Incline Village Market Update- March 14, 2011

*Update- 533 Eagle just closed escrow for $4,400,000, all cash sale. 1011 Apollo Way just went into escrow, list price $2,297,000 and 789 tyner Way also just went into escrow at $3,675,000. 11 new properties have gone into escrow in the past 2 weeks since this article was written.

Condos- Average sales price is up, number of new loans is up

12 condos have sold year to date in 2011 with an average sales price of $629,375, up nearly 48% from $426,127 for the same period last year with 13 units sold, and up from $466,577 in the 3^rd quarter of 2010. The price jump is partly due to one lakefront condo sale at Crystal Bay Cove that changed hands for $2.25M, although median price also increased to $535,000 up from $317,000 for this period last year.  Only 4 of these 12 sales were cash compared to 8 cash sales out of 13 sold for the same period in 2010. Average days on market was 155 in 2011 versus 193 for 2010.

Currently, 20 condos are in escrow with an average list price of $325,037. As these sales close, we will start to see the average sales price for condos drop back down from the highs these first months of 2011.

 Townhomes- Average sales price is up, number of new loans is down

Just 3 PUD’s, or freestanding townhomes, have closed escrow in 2011 with an average sales price of $577,167. Last year at this time, 9 units had sold with an average price of $702,778, due to 3 high-end sales over $1.2M. Median price for 2011 is $645,000 down slightly from $657,000 last year. We did only have 3 sales in the 3^rd quarter, all closing at the high end between $865,000 and $1.7M. One of the three sales in 2011 was all cash, where as only one of the nine sales in 2010 was cash, the rest were new loans.

Currently, there are 4 PUD’s in escrow, with an average list price of $513,000, still trending towards lower end unit sales in the near future.

Single Family Homes- Average sales price is up, number of new loans is down

A total of 15 single family homes have sold year to date in 2011, with an average sales price of $1,887,533, up from $1,231,750 for the 18 homes sold during same period in 2010 and from $1,215,935 for the 3^rd quarter of 2011. This average price jump reflects one lakefront sale at 935 Lakeshore that closed escrow from $9,050,000, all cash. The median sales price also increased to $1,185,000 up from $925,000 last year. Number of cash sales jumped slightly as 8 of the 15 homes sales were cash in 2011 while 6 of the 18 sales were cash for the same period in 2010.

Currently, there are 15 homes in escrow, with an average list price of $1,378,677. Four pending sales are listed over $1M, with two between $4.5M and $5.7M.

Overall, we have seen a few more cash sales in homes and PUD’s so far this year,  but a few more new loans for condos this year. Both average and median sales price has jumped for condos and single family homes, where as fewer PUD’s have sold so far in 2011 (only 3 unit sales so far) at a slightly lower price point. It is early in the season, and we do typically see an increased number of listings come onto the market in the second quarter, with higher numbers of sales following suit. Interest rates are still very low and there are many types of loans available for buyers, especially for second homes. We will likely see continued cash sales in the high end of the market, with many buyers opting for loans (even if they are able cash buyers) in lower priced homes and condos, as the combination of stabilizing real estate prices with low rate loans appeals to many buyers.

Data taken from Incline Village MLS, deemed reliable but not guaranteed. Sales not listed on the Incline MLS are excluded from the results.

Single Family Homes

The number of single family homes sold increased to 113 in 2010, up from 89 in 2009 (note 2 additional sales are pending), although both median and average sales prices declined. Average sales price dropped slightly from $1,495,789 in 2009 to $1,465,688 in 2010. Median home sales price dropped more significantly from $1,000,000 in 2009 to $795,000 in 2010 indicative of many more lower priced home sales. Average square footage of homes also dropped from 3,502 to 3,202, reflective of the many generally smaller, lower priced homes that sold. Days on market has decreased from 410 in 2009 to 286 in 2010, which is a positive sign for sellers looking for a quicker close. List to sale price ratio has remained steady with sales going for 90% of asking, on average.  7 homes priced over $5M sold in 2010, compared to only 1 home over $5M in 2009.  There were also 7 lakefront sales in 2010 compared to 5 in 2009.

There were 45 cash sales in 2010 compared to 37 in 2009, still representing a little less than half of all home sales in the market as compared to new loans taken out.

