Written by Mary Jurkonis with Dickson Realty

For some people, the silver lining to the COVID-19 pandemic has been the opportunity to work from anywhere, and we are seeing this new flexibility reflected in the Incline Village real estate market.

More people want to move to Lake Tahoe and enjoy the year-round recreation it offers while also working remotely. Think about it—you could take a Zoom call in the morning and a hike or ski-break in the afternoon. Tahoe offers people a resort lifestyle even when they’re not on vacation. 

In Lake Tahoe, Incline Village is unique in that it is on the Nevada side of the lake and offers full-time residents the tax benefits of being part of the Silver State.

Incline Village Real Estate Market: More Active Than Ever

With a combination of low interest rates, low inventory, and high demand, the Incline Village real estate market closed off a record-breaking Q3 in 2020 and saw that momentum carry into the first months of Q4 as well. 

In Q3, we saw a more than 266% increase in closed sales month over month and a more than 132% increase year over year.

Incline Village real estate - Closed sales - Q3 2020

Going into November 2020, the market continued strong and saw 100% increase in closed sales from the previous year. While sales decreased compared to Q3, this is in line with our usual expectations for real estate sales during this time of year.

Incline Village real estate - Closed sales November 2020

Of the homes that sold, sellers received at least more than 98 percent of their asking price. 

Incline Village real estate - Percent of ask received November 2020

In November 2020, the median sold price increased to $1.723 million, a 20.5% increase from October 2020, and a remarkable 60.3% increase year over year.

At the same time, the inventory in the market decreased by more than 72.5% year over year. In November 2019, the Incline market absorption rate was 8.5 months, which is the number of months it would take to sell through all the available inventory at the current sales rate. In November 2020, that number dropped to 2.3 months. This level of inventory is firmly the seller’s favor, making it a great time to sell with little competition in many neighborhoods. Five to six months of inventory is considered to be a balanced market, while more than 6 months is considered a buyer’s market.

Incline Village real estate - Absorption months of inventory November 2020

A significant driver of this activity is people who, up until recently, were required to work from or commute to the Bay Area for their jobs. With more companies implementing remote work for the foreseeable future, many of the California residents are looking to Incline Village for its lifestyle, tax benefits and housing prices. In some cases, these individuals rented housing in Lake Tahoe for a short period of time at the beginning of the pandemic and decided to make the move more permanent in recent months. In addition, record-low interest rates are making mortgages more affordable and allowing people to stretch their budgets.

Advice for Buying and Selling Real Estate in Incline Village

While the real estate market typically slows down for the fourth quarter of the year and into the first quarter of the upcoming year, the pandemic may disrupt this trend. As people retreat to Lake Tahoe for winter ski trips and holiday vacations, they often consider buying a primary or second home in the market. This can increase demand as supply dips because homeowners are less likely to sell and move in the middle of the snowy months. So, if you’re looking to buy or sell a home in the Incline Village area, here are some recommendations to consider:

  • Sellers: If you are considering moving elsewhere and want to list your Incline Village property, now is the time to do it. This level of demand will likely continue through 2021, and a decrease in supply during the holidays will help you get the best price possible for your home.
  • Buyers: If you want to buy a home in the Incline Village market, now is the time. Don’t wait for prices to level off or decline, and don’t wait for the perfect turnkey, new-construction property. Many of Incline Village’s homes are situated in excellent neighborhoods that are a bit older and may need some updating to be tailored to your tastes and needs.
Posted by Jeff Sallan on
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