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Incline Village Real Estate

Jeffrey Corman

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Weekly Incline Village Market Condition Report

by Jeffrey Corman

Incline Village, NV

Mon Feb 18 2019 
This week the median list price for Incline Village, NV is $1,672,500 with the market action index hovering around 27. This is an increase over last month's market action index of 24. Inventory has held steady at or around 30. Click here to stay informed with the Incline Village market!

Market Action Index

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller's Market conditions. Below 30, conditions favor the buyer.

 Today
 Last Month
100027

Slight Buyer's Advantage

Home sales have begun exceeding new inventory. This is a Buyer’s market so prices are not yet moving higher as excess inventory is consumed. If the tightening continues and the market moves into the Seller’s zone, we may see upward pressure on pricing.

Real-Time Market Profile

Never miss important changes in the Incline Village market.
Median List Price
$1,672,500
Per Square Foot
$562
Days on Market
203
Price Decreased
20%
Price Increased
3%
Relisted
3%
Inventory
30
Median House Rent
$3,000
Most Expensive   $10,500,000
Least Expensive   $499,000
Market Action Index 
Slight Buyer's Advantage
27
Avg 7-DayAvg 90-DayFeb 2016Jul 2016Nov 2016Mar 2017Jul 2017Nov 2017Mar 2018Jul 2018Nov 2018$1.3M$1.4M$1.5M$1.6M$1.7M$1.8M

The market is hovering around this plateau. Look for a persistent change in the Market Action Index before we see prices deviate from these levels.

Nevada Tax Advantages

by Jeffrey Corman
Relocating to Nevada

Individuals and businesses are motivated to relocate to Nevada due to the fact that there is no state-imposed income tax. In order to take advantage of the income tax savings, several factors come into play. Evaluate your personal and corporate tax climate and use the following information to evaluate your potential for the Nevada tax savings.

Nevada tax benefits & advantages

In order to take advantage of Nevada’s tax hospitality, a taxpayer must make Nevada its principal place of residence, i.e. your primary home. Residency is the single most important factor in gaining Nevada’s tax advantages.

A “close connection test” is implemented and must be passed in order for a taxpayer to establish state residency. The “close connection test” identifies if Nevada is the state in which a taxpayer has the closest social and business contacts, and more. A corporation organized and domiciled in Nevada can also significantly reduce its state tax burden by shifting its corporate level of activity to the state Nevada.

Owning real estate in the state of Nevada is the key factor when considering tax advantages. To learn more about the potential tax advantages of Nevada residency for yourself of your business, visit tax.nv.gov. Contact an experienced CPA or financial advisor to plan and implement a successful change in residency.

Top reasons to Incorporate in Nevada

• No Corporate Income Tax
• No Taxes on Corporate Shares
• No Franchise Tax
• No Personal Income Tax
• Nominal Annual Fees
• Nevada corporations may purchase, hold, sell,
or trans shares of its own stock
• Competitive Sales and Property Tax Rates

• For capital, services, personal property, or
real estate, including leases and options.
The directors may determine the value of
any of these transactions. and their decision
is final.
• No Franchise Tax on Income
• No Inheritance or Gift Tax
• No Unitary Tax
• No Estate Tax

 

Click Here to Download PDF Flyer

 

Your Weekly Incline Village Market Report

by Jeffrey Corman

Incline Village, NV

Mon Feb 04 2019 
This week the median list price for Incline Village, NV is $1,645,000 with the market action index hovering around 25. This is about the same as last month's market action index of 25. Inventory has held steady at or around 30. Click here to stay informed with the Incline Village market!

Market Action Index

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller's Market conditions. Below 30, conditions favor the buyer.

 Today
 Last Month
100025

Slight Buyer's Advantage

Home sales have begun exceeding new inventory. This is a Buyer’s market so prices are not yet moving higher as excess inventory is consumed. If the tightening continues and the market moves into the Seller’s zone, we may see upward pressure on pricing.