Condominiums

The number of condo sales rose to 110 in 2010 up significantly from 69 in 2009 (note 5 additional sales are pending). The average sales price dropped from $447,379 in 2009 to $405,788 in 2010, and the median sales price dropped from $350,000 in 2009 to $333,000 in 2010. Average square footage of units sold remained steady at 1,424 in 2010 compared to 1,423 in 2009, although average price per sq. ft. dropped from $299 in 2009 to $272, reflective of the drop in sales prices. Days on market actually increased from 248 in 2009 to 285 in 2010, possibly due to the number of distressed or “short sales” which often take longer to get bank approval, in some cases 6-9 months or more, although many banks have streamlined their processes and can take a month or less to approve. Bank owned homes or “foreclosures” typically take much less time to close, on par with conventional sales. List to sale price ratio has remained steady with sales going for about 93% of asking, on average. This is encouraging for the condo market- prices have fallen, but number of sales has increased sharply.

PUD’s – Freestanding Townhomes

The number of PUD’s sold increased slightly to 29 units in 2010 from 24 units in 2009, yet unlike both homes and condos, both the average and median sales prices jumped. Average sale price increased from $653,857 in 2009 to $786,865 in 2010 with median price jumping from $590,000 in 2009 up to $812,500. Similar to the condo market, we did see a larger number of high end sales in 2010- up to 8 from only 4 sales the year prior. Interestingly, the average square footage of units increased from 2,069 sq ft to 2,470 sq. ft. indicative of the larger, more expensive units sold. The average list to sale price went from 95% in 2009 to 91% in 2010, with sellers accepting lower offers for their homes and buyers seeing the values. Days on Market increased from an average of 279 in 2009 to 366 in 2010, rewarding patient buyers.

Overview

In all, total sales for all units in 2010 is anticipated to be at least 252, nearly 40% more than the number of units sold in 2009 at 182 (note 7 additional sales are pending at this time). However, the drop in median and average sale prices in homes and condos reflect price reductions and willingness of sellers to take lower offers. The PUD or townhomes actually increased in median and average pricing, reflecting the jump in high-end sales, with double the sales over $1M in 2010. We have seen an increase in sales in both the high and low end of the market, with buyers seeing value and opportunity in each end. Lake Tahoe’s appeal and NV tax benefits will continue to draw many primary residents as well as second home owners back into this market, so accessible from The Bay Area and a direct flight from many locations into Reno-Tahoe Airport. With a bid for the 2022 Winter Olympics, Lake Tahoe and Reno have huge potential to benefit from the investment in facilities to host the games and draw spectators from around the world. The opportunity to own property in this pristine mountain paradise has never been better!

Disclaimer- information taken from Incline Village MLS at time of publication, data deemed reliable but not guaranteed. Data excludes sales not listed in Incline Village MLS and late December contracts not yet closed (approximately 7 pending sales).

SOLD (Removed from list)

400 Fairview – Bitterbrush #113, APN 126-294-10, Rec. 8/18/10, Washington Mutual, 7255 Baymeadows Way, Mailstop: JAXB2007, Jacksonville, FL 32256 – Sold for $275,000

851 College, APN 124-082-16, Rec. 9/30/10, California Bank & Trust/Vineyard Bank NA, 1900 Main St., Ste. 145, Irvine, CA 92614- Sold for $1.150,000

949 Harold – Montclair Villas #14, APN 131-180-14, Rec. 9/4/10 – Federal National Mortgage Assoc. FNMA c/o 400 Countrywide Way SV-35, Simi Valley, CA 93065 – Sold for $215,000

DEFAULT CANCELLED (Removed from list)

631 Village, APN 129-390-06, TS#10-06087-3NV, Rec. 10/18/10

831 Lakeshore, APN 122-181-55, TS#2010-12662, Rec. 10/14/10

820 Oriole – Royal Pines #56, APN 132-252-33, Rec. 10/6/10

NEW REOS:

862 Jeffrey, APN 125-244-04, TS#0946425WFRNV, Rec. 10/12/10 – Back to beneficiary, no recorded docs yet

360 Alder #3, APN 124-370-03, Rec. 9/30/10, Fed’l; National Mortgage Assoc., 888 E. Walnut, Pasadena, CA 91101

391 Willow #A, APN 124-020-04, Rec. 9/28/10, Wells Fargo Bank, 4101 Wiseman Blvd., San Antonio, TX 78251

NEW NODs:

806 Oriole – Village Court #1 , APN 132-290-01, TS#NV09005405-10-1, NOD Rec. 10/5/10

1311 Moritz, APN 126-460-14, TS#10-0062271, NOD Rec. 10/4/10

NEW NOTICES OF SALE:

887 S. Dyer, APN 124-083-33, TS#10-42172-WFR-NV, NOD Rec. 5/24/10 – TRUSTEES SALE SCHEDULED ON WED. 11/10/10 AT 11AM  (new to list)

120 Village – McCloud #134, APN 127-075-04, TS#10-41753-WFR-NV, NOD Rec. 5/21/10 – TRUSTEES SALE SCHEDULED ON MON. 11/8/10 AT 11AM

