Incline Village Real Estate - Condo Market Analysis 2005 - MLS Information Update

This article was written in 2005 and is for archival purposes only.  It is not indicative of the Incline Village Real Estate market in late 2006 and beyond.  To see the current Incline Villge market analysis please read our Weekly Real Estate Update.

2004 - 2005 Incline Village Condo Market Analysis - Page 1

The greatest price increases have been seen in condos under $400,000, with strong upward pressure all the way to 900K in 2005. As the chart shows, the total number of condos that sold under 500K in 2004 jumped dramatically from previous years.  In 2005, it is getting difficult to find anything habitable under 600K, and as recently as 2004 the majority of sales have moved from below 300K to the 301K to 500K range. This reflects the increase in price among lower-end condos so the percentage of annual sales in this price range has shifted upward. A similar change in the total number of purchases can be noted for the condos sold in the 501 to 800K range.  As prices overall continue to ratchet upward (especially on the low end), the marginal buyer will become squeezed out of our local market.

The total number of units sold in 2004 increased substantially and there are some clearly identifiable trends in the real estate market in Incline Village and Crystal Bay.  To further analyze these trends, we need to take a look at not only the general price ranges for houses and condos but we must also look at specific subdivisions and condo complexes to get a true picture of how prices are changing in different parts of the village. Not all houses under $1 million are rising equally in value and not all condos under 500K are rising equally at the same time.  Why these price differentials are occurring and how you can maximize a future investment are issues that will be analyzed in greater detail.

Let's start by taking a look at what has happened to the prices of lower-end condos in 2004.  These properties can basically be divided into 2 types; smaller  properties in popular complexes under 500K and fixer / remodel opportunities.  The smaller, popular complex properties have been selling as fast as they come on the market if they are priced reasonably.  In the Mountain Shadows complex this means prices in the range of $300 - $310 per square foot, in Third Creek between $360 - $400 per square foot and in McCloud prices zoomed in 2004 past the $500 per square foot level and are pushing $600 per square foot this year.  These figures are for 2 and 3 bedroom condos that are under 1800 square feet.  Prices are adjusted up or down based on location in the complex, view, garage / parking, quality of interior, proximity to amenities, etc. 

In contrast, there are some condos in less popular complexes in the under 500K price range have been sitting for quite a long time.  These properties either have repair and / or remodeling issues that need to be addressed, or they are priced so out of line for the quality of the unit that no one in their right mind would pay anything close to the asking price.  When a condo has sat on the market here for over 90 days there is usually something wrong with the price, the property or both.  Since there have been only about 50 to 60 condos on the market on average at any given time in 2005, when a property is listed and priced properly, it sells quickly.  This is quite a contrast to 2003 when the average condo inventory was in the range of 85 to 95 units at any particular time.

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