Incline Village Leads Lake Tahoe in Real Estate Sales
October 2nd, 2007
Incline Village continues the trend in growing sales prices. The average price of a single family home in Incline Village, Nevada, jumped 30% to $1,888,372 year to date through September 30, 2007 over the same period last year. The median price was up 15% to $1,215,000 for the same period. Note that this data is exclusive of Condos and PUD (freestanding townhomes).Sales volume increased 16%, as 107 homes sold through the first 9 months of 2007 compared to 92 the same period in 2006. Sales volume is still down from 2004 and 2005, where an average of 160 homes sold in the first nine months. List-to-sale prices are remaining steady, though. Sales prices are averaging 94% of list price year-to-date 2007, compared to 93% for the same period last year.Higher end homes are outpacing the low end market, as 31 homes sold for more than $2 million in the first nine months, up from only 10 the same period last year. The average number of days on market has increased year-to-date in 2007 to 187, up from 158 days for the first nine months of 2006.Larger homes are also the top sellers, as the average square footage is up to 3,362 compared to 2,865 for the first nine months last year. More homes sold in Lake View subdivision over any other area in Incline Village, totaling 18 of the 107 sales year-to-date. Last year, most of the sales were concentrated near the Championship Golf Course, totaling 16 of the 92 sales for the first nine months of 2006.The trend for high-end home sales continues in Incline Village, in sharp contrast to the continued slowing markets in surrounding Reno, Nevada, Sacramento, California and other Lake Tahoe real estate markets. We noticed the trend early 2007 for higher end homes beginning to move, while a large inventory of moderate to low priced homes still remains for sale.
Incline draws a majority of home buyers from the tech-rich Bay Area and Sacramento markets. This data shows more buyers are returning to the market since the flattening out in 2006, where home sales dipped slightly, but the overall market including condo sales actually grew 8% in median sales. There are still many buyers in the Incline Village market closing cash deals. The constraint of mortgages does not play a role in many $1 million and over sales, where as the low end of the Incline Village real estate market may be impacted by this.
Mark Buergin, CA & NV Broker, Chase International states “The numbers are telling us that homeowners are waiting longer to get close-to-asking price for their homes. We have also seen two sales over $9 million in the past 3 months, and new $15 million and $32 million lakefront listings that went on the market this past week. Although many lower end homes are not selling, it appears the cash market is strong for high end homes in Incline Village. Sales in Incline Village are especially strong compared to the rest of the Lake Tahoe areas which are not faring as well. The desirability of a Nevada residence coupled with all of Incline’s amenities is a strong draw for the Village.”
We know scarcity is the one of the main factors driving the price of real estate at Lake Tahoe and Incline Village sub-market. Because Incline Village is almost built-out, the existing inventory will not increase in coming years while demand inevitably will.
View 2007 3rd quarter stats for all Lake Tahoe, Truckee and Reno Markets.
October 13th, 2007 at 8:59 am
Great work Lexi and Mark! Looking really good.
Shari
November 15th, 2007 at 9:46 pm
In my latest report for single family home sales, I looked at year over year data through the end of September- 2007 compared to 2006. I reported median and average sales prices. The median price for a SF home increased 15% over that period, while the average price increase 30%. In this case, the 30% reflects some very high end sales, and that is why 15% median price growth is more reflective of the market.
My intent is not to “cherry pick” the data. I ran the figures and reported on median price, average price, days on market, sales volume, list versus selling price, and sales totals for neighborhoods. However, previous comments are on target that I should put the data forward on home sales under $1.5 million, because there is a dichotemy in the Incline market. Point well taken, and I have run the sales stats for high end versus lower priced sales to give viewers a more clear picture of our market.
Here is a summary of year to date single family homes sales data for Incline Village, not including PUD’s (freestanding townhomes). This is to Oct. 1, through the 3rd quarter.
Units Under $1 Mil sold dropped 17%:
2007 units sold under $1 million= 35
2006 units sold under $1 million= 42
Units Over $1 Mil sold up 31%:
2007 units sold over $1 Mil= 72
2006 units sold over $1 Mil= 50
$1 million plus units comprise about 70% of the single family home market in Incline Village.
For the 30% of the single family home market below $1 million, here are the sales figures to Oct. 1, through the 3rd quarter.
Average sales price of units under $1 Mil dropped 2%
2007 average price units under $1 Mil= $803,254
2006 average price units over $1 Mil= $818,355
Median sales price of units under $1 Mil dropped 4%
2007 median price units under $1 Mil= $810,000
2006 median price units over $1 Mil= $846,500
I hope this clarifies that home sales under $1 million are not strong this year over last. The median price is down 4% and aerage price down 2%. Note that the volume is down 17%.
Incline Village is very unique. The tax advantages of being on the Nevada side of the lake coupled with the limited number of lots and demand for these have stabilized this market, where neighboring markets like Reno and other areas around the lake have dropped. We see that the upper end of the market is moving, the lower end of the market is stagnant, and that translates to buying opportunities, especially in the lower end where prices have fallen.
We don’t know if prices will drop further, but we know they are attractive relative to the upsurgence we saw a few years ago. Hope this is more “fair and balanced” reporting, I welcome your criticism and happy to provide more data.