Mid-Year 2019 Market Update Incline Village & Crystal Bay Real Estate

Experience the Lakeshore Difference The first step to selling your home begins with choosing the right brokerage.

Lakeshore Realty is the preferred Brokerage in Incline Village & Crystal Bay, with over 25 years of experience serving buyers and sellers in the North Lake Tahoe region. The brokerage is comprised of a close group of Realtors with extensive knowledge of our area’s unique real estate market. With over $1.4B+ in total sales and 18% of the market share, the firm closes over 160 sales annually and hosts the most top producing Realtors in our market. Lakeshore Realty is located on the most distinguished street in all of Incline Village.

Incline Village & Crystal Bay real estate is our specialty.

The Best Real Estate Office in Incline Village: Voted Best Brokerage 2019

#1 Brokerage 2018: $206,860,000 in sales and 18% of the market share

Most Top Producing Realtors: Closing over 160 sales annually 25 Years of Local Selling Experience: Lakeshore Realty established since 1994 Highly Specialized in Incline Village & Crystal Bay: Our only focus is our niche market Best Office Location: The most distinguished street, across from Incline Beach, 1/2 a block from Hyatt Regency Lake Tahoe & the most trafficked street in Incline Village.

Market Seasonality Seasonality is an essential factor to consider when looking at our housing market because the peak selling season (June-October) is a short five months out of the year and accounts for 51% of the overall sales. So while it might seem like the mid-year sales are lower than midyear 2018, it’s imperative to compare the snowfall levels as sales drop off starting in November and stretching through May. Winter Affects Summer Sales According to onthesnow.com, the Lake Tahoe region had 690 inches of snow and 97 total days of snowfall lasting through the last week of May 2019! Comparatively, the 2017-2018 season had 390 inches of snowfall and only 63 days of snow! That means this year the housing market experienced 43% more snow, which is likely a factor affecting supply as well as delaying the already short summer selling season.

How to Take Advantage of Market Seasonality So how do you make the most of the real estate market seasonality? The best way is to talk to a local, experienced broker or agent. They will be able to provide you with market metrics for the North Lake Tahoe region that will educate you on the price patterns by comparing the median sales prices and number of sales for each month through different years. This comparison will allow you to identify the market fluctuations and determine when it’s the best time to buy or sell for your needs. At Lakeshore Realty, each Realtor is highly specialized in our niche market, and our sole focus is exclusively Incline Village & Crystal Bay. We encourage you to use our indepth knowledge of our community and market to help you with the sale or purchase of your home.

It’s essential to know the seasonality of the real estate market so you can capitalize on the best price as a buyer or seller. You may not think the seasons have that big of an impact on the market, but it does, in some cases as significant as a 10% swing in price in both directions! For example, a $1,379,000 home could have an expense or savings of $137,900 depending on the time of year you are purchasing or selling.

Homes, PUDs, & Condo 2nd Quarter Sales 2016-2019

Q2 2016

Q2 2017

# of Home Sales

Q2 2018 # of PUD Sales

Q2 2019 # of Condo Sales

MARKET WATCH

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954 Lakeshore Blvd., Incline Village NV 89451

www.LakeshoreRealty.com

The first half of 2019 Incline Village & Crystal Bay real estate market set record highs in median sales prices across all housing categories, which includes Homes, Townhomes, and Condos. The sales were slow to start this year, likely due to a substantial and prolonged winter as well as a continued shortage of inventory.

CONTACT A REPRESENTATIVE TODAY! 954 Lakeshore Blvd., Incline Village, NV 89451 (775) 831-7000 www.LakeshoreRealty.com

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Planned Unit Developments As an ever increasingly popular category, Planned Unit Developments have enjoyed strong price growth while maintaining steady sales throughout the year. While most categories dropped significantly in the number of sales through the first two quarters, PUDs only had one less sale (26) in 2019 vs 27 total sales in 2018. This is likely due to the availability and accessibility of these units throughout the winter.

Unlike many single family homes, PUDs enjoy snow removal services allowing them to be easily accessible during the winter months.

Buyers that may have considered a home were likely steered toward these units due to the convenience of snow removal during harsh winters.

QUICK MARKET STATS 2nd Quarter 2019 vs 2018 Median Price Homes: $1,379,000 +5% PUD’s: $1,245,000 +21% Condos: $560,000 +5%

# of Sales 72 -13% 26 -4% 69 -18%

Days to Sell 72 -43% 26 +39% 69 +2%

Sales Volume $121,325,500 -30% $31,543,957 +14% $41,688,200 -12%

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Single Family Homes The housing market in Incline Village continued its growth with sales prices up 5% compared to last year at this time, resulting in a median sales price of $1,379,000 for a single family home. The increasing prices of homes is largely due to the continuing trend of low inventory paired with a substantial winter.

Mid-year home sales slowed by 13% with total of 72 sales compared to 83 Quarter 2019a(Jan-June) last year at this time.

Also experiencing nimum Median Maximum Avg. DOM a steep decline is the sales volume $5,150,000 238 of homes which decreased by 30% 50,000 $1,610,000 $5,000,000 413 or $51 million dollars.

