Incline Village Real Estate and Community News

July 14, 2019

The Housing Slowdown May Be Ending: What Buyers, Sellers Need to Know

The Housing Slowdown May Be Ending: What Buyers, Sellers Need to Know

The much discussed—and, in some quarters, much feared—housing slowdown may be coming to an end.

 

The real estate softening that began last summer, marked by a surge in homes hitting the market and fewer sales after years of crazy-high annual price growth, may show signs of reversing course by this fall, say housing experts. That's a boon for sellers, but not so much for buyers.

 

"I don't think we'll get back all the way to ... the frenzy we saw at the beginning of 2018," says Chief Economist Danielle Hale of realtor.com®. But "it's certainly a possibility that home sales and prices will pick up, especially if mortgage rates stay low."

 

Falling below 4% again. It's a big incentive for folks to purchase properties now before rates go back up. Just a single percentage point can add a significant amount to a monthly mortgage payment, and potentially tens of thousands of dollars over the life of a 30-year, fixed-rate mortgage. Rates went all the way down to 3.75% as of July 3, according to Freddie Mac.

Moreover, the number of homes available for sale is expected to decline again within the next few months, says Hale. That's because the growth in inventory is starting to slow, slipping from 2.9% annual growth in May to 2.8% in June, according to realtor.com data. Experts predict it will fall even further this year. When supply is low and demand is high, prices typically go up.

 

"We're not seeing as many new listings come up on the market," says Hale. That could be because homeowners looking to trade up to bigger, nicer residences can't find anything in their price range.

 

"It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we've ever seen," she explains.

 

Which parts of the country could see the biggest real estate gains?

If mortgage rates continue to stay low, higher-priced cities on the coasts could get the biggest boosts.

 

Cities such as San Francisco, Seattle, and San Jose, CA, have been among the areas most affected by the slowdown. Many buyers took a step back or were priced out of the market, forcing plenty of sellers who shot for the stars to reduce prices to score a sale. But lower rates could make buying a home a bit more affordable there.

 

"The slowdown definitely reversed in San Francisco," says Patrick Carlisle, chief marketing analyst for the San Francisco Bay Area at Compass. "San Francisco just hit new highs in both median house and median condo sales prices of $1.77 million and $1.3 million in June."

 

He attributes the turnaround to low mortgage rates, a strong stock market, and some big IPOs (e.g., Uber, Lyft, Slack, and Pinterest) in the area.

 

However, there's no telling what the future holds for these real estate markets.

 

"The markets are much hotter than they were in the second half of last year," says Carlisle. "But they were not as hot as they were in the spring of 2018, which was the hottest market in 18 years in the Bay Area."

 

Is the real estate market heating back up?

So is the nation heading back into a seller's market?

 

Prices are still at record highs. The median home list price hit an all-time high of $316,000 in June, according to the most recent realtor.com data.

 

And even with lower mortgage interest rates, fewer buyers are entering no-holds-barred bidding wars or paying whatever sellers are asking for their abodes.

 

"There's still plenty of pent-up demand from years of underbuilding and more millennials coming of age" and wanting a home of their own to raise their families in, says Hale. But "this year's buyers seem a little more patient. They're more willing to wait for a good property."

 

Fears that the economy could falter and another recession could begin later this year or next have many buyers on edge. Potential buyers want to be sure their jobs are safe.

 

"We're past the peak of the business cycle. ... [So economic] growth is going to slow down," says Hale. "When people are a little uncertain about what the economy is going to look like in the future, it’s harder for them to think about buying a home."

 

But much of the fate of the housing market relies on mortgage interest rates. If they stay low, buyers have more money to spend on homes. So prices have more room to rise.

 

"It's still going to be a good time to sell as prices are near record highs. And with mortgage rates staying low, that might bring in more buyers," Hale says.

Posted in Market Updates
July 10, 2019

Delinquency rates hit 20-year low

Delinquency rates hit 20-year low

| Jul 09, 2019

Home delinquency rates have reached a 20-year low, an indication that fewer homeowners are struggling to make mortgage payments than ever before, according to the latest CoreLogic data.

Nationwide, only 3.6 percent of homeowners fell into some sort of delinquency on their mortgages in April, down from 4 percent in March. Foreclosure rates, in which the government seizes one’s home due to inability to pay, are at 0.4 percent, down from 0.5 percent in April 2018.

Courtesy of CoreLogic

“Thanks to a 50-year low in unemployment, rising home prices and responsible underwriting, the U.S. overall delinquency rate is the lowest in more than 20 years,” Dr. Frank Nothaft, chief economist at CoreLogic, said in a prepared statement. “However, a number of metros that suffered a natural disaster or economic decline contradict this national trend.”

According to CoreLogic, a strong economy is contributing to record low delinquency rates — overall delinquency rates are at a 20-year low while serious delinquency rates (mortgage payments that are late by more than 90 days) are at a 14-year low.

