Don Kanare - Realtor / E-Pro - Your Incline Village Real Estate Agent - www.InsideIncline.com
Lakeshore Realty - 954 Lakeshore Blvd. - Incline Village, NV 89451 - 775-831-7000 / 775-831-6777 (fax)

Incline Village Real Estate Condo Information - MLS Listings and Sales Analysis

MARKET ANALYSIS OF CONDOMINIUM SALES IN INCLINE VILLAGE FOR 2006, 2005 AND 2004

Article Written by Don Kanare on July 12, 2006
To Read the Most Current Information See Don's Weekly Incline Village Real Estate Update

In the past 30 days we are starting to see sales activity pick up but it still has not approached the level of 2005 when we had 20+ properties each week going into escrow in July and August.  There have been price reductions on 2 to 10 properties almost everyday, but most of these are bringing properties that were ridiculously overpriced down to the level of just substantially overpriced.  As more homes and condos continue to sit for longer periods of time, I anticipate that those owners who really wish to sell their Incline Village homes will adjust their prices down to fair market value.  Everyone else who is just hoping to get their number will be sitting on their For Sale signs for a lot longer period of time.

Inventory levels have risen since June, we now have about 220 houses, 162 condos and 57 free-standing condos on the market at any one time.  Some of the most recent price reductions such as the houses at 771 and 718 Golfer's Pass Rd and the condo at 898 Peepsight are now priced under market in my opinion and I expect them to sell quickly.  In general, we are seeing a lot of patience among buyers who are waiting to see if their favorite property will be reduced in price.  I say, stop waiting and write the offer for the price you think is fair, if the seller is serious, they will negotiate with you.

An asking price is nothing more than an invitation to negotiate.  If you are looking to buy Incline Village real estate, forget the asking price and instead ask yourself, "What is this property really worth?"  Then, write an offer based on your own appraisal, not some agent's or owner's fantasy of what they think the property should sell for.  

Oddly enough, we have seen more activity in the $2 to $3 million price range in 2005 and 2006 than in the past 5 years.  No one seems to be able to explain this phenomenon, but I have one theory.  There are a finite number of quality lake view homes in the 3000 to 4500 sq. ft. range.  Astute investors are snapping up these properties since the demand for quality lake view properties outstrips supply over the long term.  If you are looking in this price range, you will find some excellent variety and a few good deals such as the 5500 sq. ft. house at 565 Sugarpine for $2,195,000.

Article Written by Don Kanare on June 9, 2006

Since I wrote the article below back in February our inventory situation has changed dramatically here in Incline Village.  If you take a look at our MLS you will see there are approximately 135 condos on the market as of this writing compared to 88 back in February.  In the McCloud complex alone there are now 16 properties for sale and we have seen price reductions for the two-bedroom units which have glutted the market recently. However in Third Creek there are still only four properties on the market and each time a unit comes on that is priced fairly it tends to go into escrow in a reasonably short time. 

Incline Village real estate sales saw a an up-tick in properties in the $800,000-$900,000 range going into escrow in the past few months.  It is good to see some strength in this part of the market as there had been only one sale in this price range during the first quarter.  The median price is holding firm this year for condos at $499,000 compared to $485,000 for all of 2005.  However, overall sales of condo units are down by approximately 54% when compared to 2005 which was by the way a banner year.  When we look back historically over the past five years we see the unit sales are down approximately 33% year to year.  The historical records also show that the median prices of condos in Incline Village have been marching steadily upward and have almost doubled in the past five years.

In late 2004 and most of 2005 we had very little inventory and great demand as the first wave of baby boomers began to move into their retirement homes.  In February of 2005 there were only 50 condos on the market, our inventory is now almost triple that and prices rose dramatically especially on the low end during the interim time frame.  It is only natural that as prices rise and if inventory has been low that sellers will rush to market to provide a greater supply until supply and demand come back into balance.  In the McCloud complex we have an excess of supply in relation to demand so prices there have softened slightly.  In Third Creek we have a shortage of supply in relation to demand and prices continue to hold firm and ratchet slightly upward.

There will always be a shortage of quality Lake view properties due to the fact that only 10% of all private property at Lake Tahoe has any type of Lake view even a tiny peek.  There are a significant number of Lake view houses as you go up to higher elevations in Incline Village, but there are a finite number of Lakeview condos and I believe these will always command a premium.

In summary, it looks like the low end of our market is a sellers market coming into the summer of 2006, the moderate price range from $500,000-$1,000,000 is a neutral market and anything over $1 million is a buyers market in the condo sector.  It's pretty much a sellers market for houses and freestanding condos up to $1.2 million, then a neutral market up to $2 million, and a buyers market as you get up into the stratosphere. With 20 to 30 new listings coming on the MLS each week in Incline Village it'll be interesting to see how prices hold up during the busy summer season.

Statistics Updated February 25, 2006     -     Article Written February 13, 2005

Even though it's winter time, the Incline Village condo market continues to show strength at all price points up to 650K.  Although many sellers initially priced their properties much too high last summer, reality is kicking in and we have seen numerous price reductions.  Reasonably priced properties continue to be snapped up although more slowly in the off season than in summer, and it appears that the only thing that will slow down sales will be sellers asking prices that are too high in relation to the quality of their property.  

As long as sellers keep putting properties on the market at fair prices, there are enough buyers out there looking to purchase them.  The only condo complex that appears to have hit the saturation point is McCloud.  There were 20 sales of McCloud condos in 2005 and that appears to have satisfied the pent-up demand from the prior year when inventory had dwindled.  As of this writing there are 10 condos for sale in McCloud and most are 2 bedroom units in the 630K to 660K range. 
  
In mid-winter, even a well priced property will take a little longer to sell due to our seasonal resort market tendencies.  What I mean by this is due to the fact that there are far fewer visitors than in the Summer time and no big event to draw tourists up to Tahoe until the 4th of July except for President's Day weekend, you don't have hordes of prospective buyers looking at properties.  Buyers plan their visits a week or more in advance this time of year and you don't have crowds just milling around at open houses on the weekends like you do in July and August.  So, sellers need to be patient and realize that the buyers will show up, just in their own time frame, not in a rush.

Buyers can expect to pay in the $450 to $650 per square foot range for quality properties within 1 mile of the beach.  Fixer uppers continue to sit as there is little demand in our local market for properties that are high priced and need work.  

Lakeview condos under $1 million are few and far between, with the best values being the penthouse at #305 Burgundy Hill and a couple of units in Bitterbrush.  All of the lakefront complexes such as 999 Lakeshore, Crystal Shores West and Crystal Bay Cove are well over a million for even the smallest units.  A 2 bedroom condo in Third Creek with a peek of the lake closed in July for 765K, the highest price ever paid for a 2 bedroom unit in that complex.  

There are only 20+ free standing condos on the market at any given time and the best values such as #26 Glenrock and 1120 Lucerne have already been sold.  My favorite in this category at the present time just went into escrow at 1412 Tirol Drive.  The price had been decreased to $799K from $859K and it was snapped up shortly thereafter.   (Read the rest of the article on the condo market)

If you would like the comparable sales statistics for any condos not listed below, please send me an e-mail or call me at 775-745-5820 and I will be happy to provide you with whatever information you would like without any charge or obligation.  Knowledge is power and the more information that I can provide to you the better the decision that you can make when you are buying or selling property in Incline Village and Lake Tahoe.

Questions about real estate?  Please send an e-mail or give a call to Don Kanare at Lakeshore Realty at 775-831-7000.