|
I live and work full time in Knowledge, Service
This website dedicated to |
Incline Village Real Estate Don Kanare - Realtor If You Would Like to Receive This Newsletter Automatically Each Month,
Send Me An E-Mail. Your Information Will Never Be Divulged to Anyone. 
Click Here to See All of My Listings and Virtual Tours For Daily Updates on Incline Village Real Estate visit my web site at: www.InsideIncline.com This Months Articles: 716 BUNKER COURT - ON THE MOUNTAIN GC 3BR, 3.5 Bath, 3,674sq. ft., On Mountain Golf Course & Next to NV Conservation Land Stunning Sederquist Architecture with Open Beam Ceilings, Redwood Doors and Trim, Wraparound deck, Oversized 2 Car Garage, Offered for $1,900,000
What Types of Properties are Selling In Incline Village in 2009? A slow but subtle change has taken place in the mix of properties selling in Incline Village in the past 2 1/2 years. When the median price of a single-family residence rose to around $1,150,000 in 2006, we saw about 30% of all transactions taking place between $830,000 and $1.4 million. This trend was pretty steady until late 2008 but a remarkable change has occurred since then. In the past six months we've had 28 single-family homes close escrow and only two of those have been in this price range that I call the "sweet spot". It seems that buyers are opting to hunt for bargains under $830,000 or snap up higher end properties priced in excess of $1.4 million. With 28% of the listings currently on the market in Incline Village and Crystal Bay priced between $830,000 and $1.4 million and only 7% of the sales in the past 6 months occurring in this price range, it looks like we have a serious supply and demand conflict. The only possible outcomes are a continued stalemate and very few sales in this price range, or some sellers deciding to throw in the towel and accept a lower price. It may seem like a rather arcane mathematical exercise but looking at the numbers for the past three years and comparing them for the time period from October 20 through April 20 can really shed some light on the current market situation and where things might be trending. The reason I researched the heart of the off-season was to look at sales and price trends and then compare these numbers to the overall single-family home price trends for the past three years. First and foremost, the median price of a single-family home in Incline Village is no longer an accurate barometer of whether prices are going up or down. While the number of unit sales has declined dramatically from the peak year of 2005, the median price has increased due to the disproportionate number of luxury high-end homes being purchased in our micromarket. During the past six months the median price of a single-family home in Incline Village and Crystal Bay is $1,450,000 and if you look at the 18 sales in 2009 alone, the median is $1,775,000. When you compare these numbers to the median price for all of 2008 which is $1,120,000, you might think that the Incline Village real estate market is on fire and that prices have soared around 50%. The reality is that we have to evaluate each property on its own merits and in relation to what that property may be worth today versus what it sold for the last time it changed hands. With the vast majority of purchases and sales in Incline Village being discretionary and not the result of a job relocation or some other type of forced move most buyers and sellers can operate at their leisure. That is why in my opinion we have seen a dramatic decline in the percentage of sales taking place in the sweet spot and a significant increase in the percentage of sales at both the low-end and high-end. The anomalies of Lakeview properties that have been selling in the past six months are also worth a closer look. Of the 16 properties in this category that closed escrow, only three of them were under $1,440,000. All three of the lower-priced properties were between $520,000 and $540,000 due to either their location or their condition. Owners of Lakeview properties in the sweet spot have taken the attitude that either a buyer pays the price they are asking, or they will continue to enjoy their Lakeview while the prospective buyer can rent a room at the Hyatt. Unit sales have continued to trend downward in the off-season during the past three years. In the time frame from October 20, 2006 through April 20, 2007 we had 59 sales of homes. The following year that number dropped to 40 sales and during the past six months just 28 sales. With only two of those 28 sales taking place in the sweet spot, buyers in that zone have a lot of properties to choose from and a lot of negotiating leverage. There have been no sales in the past six months between $1,065,000 and $1.4 million. Sellers in this price range will be competing heavily with each other in 2009. So, each property owner in the sweet spot will have to make a determination as to whether or not they really need to sell this year. It might be better for some sellers to think about taking their property off the market and either enjoying it or renting it until market conditions improve. On the other hand, if you can sell and reposition your assets into another investment, that may be your best course of action. Each situation will have to be decided on its own merits and the goals and needs of each property owner. One important consideration that buyers will need to take into account is that size does matter. With only two exceptions in the past six months, every house that is larger than 2000 ft.² has sold for over $1 million. We may see the occasional foreclosure or high elevation location where you can purchase a house in excess of 2000 ft.² for under $1 million, but that will be the exception rather than the rule. It looks like the median buyer will continue to sit on the sidelines for the near future while the bargain hunters and luxury home shoppers continue to snap up the best values at opposite ends of the market. Whenever a property is priced at speculative level (which I consider to be at least 20% under fair market value), we are seeing multiple offers. In general, buyers have good negotiating power except when dealing with the owners of Lakeview and Lakefront properties. 174 Third Creek - 3BR, 2.5BA, 1846 sq. ft., 1 Car Attached Garage - $859,000 BEAUTIFULLY REMODELED ! - 2BR, 2BA, 1,111 Sq. Ft. - $559,000 VERY MOTIVATED SELLER!! Click Here to See All of My Listings and Virtual Tours 2009 Newsletters 2008 Newsletters May June July August September October December Copyright 2008 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 send an e-mail to: Don@InsideIncline.com |
| For Incline Village Real Estate Information or a Free Comparative Market Analysis of Your Property Contact Don Kanare Your Incline Village Real Estate Agent RE/MAX Premier Properties - 5250 Neil Road, Suite 100 - Reno, NV 89502 - (775) 828-3380 |