Nonetheless, homeowners in areas ravaged by natural disasters are struggling more than others, including those who were impacted last year by wildfires near Chico in northern California, where delinquency rates spiked by 21 percent due in part to delayed payments as homeowners struggled to decide whether to repair damages, sell their property or do nothing.

Courtesy of CoreLogic

“The U.S. has experienced 16 consecutive months of falling overall delinquency rates, but it has not been a steady decline across all areas of the country,” said Frank Martell, president and CEO of CoreLogic, in a prepared statement. “Recent flooding in the Midwest could elevate delinquency rates in hard-hit areas, similar to what we see after a hurricane.”

Nationally, however, fewer people are struggling with mortgage payments on a monthly basis — a trend that, according to CoreLogic, is likely to continue.

Posted in Real Estate News
July 10, 2019

Realtor.com predicts market shift impacting buyers is on the way

Realtor.com predicts market shift impacting buyers is on the way

| Jul 09, 2019

A market shift that will impact buyers well into 2020 is likely on the way, according to realtor.com’s June 2019 trend report.

Total inventory grew 2.8 percent year-over-year, according to the study, but annual gains have softened throughout the year; the number of newly listed homes dropped 2.3 percent year-over-year in June.

If this trend continues, inventory growth is set to flatten over the next three months and could start to once again decline in October.

“It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen,” Danielle Hale, chief economist for realtor.com, said in a statement. “If the trend we’re seeing continues, overall inventory could near record lows by early next year.”

Declining inventory could lead to the return of bidding wars, stronger price appreciation and quicker home sales, according to the report.

“So far there’s been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows this winter,” Hale added.

While rates are historically low, they’re still higher than they were seven years ago when they reached their lowest point, at 3.3 percent for a 30-year-fixed-rate mortgage. Rates are higher than one-third of weekly rates seen over the last seven years, which means many homeowners have mortgage rates lower than today’s levels, according to the report.

Hale says that the reason why people aren’t putting their homes on the market is difficult to pinpoint. “It’s likely a combination of rate-lock, recently decreased consumer confidence and older generations choosing to age in place,” she added.

Consumer confidence fell 4.4 percent over the past year, signaling that potential homesellers are more worried about a possible recession or future economic growth, according to the report.

In the short term, the U.S. median listing price likely reached its high point for the year in June, at $316,000, according to realtor.com’s data. Prices usually peak in July, but the report notes that the likely high point came earlier in the year due to a mismatch of what’s available and what buyers want.

Posted in Market Updates
July 8, 2019

Weekly Market Report

 

Incline Village, NV 89451

Mon Jul 08 2019 
This week the median list price for Incline Village, NV 89451 is $1,535,000 with the market action index hovering around 25. This is less than last month's market action index of 27. Inventory has held steady at or around 37. 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

While prices have been at a plateau for a number of weeks, this is a Buyer’s market and the supply of homes listed has started growing relative to demand. This indicates that prices could easily resume a downward trend in conjunction with the MAI. Prices are unlikely to move significantly higher until there is a persistent upward shift in the MAI.

Real-Time Market Profile

Never miss important changes in the Incline Village market.
Median List Price   $1,535,000
Per Square Foot   $533
Days on Market   190
Price Decreased   35%
Price Increased   3%
Relisted   0%
Inventory   37
Median House Rent   $3,500
Most Expensive   $15,750,000
Least Expensive   $495,000
Market Action Index 
Slight Buyer's Advantage
  25
Avg 7-DayAvg 90-DayJan 2017May 2017Sep 2017Jan 2018May 2018Sep 2018Jan 2019May 2019$1.2M$1.3M$1.4M$1.5M$1.6M$1.7M$1.8MFriday, Dec 28, 2018● Avg 90-Day: $1,580,576

Prices in this zip code seem to have settled around a plateau. Look for a persistent down-shift 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.

Median Price Sq. Ft. Lot Size Beds Bath Age New Absorbed DOM
$5,445,000 5,550 0.25 - 0.5 acre 5 5 17 0 0 351
$3,200,000 5,337 0.25 - 0.5 acre 5 4 34 0 1 206
$1,325,000 2,704 0.25 - 0.5 acre 4 3 35 1 0 140
$707,000 1,801 6,500 - 8,000 sqft 3 2 44 2 1 77
Posted in Market Updates
July 8, 2019

Weekly Market Report

Incline Village, NV 89451

Mon Jul 08 2019 

This week the median list price for Incline Village, NV 89451 is $1,535,000 with the market action index hovering around 25. This is less than last month's market action index of 27. Inventory has held steady at or around 37. 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

100

0

25

Slight Buyer's Advantage

 

While prices have been at a plateau for a number of weeks, this is a Buyer’s market and the supply of homes listed has started growing relative to demand. This indicates that prices could easily resume a downward trend in conjunction with the MAI. Prices are unlikely to move significantly higher until there is a persistent upward shift in the MAI.