Real-Time Market Profile

Never miss important changes in the Incline Village market.
Median List Price
$1,645,000
Per Square Foot
$567
Days on Market
192
Price Decreased
13%
Price Increased
3%
Relisted
0%
Inventory
30
Median House Rent
$3,000
Most Expensive   $10,500,000
Least Expensive   $499,000
Market Action Index 
Slight Buyer's Advantage
25
Avg 7-DayAvg 90-DayFeb 2016Jun 2016Oct 2016Feb 2017Jun 2017Oct 2017Feb 2018Jun 2018Oct 2018Feb 2019$1.3M$1.4M$1.5M$1.6M$1.7M$1.8M

The market is hovering around this plateau. Look for a persistent change in the Market Action Index before we see prices deviate from these levels.

Market Segments

Each segment below represents approximately 25% of the market ordered by price.

Misplaced Worries Over Quantitative Tightening

by Jeffrey Corman
MARKETS AND ECONOMY

Misplaced Worries Over Quantitative Tightening

As the Fed slowly removes accommodative monetary conditions that were put in place during the last recession, there’s some concern about tightening financial conditions spurring a new downturn. But financial conditions and monetary conditions aren’t the same, and the Fed’s recent actions shouldn’t be seen as restrictive.
JIM GLASSMAN, HEAD ECONOMIST, COMMERCIAL BANKING , JP MORGAN
JANUARY 23, 2019

As the top of the business cycle approaches, every action from the Federal Reserve seems to provoke anxiety. After all, the US economy has never held full employment for long until the start of the next downturn. Periods of strength always threaten to generate an overheating labor market, spiraling inflation, or financial imbalances that will eventually tip the economy into a new recession.

Every step of interest rate normalization has been subject to intense debate, with critics questioning whether the expansion can endure higher borrowing costs. However, December’s hike merely pushed short-term rates into a 2.25 to 2.5 percent window, barely ahead of inflation. Unless the true equilibrium for real interest rates in an economy operating near full capacity is negative, rates have yet to move into restrictive territory.

Worries Over Stealth Tightening

Interest rates are not the sole lever for making monetary policy. During the early years of the recovery, the Fed turned to quantitative easing to hasten the recovery. By purchasing large volumes of Treasurys and mortgage-backed securities, the Fed was able to push down long-term borrowing costs and spur a wave of private-sector capital investment. Now that the economy is back on solid footing, the Fed has begun shrinking its balance sheet, allowing its holdings to mature and effectively releasing a new flow of securities onto the open market.

This decision has led to worries that balance sheet normalization represents a stealth mechanism for monetary tightening. After all, quantitative easing brought long-term borrowing costs down, so it’s logical to think its reversal could push interest rates above their natural equilibrium. If rising yields cause monetary conditions to turn restrictive, higher borrowing costs could cut off capital investment and dampen economic activity.

Yields Remain Tranquil

The Fed’s balance sheet is shrinking by some $50 billion monthly, yet the market shows no signs of tightening. A year after the runoff of excess reserves began, the 10-year Treasury yield—often used as a proxy for long-term interest rates—has climbed to just 2.7 percent, less than one percentage point above inflation expectations. Despite the added flow of securities coming onto the market, long-term yields likely rest below their true equilibrium, which has historically held approximately two percentage points ahead of inflation.

It appears that the yearlong climb in yields that began in late 2016 was only partly driven by the Fed’s announcement of balance sheet normalization. Investors were likely also responding to the presidential election results, which brought the hope of tax relief, fiscal stimulus and business-friendly regulatory reforms.

Reducing Idle Liquidity

As the Fed’s balance sheet shrinks, the excess liquid reserves held at the central bank are also declining. This has led to concerns that monetary conditions will tighten as banks no longer have excess reserves to draw upon. However, just as hyperinflation did not follow the creation of these excess idle reserves, their removal should have little impact on monetary conditions for the broader economy. If a liquidity crunch were brewing, it would first become visible in steadily rising bond yields—a sign that is markedly absent today.

Why Aren’t Yields Rising?

No single factor can fully explain yields’ stability through the first year of balance sheet normalization. Central banks abroad are still engaged in quantitative easing, which may be suppressing yields for high-grade debt in the US. The 10-year yield on Japanese Government Bonds sits at virtually zero, and German bunds have climbed barely above 0.25 percent. This may be encouraging investment in US government debt, which is at least ahead of inflation.