Further proof 398,000 $3,725,000 $4,700,000 233 that we are still reeling from the long 45,000 $1,620,000 $4,580,000 181 winter can be seen with the average 25,000 $1,900,000 $3,750,000 166 time it takes for a home to sell. In 090,000 $1,295,000 $3,095,000 221 2018 we had a considerably lighter 35,000 $1,737,500 $2,950,000 197 snowfall and it took a home 173 days 90,000 $1,072,500 $2,900,000 194 to sell while this year it took 247 days 300,000 $1,875,000 $2,300,000 299 to sell, a 43% increase!

75,000

$1,600,000

$2,200,000

292

$1,075,000 $1,475,000 137 The most popular price point was in 00,000 $898,500 $1,165,000 319 between $1,000,000 - $1,500,000, 73,000with a total $680,000 148of the of 18 sales. One $650,000 245 most popular neighborhoods in 73,000terms $1,379,000 $5,150,000 247 with of sales was Lower Tyner, nine sales. Tying right behind that with eight sales each were Lakeview d Subdivision, The Woods, and Jennifer.

75,000

Homes

Q2 2018

Q2 2019

% Change

Closed Sales

83

72

-13.2%

Median List Price

$1,366,000

$1,399,000

+2.4%

Median Sale Price

$1,310,000

Average DOM Total Sales Volume

173

$1,379,000 247

$173,066,400 $121,325,500

+5.2% +42.7% -29.8%

775-831-7000 | 800-954-9554 | LakeshoreRealty.com

Single Family Home Jan - June 2019 Home SalesSales 2nd Quarter 2019 (Jan-June) Area

Total Sales

Minimum

Median

Avg. DOM

Maximum

Lower Tyner

9

$650,000

$1,610,000

$5,000,000

Millcreek

3

$1,398,000

$3,725,000

$4,700,000

Eastern Slope

4

$845,000

$1,620,000

$4,580,000

Upper Tyner

7

$625,000

$1,900,000

$3,750,000

Ponderosa

7

$1,090,000

$1,295,000

$3,095,000

238PUDs experienced strong price appreciation with an 21% increase in the median sales price from $1,030,000 in 2018 to $1,245,000 413 in 2019. These homes also enjoyed a substantial 39% drop in the 233average days on market from 197 in 2018 to 119 in 2019. This drop 181in days on market fueled both prices and total sales volume up, 166resulting in a strong 13% increase in total sales volume from $27.7M in the first two quarters of 2018 to $31.5M so far in 2019.

221

Lakeview Subdivision

8

$735,000

$1,737,500

$2,950,000

197

The Woods

8

$690,000

$1,072,500

$2,900,000

Lakefront Incline

1

-

-

$5,150,000

Crystal Bay Non-Lakefront

5

$1,300,000

$1,875,000

$2,300,000

Championship Golf Course

5

$675,000

$1,600,000

$2,200,000

Mountain Golf Course

4

$875,000

$1,075,000

$1,475,000

Jennifer

8

$700,000

$898,500

$1,165,000

Skiway

2

$573,000

-

$680,000

Central North of Hwy 28

1

-

-

$650,000

TOTAL:

72

$573,000

$1,379,000

By far the busiest complex in terms of sales was Incline Creek Estates 194with 7 sales, resulting in 27% of the total PUD market. Prices for these 299units ranged from a low of $1,430,000 to a high of $1,662,500 for one of the recently completed units. The next two most popular 292 complexes were Tyrolian Village with 5 sales and Deer Creek with 137 another 3 sales overall. Tyrolian Village typically holds the top spot 319for number of sales due to the size of the complex, however, sales 148may increase as the summer months continue. Deer Creek is a small 245complex that has seen a surprising number of sales so far this year, likely due to the increasing prices of single family homes in the area.

$5,150,000

247

Popular Neighborhoods Based on Sales (Single Family Homes) Lower Tyner tends to beActive the most popular in sales year over year, and this is Price Pending Sold likely due to the price point and inventory levels. Lower Tyner is desirable in $0 - $800,000 5 2 12 and many of the homes have lake winter due to its lower-to-mid elevation, views or mountain This neighborhood has a good concentration Homes Q2 2018 Q2of2019 $800,000 - $1,000,000 views. 8 3 10 year-round residents. $1,000,000 - $1,500,000

$1,500,000 Subdivision - $2,000,000 Lakeview

24

17 the

2

5 new

18

13 hotspot

Closed Sales

83

72

is for redevelopment with Freels $2,000,000 $2,500,000 6 homes 1 were 10 just purchased Peak at the- heart of it. Three Median List on Freels Peak with $1,366,000 $1,399,000 Price the intent of tearing down and building new.

This is in addition to the four 6 2 $2,500,000 - $3,000,000 1 homes that are already under construction or were just completed. $3,000,000 - $4,000,000

18

1

3

Median Sale Price

$1,310,000

$1,379,000

$4,000,000 - $5,000,000 1 3 and boasts significant level lots The Woods is a relatively7 low elevation plus a central location. Similar to Subdivision, The Woods has a Average $5,000,000 - $6,000,000 3 0 Lakeview 1 173 247 DOM lot of new construction and remodels.