 

Real-Time Market Profile

Never miss important changes in the Incline Village market.

Median List Price

$1,535,000

Per Square Foot

$533

Days on Market

190

Price Decreased

35%

Price Increased

3%

Relisted

0%

Inventory

37

Median House Rent

$3,500

Most Expensive $15,750,000

Least Expensive $495,000

Market Action Index 

Slight Buyer's Advantage

25

Median List Price 

 Market Segments

Click and drag in the plot area to zoom in.

 

Avg 7-Day

Avg 90-Day

Jan 2017

May 2017

Sep 2017

Jan 2018

May 2018

Sep 2018

Jan 2019

May 2019

$1.2M

$1.3M

$1.4M

$1.5M

$1.6M

$1.7M

$1.8M

Prices in this zip code seem to have settled around a plateau. Look for a persistent down-shift 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.

 

Median Price Sq. Ft. Lot Size Beds Bath Age New Absorbed DOM

$5,445,000 5,550 0.25 - 0.5 acre 5 5 17 0 0 351

$3,200,000 5,337 0.25 - 0.5 acre 5 4 34 0 1 206

$1,325,000 2,704 0.25 - 0.5 acre 4 3 35 1 0 140

$707,000 1,801 6,500 - 8,000 sqft 3 2 44 2 1 77

 

Posted in Market Updates
July 2, 2019

Home price growth accelerates for first time in 14 months

Home price growth accelerates for first time in 14 months

| Jul 02, 2019

For the first time in 14 months, home price growth is accelerating.

 

Nationwide, home prices grew by 3.6 percent in May year-over-year and 0.9 percent from April, according to the latest data from CoreLogic. At 10.7 percent, Idaho had the highest growth rate out of all the states. Utah and South Dakota followed at 7.8 percent and 7.7 percent, respectively.

 

The growth can be attributed to a strong job market and decreased mortgage rates, according to CoreLogic,

 

 

Courtesy of CoreLogic

 

“Interest rates on fixed-rate mortgages fell by nearly one percentage point between November 2018 and this May,” said Dr. Frank Nothaft, chief economist at CoreLogic, in a prepared statement. “This has been a shot-in-the-arm for home sales. Sales gained momentum in May and annual home-price growth accelerated for the first time since March 2018.”

 

As a result, home price growth is on the rise. Last month, home prices grew by 3.6 percent year-over-year and 1 percent over the month. Despite many people’s hopes for a buyer’s market, CoreLogic predicts that home prices will see even steeper growth in the coming year — 0.8 percent by next month but 5.6 percent by May 2020.

 

 

Courtesy of CoreLogic

 

Due to years of consistent home price increases, many buyers are worried about their ability to afford a home. According to CoreLogic, 28 percent of homeowners are worried they won’t be able to afford buying a new home in the future. Only half are satisfied with the number of options available in their market while 40 percent believe they will have to relocate.

 

“The recent and forecasted acceleration in home prices is a good and bad thing at the same time,” said Frank Martell, president and CEO of CoreLogic, in a prepared statement. “Higher prices and a lack of affordable homes are two of the most challenging issues in housing today, and every buyer, seller and industry participant is being impacted.”

Posted in Real Estate News
July 1, 2019

Incline Village 4th of July Events

 

4th of July Events & Fireworks in Incline Village, Lake Tahoe

 

4th of JULY HOLIDAY EVENTS IN INCLINE VILLAGE

Here’s a list of 4th of July things to do with your family in Incline Village.  !

 

WEDNESDAY,

JULY 3rd

 

10:00 am ~ Flag Raising 

 

Hosted by Boy Scout Troop 37

 

Village

Green/South End

 

11:00

am ~ USAF Pave Hawk Landing and Static Display

 

Hosted

by USAF Rescue Wing and Incline Tahoe Foundation

 

Village

Green/North End

 

12:00 pm ~ Veterans Recognition Lunch

 

Hosted by Cornerstone Community Church

 

Aspen

Grove

 

4:00 pm – 7:00 pm ~ Beer & Brats

 

Hosted by Incline Tahoe Foundation and Incline Spirits

 

Aspen Grove

 

THURSDAY, JULY 4th

 

8:00 am – 12:00 pm ~ Vets Pancake Breakfast

 

Hosted by Incline Village/ Crystal Bay Veterans Club

 

Aspen Grove

 

12:00 pm ~ Rubber Duck Race

 

Hosted by Rotary Club of Incline Village

 

Third Creek

 

12:30 pm ~ Veterans Tribute

 

Hosted by Cornerstone Community Church

 

Incline Beach

 

1:00 pm USAF Training Mission

 

Organized by USAF Para Recue Team

 

Incline Beach

 

Dusk ~ Fireworks!

