The period between March and May 2024 might just be the optimal time to make your move in the Incline Village and Crystal Bay real estate market. Recent data points towards a potential turning point, signaling that the anticipated post-pandemic price adjustments have finally materialized. While our market didn't experience as sharp declines as others, many prospective buyers have been cautiously observing, waiting for signs of a market bottom. The significant rise in interest rates and the decrease in available homes over the past year suggest that the demand for desirable properties could drive prices upward as we approach spring and summer.
In our resort community, real estate purchases are often discretionary, reflecting the desire for vacation homes and investment properties. Most sellers here have the luxury of time, planning their sales according to their preferences rather than urgent financial needs. However, the recent shifts in our buying demographic, spurred by pandemic-related changes, have brought new dynamics to our market. The influx of investors seeking cash-flowing Airbnbs led to an equity bump and increased sales activity in 2020-2022. Now, with the decline in short-term rental occupancy rates, some property owners may find themselves in a precarious financial position, potentially needing to sell to avoid financial strain (not to mention all the insurance woes happening with the local HOAs).
While one might expect a downward pressure on prices due to increased supply and decreased demand, the market response remains uncertain. Economic factors like speculative buying and unforeseen events affecting individuals' financial situations have contributed to the imbalance in recent years. However, with a limited number of distressed properties in our market, the balance between "need to sell" and "wish to sell" properties may shift in the coming months.
As property prices have adjusted to moderate levels, we're witnessing increased competition and shorter market times for the best deals. The winter months traditionally offer better negotiation opportunities for buyers, with fewer competing buyers compared to the summer season. Therefore, from now until May 2024, buyers could find themselves in a favorable position to secure good values across all price ranges, with fewer instances of multiple offer situations. The key is acting fast once the right property becomes available.
While the market may eventually return to a more balanced state, the current inventory shortage suggests that prices will likely return to an upward trajectory in the long term. For anyone considering a long-term investment in Incline Village or Crystal Bay real estate, the first half of 2024 presents promising opportunities to enter the market.