of sales activity within any price range at any given time. Looking at historical data we can tell over the course of the year that there will be occasional flurries of activity along with random periods of drought in any particular price range or subdivision.
This is not unusual for a vacation resort market such as Lake Tahoe. We don't have the typical residential cycle of families packing up and moving for a job or to a new school in the late spring and early summer. While summertime tends to bring an increase in sales activity, it is completely unpredictable as to which price ranges or locations will be highest in demand in any given year.
Heading into the last 10 days of August, the 32 houses in escrow on the Incline Village MLS span the gamut from $649,900 up to just under $6 million. Only 6 of these homes had asking prices under $1 million. 17 of these properties have asking prices between $1 million and $2 million which demonstrates a nice level of sales activity in what is normally considered the “sweet spot” for single family homes in Incline Village and Crystal Bay.
Almost every subdivision is represented along with a nice diversity of locations, views and architectural styles. Of particular note is that no particular subdivision has more than 4 properties in escrow. The Mill Creek and Lower Tyner areas lead with 4 places each followed by several others with 3 apiece. When we see this type of property sales distribution, it reinforces that we are in a healthy market overall.
How much longer prices will continue to trend upward is anyone’s guess. As long as the vibrant economy in California continues to bring lots of visitors and buyers to Lake Tahoe the real estate market should remain strong. With large numbers of visitors enjoying the beautiful summer weather and spectacular scenery, we will likely continue to see a solid pace of showing activity in the foreseeable future. The most motivated sellers will generally either make a price reduction or offer some type of incentive in an effort to get their property sold before the arrival of ski season. And with 16 price reductions in the past week there are a number of properties that look more appealing.
Buyers should not hesitate to write an offer if they find a property that they like. While we continue to see a decent number of new listings each week, that will probably taper off as we move into September. Multiple offer situations are sometimes the case when a good value hits the market. 2018 has provided us with many reminders of the old adage “if you snooze you lost."
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