Incline Village Real Estate
News Letter - April 2010
Don Kanare - Realtor
Your E-Pro Incline Village Real Estate Agent
If You Would Like to Receive This Newsletter Automatically Each Month,
Send Me An E-Mail. Your Information Will Never Be Divulged to Anyone.
This Months Articles:
Incline Village Real Estate Sales Up Dramatically in 2010
Making the Best Use of Passive Solar at Tahoe
Sell, Rent or Move - In? What's an Absentee Owner's Best Choice
Click Here to See All of My Listings and Virtual Tours
460 Teresa Ct - $670,000 - Lakeview House - 4BR, 2.5BA, 1992 sq. ft.
Wonderful location just 3 blocks from Hwy 28 in a quiet neighborhood. Very good views of Lake Tahoe and the surrounding mountains. Master suite on entry level along with living room, kitchen, dining room and 2 decks!
Click Here to See the Virtual Tour
For Daily Updates on Incline Village Real Estate visit my web site at: www.InsideIncline.com
INCLINE VILLAGE PROPERTY SALES
SHOW BIG IMPROVEMENT IN 2010
If you were sitting on the sidelines during last year’s stock market rally, you are going to get a second chance, but it won’t be on Wall Street. The Incline Village real estate market is showing signs of bottoming out and the latest sales statistics show that activity is way ahead of the pace in 2009. So if you missed out on making big returns in the stock market last year, 2010 just might be your best opportunity to scoop up a good value on the north shore of Lake Tahoe.
The numbers for first quarter 2010 sales are very dramatic when compared to one year ago. Here is a chart showing the year to date sales as of March 24, 2010 compared with the same time frame in 2009.
Houses Condos Free Standing Condos Total
2009 Sales 13 11 2 26
2010 Sales 17 15 11 43
In Escrow 19 27 8 54
In addition to the 43 properties that have sold, there are 54 properties in escrow at the present time. 22 of these properties are short sales and realistically I anticipate that maybe 1/5 of them will actually close escrow. That means roughly another 32 properties that are currently in escrow should close by the end of April.
My best estimate at this point in time is that unit sales will increase somewhere between 35% and 50% versus 2009. The higher number would bring us back to the level of sales we experienced in 2007, which by Incline standards was close to historical norms. But, still a far cry from the 600+ properties per year that were selling during the peak years of the real estate boom.
The reason for the big flurry of activity early in 2010 is that we still have the home buyer tax credit, lots of good properties have come on the market at reasonable prices and interest rates remain very low. Also, more sellers are being realistic about how to price their properties and negotiate with buyers after the carnage last year.
Looking closer at the sales of houses and condos we can see that buyers in the moderate price ranges are still playing a waiting game and sitting on the sidelines for the most part. All 27 condos in escrow have asking prices under $600,000. Of the 17 houses in escrow, only one is priced between $700,000 and $1.4 million. Buyers are snapping up properties at the low and high ends of the price spectrum, while moderately priced properties continue to languish.
The median price for all homes sold since January 1, 2008 still hovers just under $1.1 million. Sellers in this price range are finally realizing that they have to negotiate fairly with buyers, who for the most part, are making discretionary purchases. However, when we see a seller throw in the towel, buyers need to move quickly on properties that are priced below fair market value.
It is difficult to estimate the average days that a property will stay on the market in Incline Village. There are so many variables and price is only part of the equation. Although the MLS will tell you that the average property in Incline Village is on the market approximately nine months, major factors include the specific location, quality, original asking price and desirability of a particular place. Good quality properties at reasonable prices will move quickly, less desirable properties in poor locations may languish for several years. In March, a two bedroom condo came on the market in Third Creek priced just under $550,000 and it got an acceptable offer in less than 10 days. Yet neighboring condos in the complex have been offered for sale for 6 months, a year or longer.
One place that has seen a big jump in activity is the McCloud condo complex. In 2008 and 2009 there was a stalemate between buyers and sellers and only 6 condos sold each year. Counting closed escrows and properties in escrow, there have already been 9 sales this year in McCloud.
Prices in McCloud have retreated sharply from $620,000 to a range of $350,000 - $450,000 for a 2 bedroom, 2 bath, floor plan. The big variance in sale prices in the complex is based on location, upgrades, view, proximity to neighbors and furnishings. Most sellers kept their asking prices in the mid-500s until late in 2009, then came to the realization that buyers were no longer willing to pay over 500K for these condos. Sellers in McCloud in general have become more realistic and buyers are making purchases now that asking prices have come down significantly from the peak of the real estate boom.
Sharp buyers have a 2nd chance to purchase some long term investments at 2002 and 2003 prices, not on Wall Street, but right here in the Incline Village real estate market. New properties are coming on the market every week during the Spring and Summer. With sellers having received a good dose of reality the past 2 years, there should be some nice opportunities for savvy buyers in 2010.
BEAUTIFULLY REMODELED - 66 MCCLOUD - JUST REDUCED $59,000!
2BR, 2BA, 1,162 Sq. Ft., Mud Room, Over-Sized Deck - $490,000
THE BEST MOUNTAIN VIEWS OF ANY CONDO FOR SALE IN MCCLOUD
Click Here to See A Virtual Tour
PASSIVE SOLAR ENERGY PROJECTS YOU CAN DO IN 2010
With an average of 300 days of sunshine each year it’s only natural that property owners in the Lake Tahoe Basin look to the sun as a source of energy. Since Incline Village faces south, we can derive greater benefits here than residents living anywhere else around the lake.