 

Organized by the Incline Village Crystal Bay Fireworks Coalition

 

Incline Beach* (Approximately

9:30 pm)

 

FRIDAY, JULY 5th

 

8:00 am – 12:00 pm ~ North Lake Tahoe Fire Protection District Free Pancake Breakfast

 

Hosted by the NLTFPD and Marge and Manny Sylvester

 

Station 11, 875 Tanager Street, Incline Village

 

8:00 pm ~ Flag Retirement Ceremony

 

Hosted by Boy Scout Troop 37

 

Village Green / North End

Posted in Community News
July 1, 2019

Economic Update

Mixed Messages ~ June 28, 2019

 

It's rare when all three home sales reports are published in the same week but when they are, the overall picture they paint is often about as clear as pond water. Existing sales were, for a change, pretty good, rising 2.5% from April, the first gain in three months. The sales of 5.34 million units, again failed to improve on an annual basis (down by 1.1%). Maybe we should call this a tradition; the last time existing sales were higher year-over-year was February 2018.
 
Pending sales also reversed course after declining slightly in April, posting a 1.1% gain, about what was expected given the low interest rates and slowing price appreciation. The Pending Home Sale Index remains stubbornly lower on an annual basis however, down 0.7% and scoring its 17th consecutive year-over-year loss.
 
The third, the report on new home sales in May, provided more fuel for the already hot discussions about the direction of the housing market. New sales had performed better than those for existing homes for much of the year, increasing in each of the first three months. April broke the streak and May followed suit. New homes sold at a seasonally adjusted annual rate of 626,000 units, a 7.8% downturn on top of the 6.9% loss in April. And, need we say, those sales were down year-over-year as well, by 3.7%.
 
While the number of new homes available for sale barely budged from the April total, dwindling sales did drive the monthly supply higher, from 5.9 months in April to 6.4 months. Prices slipped too; the median price of a home sold nationally in May was $308,000 compared to $316,700 a year earlier.
 
The West was especially hard hit. May's new home sales were almost 36% lower than the prior month and down 17% from May 2019. Pending sales were off 1.8% and 3.1% respectively. The region did manage a small monthly gain in existing home sales, but they were also off on an annual basis.
  
Moderation
 
While home prices are still increasing for home sales in general--moderation,according to a Case-Shiller spokesperson, is the word of the month. The S&P Case-Shiller National Index's monthly increase was higher in March than in February, typical at the start of the spring housing market, but the annual increase declined from 3.7% to 3.5%.
 
The Federal Housing Finance Agency's Home Price Index continues to show a faster rate of appreciation than others. It was up 0.4% in March reflecting annual gains of more than 5%.
 
And did you catch the change in Freddie's 30-year fixed-rate? Take a look below and call if you want to take advantage of the lowest interest rates since November 2016.
Posted in Market Updates
July 1, 2019

Weekly Market Report

Incline Village, NV 89451

Mon Jul 01 2019 

This week the median list price for Incline Village, NV 89451 is $1,771,500 with the market action index hovering around 24. This is less than last month's market action index of 27. Inventory has held steady at or around 36. 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

100

0

24

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

$1,771,500

Per Square Foot

$549

Days on Market

201

Price Decreased

28%

Price Increased

3%

Relisted

0%

Inventory

36

Median House Rent

$3,500

Most Expensive $15,750,000

Least Expensive $495,000

Market Action Index 

 

Prices in this zip code seem to have settled around a plateau. Look for a persistent down-shift 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.

 

Median Price Sq. Ft. Lot Size Beds Bath Age New Absorbed DOM

$5,445,000 5,951 0.5 - 1 acre 5 5 17 1 0 348

$3,250,000 4,896 0.25 - 0.5 acre 5 4 32 2 0 208

$1,425,000 2,834 0.25 - 0.5 acre 4 3 35 0 1 160

$689,000 1,776 4,500 - 6,500 sqft 3 2 48 2 0 90

 

Posted in Market Updates
June 26, 2019

Rafting the Truckee River Opens Today!

Both Family-Friendly and Adult Fun

With the Truckee River controlled by the dam, we are always waiting for news from the water master of when the water levels and flow will be ideal to open the river to rafting. And TODAY IS THE DAY! 

 

The Truckee River float is a must do in Tahoe. Begin your leisurely float in Tahoe City, along a peaceful stretch of the Truckee River, ending at the River Ranch Restaurant. This self-guided raft trip on commercial grade rafts will floats you through tranquil stretches of scenic meadows, mountains and small rapids. The experience takes approximately 2-3 hours and is fun for all ages (2 years and up). Bring a small cooler with snacks and drinks (please no styrofoam or glass), and enjoy the day. Book your stay and head to Tahoe for some river FUN!

Posted in Community News