Incline Village Home Sales Down 6% in 2008
Data source Incline Village MLS deemed accurate but not guaranteed
Incline Village has been affected by the economic slowdown, reflecting lower home sales prices and fewer sales, as seen across most markets. The median sales price of a single family home in Incline Village, dropped to $1,383,060 in 2008, down 6% from $1,24187,500 in 2007. This is better than you might expect considering the sales volume dropped 39%, as 84 homes sold in 2008 compared to 138 in 2007. Sales-to-list prices have dipped too, sales are averaging 91% of list price in 2008, compared to 94% last year. Higher end home sales have dropped, as only 12 homes sold for more than $2 million in 2008, down from 33 last year- a 64% drop. The highest priced home sale so far this was $6.7M for a new home on Vivian Lane with shared beach and pier access, whereas last year’s high was $13,950,000 for a Champagne Estate. Note that two private lakefront sales occurred earlier this year, one close to $30M and the other close to $11M. The average number of days on market has apparently dropped to 178 from 183 last year, although I would argue this data can is skewed as listings have been withdrawn and re-listed or listed by another agent and the clock is reset. I know of many listings that have been pulled off the market in the winter and re-listed in the spring. Average square footage for home sales has also dropped from 3,204 last year to 2,953 this year and price per sq. ft. has dropped from $539 to $462- many of the larger homes in the upper end market are not moving, as evidenced by the lack of sales over $2M.
More homes sold in Millcreek, Lakeview and Lower Tyner Areas over any other area in Incline Village, totaling 30 of the 84 sales in 2008. Last year, most of the sales were also in Lakeview Sub. and Millcreek, totaling 37 of the 138 sales for 2007, as buyers continue to look for good values close to the Lake. The Eastern Slope, the Championship Golf Course and Upper Tyner were also popular areas for sales this year, many sales featuring great lake views or close proximity to our Robert Trent Jones 18 hole course.
When you look at the median home price for 2008, it is down from the high in 2007, but on par with the median price from 2005. What has really dropped off are the number of sales, down nearly 40% from last year and less than half the number of sales both in 2005 and 2006. This points to the fact that many sellers opt not to sell rather than reducing the price, and the majority of home owners in Incline Village have that staying power. Many homes are second or third homes owned free and clear, many owners reside out of state but some are used as primary residences to take advantage of Nevada tax benefits. The drop in median price of only 6% compared to the 20-30% drops in pricing in areas such as Las Vegas, Sacramento, Los Angeles and even Reno along with the relative lack of REO and short-sales are reassuring for homeowners.
Condo sales show a stronger decline in median price, dropping 11% to $521,500 in 2008 from $585,000 in 2007 with sales volume down 34% with only 64 units sold in 2008 versus 97 sold in 2007. No units sold over $2M in 2008 while 5 units over $2M sold in 2007.
Median price actually increased for PUD’s (freestanding townhomes), mainly due to sales of new construction sales in Incline Creek Estates, a Scott Companies/Intero development at the old Sierra Nevada College campus. The median rice for PUD’s increased 12% to $1,070,000 in 2008 up from $955,000 in 2007. Number of units sold decreased by 46%, however, as 25 PUD’s sold in 2008 versus 46 in 2007, following the downward trend in sales volume seen in homes and condos, alike.
The factors that make Incline Village desirable such as tax incentives, limited number of lots (approx. 9,000 in Incline and Crystal Bay), proximity to the Bay Area, and year round vacation destination will continue to bring buyers into the market. The question is, how soon and at what price. Most sellers in Incline Village do not have to sell, most properties in Incline Village do not have mortgages on them. When demand rises, as it certainly will, prices will follow suit. The key is to get into this market before the rest of the buyers regain their footings and start to move back into the market, albeit this will likely not be until 2010. Smart buyers are sitting and waiting, and watching the trends and looking for individual opportunities such as we have seen recently at 121 Rubicon at $1.4M- one of the best buys for a large, well constructed home one block from Lakeshore and 527 Sugarpine at $2.6+M- a benchmark for new construction with a lake view. Check back weekly to review new listings, pending sales and closed sales.
2008 Sales Data for Incline Village, Nevada
All data from Incline Village MLS, deemed reliable but not guaranteed