Incline Village Real Estate, Market Update February 13.2023
We hope everyone had a safe and fun Super Bowl weekend here at the lake, on the slopes, or wherever you were. We noticed this weekend seemed relatively quiet in town with about 50% of all Incline/Crystal bay Airbnbs being vacant, according to Airdna.com. Vacation rental occupancy is always a good indicator of how the economy is reacting to news headlines and overall jobs reports.
With more sun and melting snow, we saw a few new listings hit the market this past week in Incline Village and Crystal Bay. There were 4 new listings total ranging from $1,598,000 Bitterbrush condo to a new build in the Ponderosa Sub at $6,750,000.
We saw 1 price reduction in Tyrolian Village and 3 properties going contingent/pending, of the three, two of these properties were on the market for 130 days before going into escrow. Three properties closed escrow this week. 384 Winding Way finally closed escrow at $1,725,000 or $1,283/SF after being on the market for 202 days. 123 Juanita, Unit 1-21 Forest Pines closed escrow at $999,000 after first being listed 305 days prior for $1,349,000 and lastly a fixer in Incline Pines sold for $1,150,000 after being on the market for 232 days and it was originally listed at $1,500,000.
Without jumping to any specific conclusions or reasons as to why the market activity is what it is, we can see that overall, properties are taking longer to sell and they are selling at steep discounts. This is not for the lack of Buyers in our market, but perhaps for the massive gap that between the expectation of buyers and Sellers at the moment. Buyers want a deal and are fearful of overpaying while sellers are still wanting pandemic pricing for their properties here. It is taking several months and various price reductions for sellers to come to today’s pricing and for Buyers to be motivated enough to pull the trigger on an offer.
Sellers need to reevaluate their motivation to sell and shift their expectations on days on market and the actual sale price they are going to get for the next 2-4 years. The significant appreciation we saw year over year in Tahoe is an anomaly and luckily, many sellers still have significant equity to cash in on even though the buying frenzy has seemed to dissipate. The market remains healthy and there is plenty of demand. Buyers are still purchasing with cash and loans, and they are waiting for inventory to grow as they can be pickier on purchasing exactly what they want instead of jumping on a property that only meets 60% of their criteria.