However, overseas investors have purchased relatively few Treasurys in recent years—since 2014, international investment in US government bonds has been flat. Instead, foreign capital has been flowing into stocks and corporate bonds. Since 2014, foreign investors have acquired $3.5 trillion in US equities and another $1 trillion in corporate debt and dollar-denominated money market securities. Foreign inflows may have an indirect role in suppressing bond yields, but it doesn’t appear that the US bond market is serving as a refuge from quantitative easing programs in Europe and Japan.

Demand for government debt is broadly spread across the domestic market. Banks and investment funds have purchased $2 trillion of Treasurys since 2014; households and hedge funds have added another $1 trillion of government debt to their portfolios over this period. These purchases may have been driven by higher capital requirements for lending institutions, as well as investors fleeing volatility in the stock market.

Monetary Versus Financial Conditions

The debate over the Fed’s decisions often conflates monetary policy with the broader financial conditions facing consumers. The Fed’s ability to set short-term interest rates gives it great power over monetary conditions, but financial conditions—and the availability of credit to private borrowers—is a function of the free market. Issues like the impact of growing student debt are fundamentally endogenous; they can be affected by policymakers’ decisions, but market forces ultimately control the movement of capital within the private sector.

As the economy strengthens, financial conditions may grow tighter in an absolute sense. But that will reflect strengthening demand for credit as promising opportunities for investors proliferate. The Fed’s mandate is to maintain price stability, not to control the shifting balance of financial conditions as the top of the business cycle arrives.

Weekly Incline Village Market Condition Report

by Jeffrey Corman

Incline Village, NV 89451

Mon Jan 28 2019 
This week the median list price for Incline Village, NV 89451 is $1,595,000 with the market action index hovering around 23. This is an increase over last month's market action index of 22. Inventory has held steady at or around 31. Click here to stay informed with the Incline Village market!

Market Action Index

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller's Market conditions. Below 30, conditions favor the buyer.

 Today
 Last Month
100023

Slight Buyer's Advantage

The Market Action Index has been trending lower for several weeks while prices have remained relatively stable. If inventory continues to grow relative to demand however, it is likely that we will see downward pressure on pricing.

Real-Time Market Profile

Never miss important changes in the Incline Village market.
Median List Price
$1,595,000
Per Square Foot
$562
Days on Market
184
Price Decreased
16%
Price Increased
3%
Relisted
0%
Inventory
31
Median House Rent
$3,000
Most Expensive   $10,500,000
Least Expensive   $499,000
Market Action Index 
Slight Buyer's Advantage
23
Avg 7-DayAvg 90-DayFeb 2016Jun 2016Oct 2016Feb 2017Jun 2017Oct 2017Feb 2018Jun 2018Oct 2018Jan 2019$1.2M$1.3M$1.4M$1.5M$1.6M$1.7M$1.8M

Again this week we see prices in this zip code remain roughly at the level they’ve been for several weeks. Since we’re significantly below the top of the market, look for a persistent up-shift in the Market Action Index before we see prices move from these levels.

Market Segments

Each segment below represents approximately 25% of the market ordered by price.

 
 

Blindsided ~ January 25, 2019

by Jeffrey Corman
Blindsided ~ January 25, 2019
  
Existing home sales were approaching the end of the year on a promising note. Monthly data from the National Association of Realtors had shown sales slipping in May, June, July.... Then in October there was an unexpected rebound, not a big one, an increase of 1.4% from September, but still a welcome relief. The November report bestowed another 1.9% gain; sales seemed to be getting back on a roll. Of course, by then, year-over-year sales were down 7.0%, the lowest in 7-1/2 years.
 
Analysts were expecting a slight decline in December. Those sales would have reflected houses put under agreement primarily in late October and November when interest rates had peaked, but the report actual blindsided everyone--a 6.4% decline. This further widened the year-over-year deficit, of course. December finished up 10.3% behind the same month last year; 4.99 million annualized sales compared to 5.56 million.
 
The bad news didn't stop there. Sales were down in every region--from 1.9% in the West (and 15% year-over-year) to 11.2% in the Midwest. And despite flagging sales, the for-sale inventory still shrunk, from 1.74 million homes and a 3.7-month supply in October to 1.55 million and 3.2 months.
 
NAR Chief Economist Lawrence Yun told CNBC's "Nightly Business Report" that such a huge change is usually due to some big news "like an expiring tax credit or a change in consumer protection laws." This one he pinned on buyers' price concerns as well as the November rate peak. Elsewhere he also faulted the continuing lack of inventory.
 
