Incline Village & Crystal Bay Real Estate
The first quarter of 2017 has seen a few surprises in our real estate market that most were not expecting. The biggest surprise came in the form of the lowest inventory of homes for sale in over 20 years! The winter months typically see a decrease in active listings and new listings are expected as the weather warms. However, with the increase in interest rates and the lack of homes for sale, buyers may have a tough time this summer.
The lack of inventory can likely be explained by high home prices and the rise in interest rates. Sellers are reluctant to list their homes because they may not be able to “trade up” and are opting to gain more equity in their home in order to afford their next purchase. This gap between buyer and seller expectations may lead to less single family homes being sold this year compared to 2016. Further proof of this is the fact that the median home price actually dropped by 13% this year in Incline Village and Crystal Bay, bucking the national trend.
With a median list price of over $1.5 million for single family homes, many buyers are forced to re-assess their options. This is likely responsible for the increase in sales for condominiums in our area. Condo’s represent a more affordable option for home ownership in Incline Village and Crystal Bay and they are seemingly flying off the shelves. Inventory remains low, but with a median price of $395,000 condos are still accessible to a large portion of buyers. We expect to see steady sales for condo’s through the summer filling the gap of sales left by the more expensive single family homes.
The next few months will tell us much about the direction of the market in general. An increase in inventory will provide more competition which would in turn stabilize prices. But if the listing count remains low, we will stay in a “sellers market”, making buying a home a difficult challenge this summer.
Take a look at the charts below for more information on the Real Estate market for Incline Village and Crystal Bay. In this kind of market, it pays to work with a true professional to navigate the home buying and selling process. Don’t hesitate to reach out and speak with one of our experienced agents today!