No matter where you are or what your view of the world, 2021 was not a dull year for newsworthy events, changes in the American culture or the Incline Village / Crystal Bay real estate market. By historical standards this was moderate sales year with the Incline Village MLS reporting 460 sales of houses, condos and freestanding condos and vacant land, January 1st – December 31st . compared to 644 total sales in 2020. This is roughly 29% less sales year over year. In a “normal” year, we will have roughly 400 total sales in all of Incline Village and Crystal Bay. After the initial uncertainty of the economic impacts from COVID, prices for single-family homes and condos skyrocketed after the economic shutdowns and stay at home orders became the new normal and people not only in CA but all over the country fled the cities for more rural and desirable lifestyle. Lake Tahoe Luxury estates saw record breaking sales prices and quantity of sales in 2021. Though we had a moderate year for sales in 2021, our inventory continues to shrink to historically low levels and demand remains sky-high, with Lake Tahoe Luxury estates seeing record breaking sales prices.
As we enter the start of 2022, there are approximately 65 total residential properties for sale in our entire community. The inventory of properties during the year ranged from the low 40s to the mid-70s depending on the season and pace of sales activity. The number of houses for sale moved below a 2-month supply (MSI) during the summer and early autumn, and as remained at the current level 1.7 (MSI) into the new year because of year ‘round sales and listing activity with few listings either expiring or being withdrawn from the market.
Once again, the net result is that we have seen a drastic change in our market over the past 12 months for better or for worse and we do not exactly know how long it will last until we return to a “healthy” real estate market without the extreme price increases and housing shortages that was witnessed during the previous 12 months when rose dramatically and subsequently a large portion of the buyers were priced out and people who purchased homes in 2020 had significant gains. The combination of extremely low inventory levels, excessive demand and strong local economies in the markets that provide most of the buyers for properties in our community, has brought an influx of diverse new community members and an increased pressure local challenges (housing affordability, infrastructure, traffic, trash, environmental issues, etc.) during the past year.
Sales of single-family homes were almost identical to those of condominiums throughout the year. The most popular neighborhood was Lower Tyner with 30 sales followed by 18 sales in each Mill Creek, Ponderosa and The Woods neighborhoods. Luxury homes did rather well with 29 homes selling between $4 MM-$9 MM and 10 homes sales between $9.0 MM - $47.5 MM.
There are currently only 36 single-family homes and PUDs for sale and only 4 PUDS and 0 Single-Family homes with an asking price under $1,000,000. There was a total of 10 sales of Single Family homes that closed escrow below $1,00,000 which wiped out a lot of the inventory in this price range. We also saw a handful of shared ownership properties/timeshare like come on the market this year. We suspect these will become more common as inventory continues to dwindle.
Barring some catastrophic economic or political event we believe that real estate sales and prices in 2022 will remain relatively strong and the Incline Village and Crystal Bay real estate market will continue to be very competitive. Buyers will want to keep an eye out during the winter months for any new listings that may be of interest as they likely will not last long enough for them to get off the slopes to see it. As reasonably priced properties in good locations with desirable floor plans get listed for sale, there will likely be a significant amount of showing activity and new contracts being written within the first 24 hours.
For a full breakdown of 2021 sales visit us at www.insideincline.com.
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