Joel Kan, Associate Vice President of the Mortgage Bankers Association, had a slightly more upbeat outlook. He acknowledged the current affordability challenges but added "We do expect this to dissipate slowly, as there have been more signs of moderating home-price growth and accelerating wage growth, which should help bridge the affordability gap."
    
Bucking The Trend
 
While we have seen appreciation moderating in most recent home price reports, those from the Federal Housing Finance Agency's (FHFA's) have been remarkably stable. With the exception of September, month-over-month national price gains have held steady at 0.4% since May. That held true for this week's report for November as well. The year-over-year increase was 5.8%, up 0.1 point from October.
 
Regional indices are a different matter. Four of the nine census divisions posted monthly increases in the 1.0% vicinity but three were in negative territory including the Pacific division with the largest decline, 0.8%. Further, the annual price increase in November was 4.9%, only slightly more than half of the annual gain in November 2017 of 8.9%.
 
Finally, giving new meaning to the word "stability," the 30-year fixed-rate remains at 4.45% for the third straight week.
Key Indicators
FHFA Home Prices Nov
Up 0.4% MoM
Up 5.8% YoY
 
Leading Indicators Dec
Down 0.1%
[Prior up 0.2%]
 
Coming Indicators
 
Friday, January 25
New Home Sales
 
Tuesday, January 29
FOMC Meeting Begins
S&P Case-Shiller Price Indices
Consumer Confidence
 
Wednesday, January 30
GDP
Pending Home Sales
 
 
Gold (Monex)
$1,275.00/ounce down
 
Crude Oil (Brent)
$61.14/brl down
 
U.S. Dollar to...
Euro                      0.8820 up
Japanese Yen  109.7200 up
Chinese Yuan      6.7934 up
Canadian Dollar  1.3358 up
Mexican Peso    19.0850 up
 
6-mo T-Bill Yield
    2.51%
Up 2 bps  
10-yr T-Note Yield 2.76%
Up 3 bps
 
11th Dist Cost of Funds, 12/31
1.060 down 19 bps
 
Freddie Mac 30-Year Avg Rate 1/24
4.45% unchg
 
MBA - Mortgage Applications
Index Week ending 1/18
Overall           
Down 2.7%
[Prior week up 13.5%]
Purchase Money Loans
Down 2.0%
[Prior week up 9.0%]
Refinancing Loans
Down 5.0%
[Prior week up 19.0%]
 
Jobless Claims 1/19
199,000 new claims
[Prior week 212,000 rev]
4-week moving avg 215,000 down
 
Existing Home Sales Dec
Down 6.4% MoM
Down 10.3% YoY
4.99M units

A Full Week of Weather Left Us with Phenomenal Skiing!

by Jeffrey Corman

A Full Week of Weather Left Us with Phenomenal Skiing!

Sugar Bowl Resort 1.21.19

Skiers today were blessed with a true Sierra powder day with a fresh 20" of flulffy snow up high, making the 7-day storm total nearly 8 feet of snow. Needless to say, we have a great base of snow at this point, and the mountains are filling in beautifully. Around town, the scenery sparkles, the snowmen are taller than humans, and the sled hills are filled with the sound of laughter. With a week of sunshine in the forecast, travel will be easy - making this the perfect time to visit our winter wonderland.

Snow Day! 1.17.19

Truckee 1.19.19

Diamond Peak 1.18.

Homewood Mountain Resort 1.19.19

Tahoe City 1.18.19 Photo Credit: Ben Arnst, shared by @SquawAlpine

   
 
 
 
 

Your Weekly Incline Village Market Report

by Jeffrey Corman

Incline Village, NV

Mon Jan 21 2019 
This week the median list price for Incline Village, NV is $1,695,000 with the market action index hovering around 24. This is about the same as last month's market action index of 24. Inventory has held steady at or around 29. Click here to stay informed with the Incline Village market!

Market Action Index

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller's Market conditions. Below 30, conditions favor the buyer.

 Today
 Last Month
100024

Slight Buyer's Advantage

Home sales have begun exceeding new inventory. This is a Buyer’s market so prices are not yet moving higher as excess inventory is consumed. If the tightening continues and the market moves into the Seller’s zone, we may see upward pressure on pricing.

