To get an insight into why Incline Village real estate continues to show solid upward gains while the most of the country is licking their wounds, we need to analyze the current inventory for sale, the asking and sale prices for the past three years and the trends that are occurring. Bear in mind that there is a finite supply of homes and condos with virtually no raw land left for development and an increasing demand by the 40 to 70 crowd looking for their slice of heaven in the nicest community at Lake Tahoe.
It is important to look at not just median sale prices but also median asking prices over a long period of time so we can see trends in the market's direction. So, stick with me and follow the dates and numbers.
While the median sale price has ratcheted steadily upwards during the past three years the median asking price rose sharply during the seller's market of 2005, retreated a bit in the buyer's market of 2006 and is now starting to creep upwards again. What this tells me is that the mentality of the sellers in Incline Village is one of optimism. Most of the property owners in Incline Village are relatively affluent and can afford to hold onto and enjoy their property through any perceived softness in the market. While the fact that some buyers are sitting on the sidelines is evidenced by the decline in unit sales versus 2005, prices are remaining firm as evidenced by both the median asking and sold prices over the past three years.
Most people who buy property in Incline Village and other high-end resort communities do so because they want to, not because they have to. Most sellers sell because they want to, not because they have to. It creates a market where properties generally sell slower, but at a higher percentage of the final asking price than most other places in the country.
Another key factor is that virtually all of the homeowners in high-end resort communities make their money somewhere else. The prices of the properties bear no relation to local incomes unlike the typical residential real estate market. The prices for properties for sale in Incline Village reflect what an affluent person is willing to pay for any particular property.
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