One of the simplest and most cost effective ways to bring additional light and passive solar energy for heat into your home is to limb up low hanging tree branches that block windows. This is especially effective for capturing heat during the winter months when the sun is low on the horizon. In the summertime, the sun rises quickly high in the sky and the roof will shield your house from excessive heat buildup. Removing limbs on the lower 1/3 of tree trunks that are close to your residence will reduce the risk of fire hazard and help with the passive solar heating of your home.
Skylights are another very effective way to bring in natural light and sunshine for heat. You can have them installed in many different styles and sizes. Some of the more popular versions come with remote control blinds that you can open and close to adjust for just the right amount of light and passive solar warmth. Or you can have decorative shades made to add a splash of color. Whether you choose ones that open and close manually or remotely is a personal preference.
By utilizing natural sunlight from October to April you can dramatically reduce your heating bills. This is especially true of homes that face south and west. Adding heavy drapes to large windows especially on the west and north sides of your property (where the wind blows hardest and you tend to get more drafts) will allow you to retain a lot more heat into the nighttime hours.
Spring is a great time to contact one of the local tree service companies and make an appointment before they get into the busy summer season. Take a walk around your property as the snow is melting and determine which trees and limbs can be removed (conforming to TRPA rules of course). It’s also a good time to get in touch with a contractor if you are thinking of installing skylights.
Incline Village is the perfect location to take advantage of using the sun’s energy for light and heat several months each year. By planning now and getting your projects completed before the end of summer, you will be able to take maximum advantage of the sun when autumn arrives.
LAKE VIEW HOME ON STREET TO STREET LOT - 673 ALPINE VIEW
Remodeled 5br, 4ba, 2,910 sq. ft., Hot Tub, Sauna, 2 Decks, Year 'Round Creek
$1,250,000 - Click Here to See A Virtual Tour
SHOULD ABSENTEE OWNERS SELL, RENT OR MOVE
INTO THEIR INCLINE VILLAGE PROPERTY IN 2010?
One of the biggest dilemmas for absentee property owners in Incline Village and Crystal Bay is what to do with their property in 2010. With prices still soft for all types of properties and the inventory level still quite high, it is going to be a buyer’s market in the foreseeable future.
There are many things to consider if you wish to sell your property this year. First of all, do you really want to compete with any of the bank owned or short sale properties in your neighborhood? Even though only 16% of all the sales in 2009 in Incline Village were distressed properties, these lower priced sales negatively impacted the prices of nearby properties.
On the positive side, sales activity has picked up significantly in the past six months. This means that property owners have a slightly better chance of selling in 2010 than last year, but only if they price their property in line with current market conditions. For condos, this means something around a 2002 or 2003 price. The pricing of houses will vary widely depending on location, view, lot size and other factors. Regardless, buyers are still being very selective and only buying those properties where they feel they are getting a good location and great value.
Even though the inventory of houses still exceeds one year, there are very few good values in the $800,000 to $1.6 million price range. Many of the properties on the market suffer from weaknesses such as road noise, very close neighbors, dated interior or other negative qualities. When buyers have a lot of choice in a soft market, they can pass on the less desirable properties and wait patiently to satisfy their dream of owning a place at Tahoe.
The Incline Village property owners in the best position to sell this year are those who have owned their places for a long time and have a lot of equity. There is a shortage of quality Lakeview Homes in good locations under $1.5 million. There are very few remodeled, low elevation homes at good prices. So, sellers with these types of properties are in the most enviable position of any property owner trying to strike a deal in 2010.
Conversely, condo owners in the moderate price ranges between $500,000 and $1,000,000 will find themselves struggling to entice a buyer. As we go to press, every condo in escrow is priced under $600,000. And the inventory of condos still hovers between two and three years. This means we won’t be seeing upward price pressure on condos for quite some time. Condo owners will have to price aggressively, do the necessary repairs and spend money on staging to reel in a buyer.
So, if this is not the right time for you to sell your property is it a good opportunity for you to earn additional income by renting it? Vacation rental activity has picked up significantly when compared with one year ago, but the long term rental market still has a very high vacancy rate. It is possible to find a long-term tenant, but rents have dropped about 25% versus 2 years ago.
For some property owners, doing vacation rentals to earn some supplemental income while waiting for prices to strengthen will be the best option. Anyone living in a state with high personal or business income taxes may wish to consider moving into their Incline Village property full time. If you have a home based business, there is a lot of validity to relocating to Nevada where there are no personal or corporate income taxes. And you get to enjoy the benefits of all of the recreational facilities for which you’ve been paying those IVGID fees. For those who wish to sell, it will take a combination of a fair price, good staging, attention to buyer feedback and aggressive marketing to find just the right buyer.
FURNISHED LAKE VIEW CONDO - ONLY $380,000
111 Bitterbrush - 2BR, 2BA, 1,232 sq. ft., Deck, Garage and Carport
Click Here to See a Virtual Tour
Click Here to See All of My Listings and Virtual Tours
February April May July October December
May June July August September October December
Copyright 2010 Don Kanare - All rights reserved.
Inside Incline is entirely written and published each month by Don Kanare for property owners and others who have an interest in Incline Village and Crystal Bay. If you have any questions or comments, please contact me at send an e-mail to: Don@InsideIncline.com