Real-Time Market Profile

Never miss important changes in the Incline Village market.
Median List Price
$1,695,000
Per Square Foot
$603
Days on Market
190
Price Decreased
14%
Price Increased
3%
Relisted
0%
Inventory
29
Median House Rent
$3,000
Most Expensive   $10,500,000
Least Expensive   $499,000
Market Action Index 
Slight Buyer's Advantage
24
Avg 7-DayAvg 90-DayJan 2016Jun 2016Oct 2016Feb 2017Jun 2017Oct 2017Feb 2018Jun 2018Oct 2018$1.3M$1.4M$1.5M$1.6M$1.7M$1.8M

The market is hovering around this plateau. Look for a persistent change in the Market Action Index before we see prices deviate from these levels.

Market Segments

Each segment below represents approximately 25% of the market ordered by price.

 

As Major Urban Real Estate Markets Cool, Lake Tahoe’s Resort Markets Thrive

2018 was a good year for Lake Tahoe, Truckee and the surrounding area real estate market. While major urban and suburban markets experienced a cool down fueled by buyer price exhaustion and supply factors that play into frenzied markets, Northern California and Nevada resort properties remained a popular investment.

The allure of the lake, California’s outdoor lifestyle and Nevada’s tax friendly climate continued to attract buyers and second homeowners across all price points while limited supply created bullish region-wide trends in pricing.

Image of 1170 Vivian, a lakefront home located in Incline Village.

Lake Tahoe waterfront properties featuring new construction, sandy beach, pier and buoys are selling within days of hitting the open market if not before. Pictured: 1170 Vivian, Incline Village $15,950,000. Courtesy: Sierra Sotheby’s International Realty

Lakefront

The regional lakefront market was a bright spot in 2018 with waterfront sales volume on Tahoe’s East Shore doubling from seven sales in 2017 to 14 in 2018.

Lake Tahoe’s North and West Shores generated 35 lakefront sales with eight transactions over $10 million and four sales topping $20 million. The highest priced lakefront sale was an aspirational $40 million property on the West Shore of Tahoe, set on more than nine secluded acres and complimented by an entertainment barn, a two-lane bowling alley, two guest homes, a tennis court, deep water pier, swim platform and boat lift.

Incline Village’s Lakeshore Boulevard boasted the second highest lakefront sale of the year fetching an impressive $36,500,000 in less than a week with multiple offers.

For buyers and sellers, “A premium is always paid for level lots with piers, and secured entitlements,” says Katherina Haug, a North Lake Tahoe-based real estate specialist with Sierra Sotheby’s International Realty. “Proper preparation prior to coming to the market is paramount to achieving full market value,” she adds.

Incline Village

At press time there were eight active and one pending lakefront homes priced up to $39 million in the Incline Village/Crystal Bay area according to Jeffrey Corman, an Incline Village-based agent with Sierra Sotheby’s International Realty. “We continue to see strong showing activity and quality offers on properties with highly sought-after amenities including new construction, sandy beach, pier and buoys which are all available with several properties currently listed.”

In 2017 average days on market for Incline Village lakefront homes was just over two years. In 2018, the listing period was closer to 10 months with a median price of $5.7 million. The median price for non-lakefront single-family homes in Incline Village was $1.2 million with an average of 224 days to sell, while more affordably priced condos were selling in 124 days on average with a median price of $540,000.

Image of a modern dining space inside 5710 Tiger Lily in Sugarbowl.

Newer homes with modern upgrades are in high demand with Lake Tahoe buyers. Pictured: 5710 Tiger Lily, Sugar Bowl, $3,790,000. Photo by Vance Fox.

East Shore: Glenbrook, Zephyr Cove, Stateline

While the lakefront market was strong in this region, single-family, non-lakefront sales volume was down by 18 percent combined with an 8 percent dip in median prices. A closer look at this sector reveals that Glenbrook and Zephyr Cove showed signs of cooling while Stateline showed significant double-digit gains in volume and pricing. These contrasting statistics are an example of why it’s important to contact a local real estate specialist to understand the full picture of what’s happening in a market of interest.

Truckee

Popular amenity-rich, luxury neighborhoods such as Martis Camp, Old Greenwood, and Schaffer’s Mill all reported gains in average sale price as volume continued on a steady pace with the prior year. Lahontan was a stand-out in terms of sales volume with 27 homes sold in 2018 as compared to 16 in 2017 with an average sold price of $2.34 million (a 1 percent increase over 2017).

