Q1-Q3, 2020 Incline Village & Crystal Bay Real Estate Market
Is 2020 going to be the best year ever in terms of the real estate market?
The current real estate trends say it should be!
If you are staying on top of what is happening in the Incline Village & Crystal Bay market, then you know now is one of the best times in recent history for residential real estate!
The Impact of Covid-19
It goes without saying that 2020 has been quite an extraordinary year. With the outbreak of Covid-19, very little of our world has been left unchanged, and even less remains certain going forward. This can also be said of our real estate market here in Incline Village and Crystal Bay.
Our market has seen unprecedented increases in property prices, sales, and total sales volume across all categories and neighborhoods. We have had to expand our graphs to capture the massive uptick in all metrics for the first time! For example,
Lakeshore and its two nearest competitors will all surpass $300 million in total sales this year, while in 2019, only Lakeshore Realty even approached $200 Million!
What is Driving Demand?
We were already seeing a steady influx of buyers leaving California’s high-tax environment in favor of Nevada and specifically the Nevada side of Lake Tahoe. With the outbreak of Covid-19 and other uncertainties, the typically financially dominated decision process has become an emotional one. We are seeing a demographic shift in our area as more families with children leave California’s cities seeking safety, stability, and a less congested lifestyle. The ability to work remotely has made it possible for many to live anywhere they please, making our area particularly appealing to a broad, new category of potential buyers.
What Does The Future Hold?
Due to the lack of supply in our market and the continued demand, we expect values to increase going forward. Now that we have nine months’ worth of sales data, we have uncovered a few trends we can lean on to give us a better view looking ahead. Our market goes through a yearly, seasonal cycle and this year will be no different. New listings and sales typically spike in summer when there are more tourists and potential buyers in the area along with the warmer weather. Once we get into October and the temperatures dip, listings and sales follow suit until around April or May.
Second, lending has been strong and shows no signs of changing. Buyers with loans are more qualified than ever and with the interest rates remaining low, the risk of default is slim. This counters any fears of another housing crash based on foreclosures and makes a case for an increasing market for the foreseeable future. Even if a recession hits, there should be vastly fewer defaults and foreclosures, which would stop any significant decline in values as we saw in 2008-2009.
Third, scarcity dominates any market’s values, and Incline Village and Crystal Bay are no different. With only a handful of buildable lots left available, our area’s property is as scarce as it has ever been. Even when sales are declining in other markets, Lake Tahoe’s property will always be inherently more valuable than property in other areas. Access to the lake, our incredible amenities, and the less-congested lifestyle has and still will create a strong demand for our market for the foreseeable future.
Incline Village & Crystal Bay Market Reports
1st Quarter 2020
2nd Quarter 2020
3rd Quarter 2020
Year End 2020
1st Quarter 2019
2nd Quarter 2019
3rd Quarter 2019
4th Quarter 2019