Incline Village Real Estate, Market Update: March 27, 2023
It's that time of year when property owners in Incline Village and Crystal Bay start to think about whether they want to continue using their place at Lake Tahoe or explore other options. With our local real estate market picking up steam, it's an excellent time to contemplate whether to trade up, trade down, hold on or cash out.
We’ve seen an uptick in activity this week in the Incline Village and Crystal Bay Real Estate Market with two new listings, seven properties going into escrow, one pending and four closed sales. Most notably, properties that have gone into escrow premium. We’re starting to see multiple cash offers and minimal days on the market on properties under $1M and high-end condos and homes are starting to go into escrow as luxury buyers are striking deals on a Tahoe place ahead of the summer buying competition.
Homes that went into contract this week range from a $650,000 2-bedroom condo on Alder Ave. in Incline Village to a $29,000,000 lakefront estate in Crystal Bay - showcased below.
455 Driver Way at $9,950,000 went into escrow after being on the market a total of 599 days. 1580 Vivian listed at $8,600,000 went into escrow after a total of 2567 days on market, 597 Fallen Leaf listed at $6,588,000 went pending after 156 Days on market, 539 Dale Dr. listed at $5,495,000 went into escrow after 530 total days on market and 387 Second Tee Dr, listed at $4,888,888 went into escrow after a total of 326 days on market. It appears high interest rates and instability in the financial markets right now are not deterrents to luxury buyers looking for a NV home at Lake Tahoe.
Owners of single-family homes that have appreciated by 40% or more in the past few years who have been thinking about downsizing into a condominium could find themselves enjoying the best of both worlds. This is especially true if you have a property with a lake view or a house in the Mill Creek, Lakeview or Championship Golf Course neighborhoods. With a relatively small supply and very good demand for these types of places you can likely sell your property rather easily during the spring months, purchase a condo or PUD in a desirable location and put a substantial amount of money in your pocket after completing both transactions. If you have another place to live, this also gives you the opportunity to cash out while demand is high and wait for the right place to come on the market and be perched and ready with cash in hand to make a competitive offer.
The reason this opportunity exists is because condo prices for the most part have not appreciated as quickly as prices of single-family homes in Incline Village and Crystal Bay. Since coming out of the pandemic and work from home world, condo prices have risen but are still behind the rate of homes. As of this writing, you can still find condos in highly desirable locations with asking prices that are under $1,300,000. Consequently, owners of single-family homes find themselves in a rare position where they can sell their property which has appreciated significantly during the pandemic and trade down with favorable economic results.
With the condo inventory hovering around 18 units for sale during this time of year, there is also the opportunity for condo owners to consider selling in the spring time and trade up to a larger property before they have to compete with the usual summer crowds. While you will normally have to come out of pocket a few dollars to make a trade up purchase, not having to compete with throngs of buyers in the summertime provides you with a better opportunity to get your offer accepted without having to pay over asking.
Inventory for single family homes is down 53% and condo inventory is down 62% from this time last year. Sales numbers are also down year to date with single family home sales dropping by 61% at 34 homes sales in 2022 to 13 in 2023 so far and condos dropping by 63% with 38 condo sales year to date in 2022 and 14 year to date in 2023.
Some property owners will make the decision to simply hold on and enjoy their house, condo or freestanding condo for the next few years. With rental regulations, a potential recession, and financial institution instability it appears that pricing in all classes in our market will continue stall while sales at least in the foreseeable future continue at a steady rate. Considering that Incline Village and Crystal Bay provide a fabulous quality of life along with superb recreational amenities, holding onto your property and living the dream on the Nevada side of North Lake Tahoe is a darn good alternative to not having a property at Lake Tahoe.
For some folks the nice levels of appreciation we have seen since the end of 2020 provide the ideal time to cash out. With low inventory levels and a massive winter, spring 2023 could be the right time to sell your property and ride off into the sunset for warmer, less snowy pastures. Property owners at Lake Tahoe have some interesting things to contemplate and a wide variety of options to consider in a real estate market that offers opportunities for everyone.