In Truckee’s more modestly priced neighborhoods such as Sierra Meadows where the median home price is $540,000, homes were selling as quickly as 15 days on average. Tahoe Donner single-family homes sold in roughly 41 days with an average sale price of $772,000, a 6 percent increase over 2017. Sales volume for Tahoe Donner was down by 31 percent with 56 homes sold in 2018 versus 81 sold in 2017.

The highest priced sale in Truckee was $11,750,000 in the gated Martis Camp community where average sale price in 2018 was $5.25 million with an average of six months accumulated days on market. The lowest priced sale (excluding land transactions) was a Tahoe Donner studio condo that sold for $75,000.

South Lake Tahoe

Generally speaking, South Lake Tahoe homes were selling in roughly 100 days on average in 2018, which was only slightly faster than the prior year. Total non-lakefront sales volume in South Lake Tahoe was down by 7 percent, however, several niche markets such as the Tahoe Keys outpaced 2017 sales despite much ambiguity surrounding the short-term rental market.

“Inventory remains low, and demand stayed strong during the year,” said Amanda Adams, South Lake Tahoe real estate specialist with Sierra Sotheby’s International Realty. “Even with the short-term rental changes in certain neighborhoods, prices have continued to rise for almost the entire South Shore area throughout the year. There are still great opportunities for buyers and sellers in the current market conditions.”

The highest priced sale in South Lake Tahoe in 2018 brought in $5.5 million while the lowest price sale (not including land) was a non-lakefront condo that went for $70,000. The median home price for non-lakefront single-family homes was $466,500 while median lakefront home prices are still under $1 million for the area.

Aerial view of Lightening Ranch Road real estate in Washoe Valley, Nevada.

Continued price hikes coupled with a dip in sales volume suggests that demand continues to outpace inventory in many neighborhoods throughout Reno-Tahoe. Pictured: 38 W Lightening Ranch Road, Washoe Valley. Photo courtesy Sierra Sotheby’s International Realty.

Reno /Carson Valley

Sales volume for single-family homes in the Southwest Reno market was off by 11 percent in 2018 however, the average sales price was up by a solid 19 percent. The Northwest Foothills area saw 12 percent price gains, South Suburban prices went up 15 percent and South Meadows and Sparks each gained 13 percent. This trend suggests a continued gap in supply for the region.

Average days on market for Reno ranged from 70 days to five months depending on the neighborhood. Buyers in search of aggressively priced first homes or investment properties should be prepared to act quickly.

According to Randy Roesch, with Sierra Sotheby’s International Realty’s Reno office, “The higher end of the Reno market is much more balanced with certain top-tier price points even falling into a buyers market. Top-of-the-market buyers have plenty of inventory to choose from so sellers at this level need to price their homes competitively or be comfortable waiting to attract the right buyers,” says Roesch.

With an average sale price of $366,791, nearby Carson City stood out as a value-buy for Northern Nevada in 2018. Carson Valley markets including Gardnerville, Genoa and Minden all recorded a slow down in transactions coupled with an uptick in sales prices.

Plumas County

Encompassing an area of sleepy ranch neighborhoods and thriving golf course communities, Portola represents the highest concentration of sales activity for this region. With an average sale price of $158,665, Portola recorded 34 single-family homes sold in 2018 versus 33 in 2017. The Plumas Pines Golf Course area came in second in sales volume with 27 homes sold in 2018, a 35 percent uptick from 2017. Graeagle was a close third in volume with 23 sales and an average sale price of $503,500. The region continues to be popular with buyers who are looking for a quiet, wooded setting with both golf course amenities and mom-and-pop shops.

Sierra Foothills

Located just 40 minutes west of Truckee along Highway 20, the Sierra Foothills market did not show signs of buyer pull-back in 2018 with homes in both Nevada City and Grass Valley selling in fewer than 60 days on average with sale price ranging from $290,000 to $600,000 depending on the niche neighborhood. Most Sierra Foothills neighborhoods saw single digit price increases in 2018.

