The real estate landscape on the Nevada side of North Lake Tahoe has been steadily progressing in the first quarter of 2024. In Incline Village and Crystal Bay, a total of 49 property transactions have been finalized during these initial three months, marking a significant increase compared to the 26 sales recorded during the same period last year. This remarkable surge of 88% in sales volume typically signals an active summer season ahead.
However, inventory levels are currently lower than historical norms. Presently, only 79 properties, including houses, condos, and freestanding condos, are listed for sale on the Incline Village MLS. While a shortage in supply might typically hinder sales growth, this hasn't been the case in 2024. Buyers are readily seizing reasonably priced properties in desirable locations, even with fewer new listings entering the market.
Real estate transactions play a pivotal role in the local economy of Incline Village and Crystal Bay. Increased property turnover benefits various service providers such as title companies, lenders, home inspectors, and contractors. Moreover, the money spent within the community stimulates local businesses, including restaurants and retail establishments.
Comparing this year's statistics with previous years reveals substantial differences. For instance, in Q1 of 2016, before the onset of the pandemic, there were significantly more homes, condos, and Planned Unit Developments (PUDs) available for sale. Factors like low-interest rates and an influx of full-time residents are contributing to the present tightness in the market.
Looking ahead, neighborhoods like Millcreek, Lakeview Sub, and Championship Golf Course are anticipated to maintain high property prices due to robust demand. With less than two months' worth of homes listed for sale on the Incline Village MLS, demand is expected to surpass supply for the foreseeable future. Properties that are overpriced or require extensive renovations may linger on the market and undergo price reductions.
Conversely, attention is shifting towards the Woods subdivision. Despite its elevated location, it's emerging as a sought-after destination for individuals seeking smaller, single-level homes that offer renovation potential without exorbitant costs. Opportunities for favorable deals remain available for those willing to invest effort. Currently, there are only 40 homes, 33 condos, and 6 PUDs actively listed in the subdivision.
In terms of condos, an influx of new listings is anticipated in the coming months. However, this may not necessarily translate into a surge in sales. Certain condo complexes in Incline Village pose challenges for buyers due to their ineligibility for standard financing. Consequently, an increase in "cash-only" transactions, akin to those observed in places like McCloud or Mountain Shadows, may occur.
Regarding single-family homes, inventory levels have fluctuated over the past year. Of the 23 houses sold in 2024 thus far, 13 boasted some form of lake view, indicating heightened interest in lakefront properties this year. Nonetheless, homeowners may encounter insurance-related uncertainties, particularly with insurers like Farmers discontinuing policies.
Only time will unveil the trajectory of the real estate market for the remainder of 2024. Nonetheless, for prospective sellers contemplating listing their properties, seizing the opportunity to do so early in the spring season may yield optimal prices.
