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)

With three quarters of the year behind us, let's take a look back at the sales and inventory statistics for the Incline Village Real Estate Market and see how things compare in 2006 vs. 2005. In a year when the media is talking doom and gloom, it's important to remember that like politics, all real estate is local. So, while other parts of the country might be experiencing price declines, that is not the case for property values in Incline Village.

The median price of $1,050,000 for single family houses is identical to 2005 at this point in time last year. The median price for condos has actually jumped by over $100,000 from $460,000 to $580,000. So, even though the actual number of units sold in 2006 vs. 2005 has dropped, the median prices reflect the true underlying value of real estate in Incline Village and Crystal Bay.

Sales of houses in units for the first 9 months of 2006 are down 45% (94 sold in 2006 vs. 169 in 2005) and sales of condos in units are down 58% (82 sold in 2006 vs. 192 in 2005).

The amount of inventory is up for both categories. We have 220 houses on the market as of Oct. 1, 2006 vs. 166 in 2005. For condos, the inventory now is 150 units, last year it was only 76. Inventory now is much closer to historical norms. The inventory in 2005 was so low, that whenever a well priced property came on the market it would likely sell in a relatively short period of time due to the laws of supply and demand and that one great intangible; the fear of missing out on a good deal.

To summarize the current market, inventory of houses and condos is up 35% vs. 2006, sales in units are down 52%, the median price of houses is the same as in 2005 and the median price for condos is up 21% over 2005.

There are a few pockets of softness in the condo market in those complexes where demand continues to outstrip supply. Contrary to the fears of some, my earlier predictions about the prices in McCloud have come true with only a tiny correction in the range of 5% vs. 2005. We have seen 4 condos in McCloud go into escrow in the past month, all in proximity to $570,000 - $600,000.

The Bitterbrush and Mountain Shadows complexes still exhibit some excess inventory and softening. But, I don't think anyone who bought 3 years ago in the high 200s to low 300s is complaining when prices now are nearly double what they paid. You can't expect to earn 20%+ appreciation every year. So, after a quick, steady rise in the 2004 - 05 time frame, the market needs time to settle before prices start climbing again.

The only areas where I see softness for the single family homes in Incline Village are at opposite ends of the spectrum. High elevation, low price homes are not in demand (especially since a good percentage of these need a lot of work), and low elevation, high square footage homes are not selling. Not many people want to own 5000+ square feet as a secondary residence, so good values in that size range continue to sit on the market.

From a subjective standpoint, I have noticed far fewer people coming to my open houses in 2006 vs. 2005. There is not the general curiosity among vacationers that we saw in 2004 - 05 when everyone was hot on real estate and there was a constant buzz at open houses. It's only natural that in a general sales slowdown people will lose their exuberance to some degree. Fortunately, my hard work has paid off, and I have closed as many deals as I did in 2005 and sold almost $6 million year to date.

I have found that in our current market you have to be proactive if you want to have a successful year. I continue to scour the market daily for the best values for my buyers and do lots of ongoing marketing work in an effort to get my listings sold. So, while other agents are complaining about the slow market, I'm working hard to make the next deal happen!

WHY AUTUMN IS A GOOD TIME OF YEAR 
FOR BUYERS TO WRITE OFFERS ON PROPERTIES IN INCLINE VILLAGE

If you have been looking to buy real estate in Incline Village, this is the time of year when sellers tend to get more motivated and are easier to negotiate with.  Educated sellers know that there will be very few visitors here between now and the Christmas holidays.  They also know that once the snow starts falling very few buyers are willing to write offers on property where they cannot see the lay of the land.  When you add up all of these factors combined with our traditional seasonal decline in sales from November through May you can understand why property owners who really wish to sell are more inclined to negotiate this time of year.

Many buyers are sitting on the sidelines and waiting to see what will happen with the Incline Village real estate market.  If a property that you like comes on the market, my advice is to ignore the asking price and to write an offer at what ever you consider to be the fair market value.  I have represented buyers in the past two years who have been able to purchase properties for $100,000 or more below the asking price.  This is possible when you structure an offer with very strong terms throughout, provide a detailed cover letter explaining why the price being offered is fair and reasonable and back it up with a very substantial earnest money deposit to show that you are serious.  When faced with the prospect of holding a property for at least another eight to 10 months or being able to sell at a reasonable price and reposition their assets, many sellers will negotiate a fair deal.

If a seller is trying to squeeze out every last dollar there is nothing you can do.  But you'll never know what type of a deal you can strike unless you are willing to present an offer.  I have no problem writing offers at whatever price my clients ask me to.  Some agents have a fear of offending a seller or their agent but I believe that properties sell for fair market value in most instances.  For those properties that have been sitting on the market in excess of one year without having received any offers, the seller cannot expect to get their asking price unless they are a willing to wait many years for the market values to appreciate up to the level they are asking.

So, with all of the good values currently available in the Incline Village real estate market and a lot of quality properties just waiting for a buyer to come along, I recommend that you write an offer on the property of your choice at the price you are willing to pay.  It only takes me about 35 to 45 minutes to prepare a purchase agreement and all of the supporting documentation.  This is less time than it takes to view 2 properties.  After all, you have nothing to lose by presenting an offer and you just might get a seller who will negotiate terms that are acceptable to you and find yourself making a purchase at a price that you never thought possible.

From October 2006 through March 2007, this newsletter will be sent to you bi-monthly instead of each month.

I will focus my energy on writing the daily market updates on my web site at: www.InsideIncline.com

Here you will find commentary on all the new listings and price changes in Incline Village, plus links to the MLS information for every property for sale in the Village. I consider it my job to keep you fully informed about the Incline Village Real Estate market all year long, and updating my web site everyday is the best way to get this information to the greatest number of people.

IS YOUR PROPERTY READY FOR WINTERTIME?

It's been such a beautiful summer here in Incline Village but early October may bring us a dusting of snow and with it a reminder that Winter is right around the corner. If you don't live here all year 'round, now is a good time to contact a handyman or other service provider & have them check the following items around your property:

Are there any pipes, faucets, irrigation system that needs to be drained? All hoses put away?

If you have gutters, are they free of leaves and pine needles so they won't jam up from ice?

Do you have heat tape installed on the roof areas above doorways / entries to melt snow and ice?

Has your fireplace and chimney been inspected?

             Is your roof in good shape to handle winter storms or do you need to do some patching now?

Your referrals are an important part of my business and are greatly appreciated!

For all the latest on Incline Village Real Estate

• New Listings Updated & Posted on my Web Site Every Day

• Weekly Updates on Current Trends, Open Escrows, Closed sales 

• Weekly Commentary on the Local Market

• Featured Properties

• Ski, Beach, Golf and Weather Conditions updated every week so you can know what to expect whenever you come to visit Incline Village and Lake Tahoe!

___________________________________________________________________________________

Inside Incline is entirely written and published each month by Don Kanare of Lakeshore Realty for property owners and 
others who have an interest in Incline Village Real Estate and Crystal Bay Real Estate.

If you have any questions or comments, please contact me at 775-831-7000 or Send me an E-Mail 

Copyright 2006 Don Kanare - All rights reserved.