The average price of a single famly home in Incline Village, Nevada, jumped 21% to $1,569,000 in the second quarter of 2007 over the same period last year. The median price was up 11% to $1,2000.
Sales volume increased 35%, as 39 homes sold this quarter compared to just 29 the same period last year. Although sales volume is still down from the 2nd quarter 2004 and 2005, where nearly 70 homes sold, this is a dramatic increase, year over year.
Higher end homes are outpacing the low end market, as nine homes sold for more than $2 million this quarter, up from only four the same period last year and the average days on market dropped from 187 second quarter last year to 180 in this quarter.
Larger homes are also the top sellers, as the square footage jumped from 2,765 last year second quarter to 3,089 this year. More homes sold in Lake View subdivision over any other area in Incline Village, totalling 9 of the 39 sales. Last year, most of the sales were concentrated near the Championship Golf Course and Upper Tyner areas.
Another interesting statistic is the broadening gap between list and sale prices. The past two years, second quarter list price was 7% over sales prices, and only 5% the year before that. List prices were 9% higher than sales prices this quarter, yet Incline home sales are at highest price point ever in the second quarter.
The new Incline Village market data weighs significantly on the home sales front, flying in the face of most markets around the country. Local real estate salesmen have speculated that the higher end market has begun to move, while a large inventory of moderate to low priced homes still remain “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 low point in 2006, where home sales dipped slightly, but the overall market including condo sales actually grew 8% in median sales. The proximity of Tahoe’s four season resort community is more of a draw than ever in today’s climate of rising gas prices.
The advance in higher-end sales before low priced homes is a unique scenario; usually, a market rebound begins at the bottom, as bargain hunters have lifted the low-end sales, traditionally. Perhaps the percieved value is found in the lakeshore, lake view and other desirable homes, and buyers are getting back into the market knowing the most desirable real estate is now very reasonably priced.
Mark Buergin, CA & NV Broker, Chase International states “Despite the media’s generalized coverage on the decline in home sales, the high end real estate market is strong in many areas. Technology markets are doing well, and this is translating into more home buying up at Lake Tahoe. ” When asked his thoughts on the growth of the high end market, Mark contemplated “Contrarians often lead the turn-around in equity markets, buying when the masses continue to sell. In the current real estate climate, we may be seeing a flight to quality of the highest sort. Wealthy home buyers are looking for “bargains”, and this translates into lakefront homes and estates with panoramic views, leaving much of the lower market inventory untouched.”
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. Buying a home in a prime lakeside neigborhood for $1.5 million in today’s market, may look like a “steal” five years from now, when a growing home-buying population competes for a shrinking pool.
Incline Village is still a reasonable proposition for many second homeowners compared to other resort areas. The proximity to a huge urban population along with the number of ski resorts, the draw of the lake, and a broad variety of outdoor recreational opportunities continue to fuel this strong real estate market.
Copyright 2007 Tahoe Homes