As interest rates continue to be a hot topic, second home/ resort markets remain fairly insulated from the effects of nominal rate hikes. And with winter off to a healthy start in the Sierra, we can anticipate another prosperous real estate climate in 2019 with a bustling and balanced market that benefits everyone.

The data in this report was collected via six regional multiple listings services. To see all pricing and sales volume for Reno, Lake Tahoe or surrounding areas broken down by a specific resort community or neighborhoods visit tahoemicroreports.com.

Year-End Blockbuster Report ~ January 11, 2019

by Jeffrey Corman
Year-End Blockbuster Report ~ January 11, 2019
  
The December Employment Situation report was a total blockbuster. The Bureau of Labor Statistics reported that 312,000 jobs were created during the month, the strongest showing since February 2017. Analysts had much lower expectations; theEconoday consensus of 180,000 was typical. There were also upward revisions to the previous two months' numbers including an additional 21,000 jobs added to the dismal November estimate of 155,000.
 
Construction was the big winner with 38,000 new jobs, which we can hope will translate into more new home construction, and wages rose 0.4% from November and 3.2% year over year, the best showing since last December and one of the highest of the recovery.
 
The unemployment rate ticked up from 3.7 to 3.9%, but this was also good news. It reflected an increase in those looking for work--that number climbed from 6.018 million to 6.294 million--many of whom were discouraged workers now returning to the hunt.
 
Fannie Mae Chief Economist Doug Duncan said the report "should help soothe fears of a marked slowdown in the economy." However, he also notes that it gives the Federal Reserve "more room to stick with its projected two rate hikes for this year."
    
Naughty & Nice
 
The stock market continued its volatility this week, but with nowhere near the wild swings it suffered over the holidays. The Dow has resumed an upward trend and at this very moment (subject of course to immediate change) has gained back about 400 points since January 1st.
 
As Wall Street settles down, investors tend to stop worrying about safety and return to stocks. Consequently, yields on Treasury notes and bonds have started to inch back up, but mortgage rates have not followed suit. Freddie Mac says this week's 30-year fixed-rate mortgage hit a nine-month low.
 
If you are in the market to buy a home, there is more good news in Black Knight's current Mortgage Monitor. While home prices are still rising, the company's Home Price Index is marking significantly smaller increases than this time last year. From annual growth of 6.7% in February, the rate of appreciation had dropped to 5.4% by October.
 
Growth has slowed in 33 states and 71 metro areas, and nowhere is this slowdown more apparent than in the West, especially California. Over the same period, annual growth in the state moderated from 10% to 4.9%. For the first time since the recovery began, California has slower appreciation than the nation as a whole.
Key Indicators
ISM Non-Mfg Index Dec
57.6
[Prior 60.7]
 
JOLTs Nov
6.888M Job Openings
[Prior 7.131M rev]
 
Coming Indicators
 
Friday, January 11
CPI
 
Wednesday, January 16
Retail Sales
Housing Market Index
 
Thursday, January 17
Residential Construction
 
 
Gold (Monex)
$1,292.00/ounce up
 
Crude Oil (Brent)
$61.44/brl up
 
U.S. Dollar to...
Euro                      0.8670 down
Japanese Yen  108.0800 up
Chinese Yuan      6.7841 down
Canadian Dollar  1.3219 down
Mexican Peso    19.2370 down
 
6-mo T-Bill Yield    2.52%
Up 1 bp  
10-yr T-Note Yield 2.74%
Up 9 bps
 
11th Dist Cost of Funds, 12/31
1.060 down 19 bps
 
Freddie Mac 30-Year
Avg Rate 1/10
4.45% down 6 bps
 
MBA - Mortgage Applications
Index Week ending 1/4
Overall           
Up 23.5%
[Prior week down 9.8%]
Purchase Money Loans
Up 17.0%
[Prior week down 8.0%]
Refinancing Loans
Up 35.0%
[Prior week down 12.0%]
 
Jobless Claims 1/5
216,000 new claims
[Prior week 233,000 rev]
4-week moving avg 221,750 up
 
Employment Situation Dec
312,000 New Jobs Created
[Prior 176,000 rev]
Unemployment Rate 3.9%

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Contact Information

Photo of Jeffrey Corman Real Estate
Jeffrey Corman
Engel & Völkers Incline Village
214 Village Blvd #3
Incline Village NV 89451
775-339-1144
775-832-4900 ext. 330