The price point is attracting buyers $6,000,000 - $10,000,000 11 1 0 year round being just under the market median for a single-family home at Total Sales $10,000,000 6 1 0 $173,066,400 $121,325,500 $1,072,500.

111

18

72

Volume

2019 Home Sales - 72

Condos The limited number of condos for sale and a large number of buyers in Incline Village & Crystal Bay continues to push prices upward. The % Change median sales price of $560,000 is one of the highest we have seen and exceeds the 2nd Quarter 2018 median sales price of $529,500 -13.2% by 6%. In line with market trends, sales were down by 18% from 84 units sold in 2nd Quarter 2018 to 69 units sold in 2nd Quarter 2019. +2.4%

The decrease in unit sales paired with a substantial increase in median +5.2% price are signs that inventory continues to drop. Currently the most popular price point is between $400,000 and $500,000 with a total of 17 sales. Compared to single family homes, condos +42.7% have a relatively low 118 days on market, meaning units are selling quickly, keeping inventory levels low and prices high.

2018 Home Sales - 83

70

70

56

56

42

42

28

28

14 0

14

Jan-Mar

Apr-Jun

26

46

July-Sept

0

Oct-Dec

Jan-Mar

Apr-Jun

36

47

Median List = $1,399,000 Median Sold = $1,379,000

2017 Home Sales - 66

Oct-Dec

2016 Home Sales - 73 70

56

56

42

42

28

28

14 0

July-Sept

Median List = $1,366,000 Median Sold = $1,310,000

70

14

Jan-Mar

Apr-Jun

25

41

July-Sept

0

Oct-Dec

Jan-Mar

Apr-Jun

31

42

Median List = $1,195,000 !

Median Sold = $1,125,000

July-Sept

Oct-Dec

Median List = $1,075,000 Median Sold = $985,000

1st & 2nd Quarter PUD Sales Comparison 2016-2019

1st & 2nd Quarter PUD Sales 2016-2019 954 Lakeshore Blvd., Incline Village NV 89451 | 775-831-7000 | 800-954-9554 | LakeshoreRealty.com 2019 PUD Sales - 26 2018 PUD Sales - 27 30

30

24

24

18

18

12

12

6

6

0

Jan-Mar

Apr-Jun

10

16

July-Sept

Oct-Dec

0

Jan-Mar

Apr-Jun

13

14

Median List = $1,295,000 Median Sold = $1,245,000

July-Sept

Oct-Dec

Median List = $1,095,000 Median Sold = $1,030,000

2017 PUD Sales - 18

2016 PUD Sales - 20

30

30

24

24

18

18

12

12

6

6

0

Jan-Mar

Apr-Jun

8

10

July-Sept

Oct-Dec

0

Median List = $1,092,500 Median Sold = $1,065,000

Jan-Mar

Apr-Jun

9

11

July-Sept

Oct-Dec

Median List = $1,010,000 Median Sold = $1,010,000

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1st & 2nd Quarter Condo Sales

Comparison 2016-2019 1st & 2nd Quarter Condo Sales 2016-2019 954 Lakeshore Blvd., Incline Village NV 89451 | 775-831-7000 | 800-954-9554 | LakeshoreRealty.com 2019 Condo Sales - 69

2018 Condo Sales - 84

70

70

56

56

42

42

28

28

14

14

0

Jan-Mar

Apr-Jun

35

34

July-Sept

Oct-Dec

0

Jan-Mar

Apr-Jun

38

46

Median List = $565,000 Median Sold = $560,000

-29.8%

Not surprisingly, the McCloud complex is leading the market in sales with 9 units sold this year. With a median price of $647,200, Jennifer is a higher elevation neighborhood that is reaping the benefits of 954 Lakeshore Blvd., Incline Village NV 89451 | 775-831-7000 | 800-954-9554 | LakeshoreRealty.com McCloud condos continue to push the market price point higher summer snowmelt and an attractive price range. With a median sales price of $898,500, well under the market median, Jennifer appeals to a wide as they outpace most complexes in our area. Further, Mountain range of buyers. This area’s natural beauty is maximized with forest settings Shadows (8), Bitterbrush (6), all round out the top 3 complexes and and no fear of overbuilding due to US Forest Service and IVGID owned they account for 33% of the total condominium market in Incline parcels.

Village and Crystal Bay. Total:

1st & 2nd Quarter Home Sales

Comparison 2016-2019 1st & 2nd Quarter Home Sales 2016-2019

2017 Condo Sales - 88

2016 Condo Sales - 83 70

56

56

42

42

28

28

0

Oct-Dec

Median List = $539,000 Median Sold = $529,500

70

14

July-Sept

14

Jan-Mar

Apr-Jun

38

50

July-Sept

Oct-Dec

Median List = $469,000 Median Sold = $446,250

0

Jan-Mar

Apr-Jun

33

50

July-Sept

Oct-Dec

Median List = $434,999 Median Sold = $415,000