821 Geraldine, APN 125-223-24, TS#08-0103165, NOD Rec. 5/21/10 – TRUSTEES SALE SCHEDULED ON MON. 11/1/10 AT 11AM

335 Ski Way – Burgundy Hill #302, APN 126-172-05, TS#10-0059972, NOD Rec. 9/18/08, 1/21/09 & 5/19/10 – TRUSTEES SALE SCHEDULED ON MON. 11/1/10 AT 11AM

30 Somers Loop, Crystal Bay, APN 123-033-12, TS#10-0059757, NOD Rec. 5/18/10 – TRUSTEES SALE SCHEDULED ON THURS. 11/4/10 AT 11AM

949 Dana Ct. #10, APN 128-120-10, TS#10-31235-FF-NV, NOD Rec. 4/26/10 – TRUSTEES SALE SCHEDULED ON WED. 11/3/10 AT 11AM

837 Southwood – Creekside West #5, APN 127-120-05, TS#1276801-11, NOD Rec. 4/15/10 – TRUSTEES SALE SCHEDULED ON THURS. 11/4/10 AT 11AM

972 Fairway View Ct. #1, APN 131-440-05, TS#0035008197, NOD Rec. 4/13/09 & 4/7/10 – TRUSTEES SALE SCHEDULED ON MON. 11/15/10 AT 11AM

725 Golfers Pass, APN 128-243-14, TS#10-0040721, NOD Rec. 3/22/10 – TRUSTEES SALE POSTPONED UNTIL TUES. 11/23/10 AT 11AM

321 Ski Way – Mtn. Shadows #71, APN 126-110-13, TS#09-0173885, NOD Rec. 12/3/09 & 3/19/10 –  TRUSTEES SALE ON 10/6/10 CANCELLED

230 Wassou, Crystal Bay, APN 123-163-09, TS#10-0024233, NOD Rec.2/19/10 – TRUSTEES SALE SCHEDULED ON FRI. 11/5/10 AT 1PM

872 Tanager – Pinebrook #40, APN 132-560-23, TS#10-0003933, NODs Rec. 1/21/10 & 2/18/10  – TRUSTEES SALE ON 9/14/10 CANCELLED

831 Lakeshore, APN 122-181-55, TS#2010-12662, NOD Rec. 2/3/10 – TRUSTEES SALE ON 9/30/10 CANCELLED

400 Fairview – Bitterbrush #120, APN 126-295-12, TS#09-0181759, NOD Rec. 12/23/09 – TRUSTEES SALE ON 10/15/10 CANCELLED

1013 Galaxy, APN 125-411-20, TS#0934445FFNV, NOD Rec. 9/22/09 – TRUSTEES SALE POSTPONED UNTIL WED. 11/17/10 AT 11AM

837 Southwood – Creekside West #19, APN 127-120-19, TS#NV0955014-2, NOD Rec. 9/1/09 – TRUSTEES SALE POSTPONED UNTIL MON. 11/15/10 AT 11AM

910 Harold #C, APN 131-121-35, TS#09-44749-WFR-NV, NOD Rec. 7/2/09 – TRUSTEES SALE POSTPONED UNTIL FRI. 11/12/10 AT 11AM

1049 Tomahawk, APN 130-081-15, TS#NV-09-299746-CL, NOD Rec. 7/14/09 – TRUSTEES SALE ON 9/3/10  CANCELLED

806 Geraldine, APN 125-233-06, TS#134134NV, NOD Rec. 4/27/09 –TRUSTEES SALE POSTPONED UNTIL MON. 12/20/10 AT 11AM

225 Pinecone, APN 130-203-29, TS#133971NV, NOD Rec. 4/24/09 – TRUSTEES SALE ON 10/15/10 CANCELLED

978 Glenrock Dr. #59, APN 131-021-25, TS#132807NV, NOD Rec. 3/24/09 – TRUSTEES SALE SCHEDULED FOR FRI. 11/5/10 AT 11AM

If HE Says It Is Time To Buy a Home, BUY A HOME!.

August 25- September 1, 2010

Number of new escrows continues to climb- doubling the typical weekly average to 15 new pending sales, including one lakefront home with a gorgeous sandy beach a few properties down from Incline Beach, gutted and ready to completely remodel. Three other homes over $2M also went into contract this week.

8 New Listings
-  all under $1M
- no short sale/REO
7 New Sales Closed
- 2 short sale, 1 REO
- all under $600K
15 New Pending Listings
- 3 contracts over $2M
- 1 lakefront $11.5M

Current Market Activity
504 active listings-
dropped 10 from last wk
(234 homes, 191 condos,
54 PUD, 17 lots, 8 other)
62 pending sales
155 sales year-to-date