As we begin the month of October, it’s time to look back at the Incline Village real estate sales for the first 3 quarters of the year. The statistic that leaps out at us the most is the decline in unit sales when compared to one year ago. There were a total of 220 houses, condos and freestanding condos closing escrow through the end of September 2022. This compares with 342 properties changing hands to new owners for the same time period in 2021.
This represents a decline of approximately 35% in the total number of units sold year over year. The most striking statistic is the decrease in condo sales during the 3rd quarter. Last year there were 52 sales versus only 29 this year. Normally the 3rd quarter is the busiest time of year for Incline Village real estate sales. So, this slow-down could potentially be a harbinger of things to come as we gaze into our crystal ball.
A total of 114 single-family homes and freestanding condos closed escrow during the 1st three quarters of 2022. Only 11 of these properties had a final sale price under $1 million. This is in contrast to last year when 23 properties sold for less than $1 million during the first three quarters. The median sale price continues to climb and is now at $2.5 million for these 2 categories combined.
Breaking down the numbers further we can see there were 90 single-family homes and 24 freestanding condos that closed escrow with a median price of $812 per square foot. The luxury market continued to see fairly steady activity with 16 properties in excess of $5 million getting sold. The prices for properties in SFR and PUD categories this year ranged from $650,000 all the way up to $17.5 million. This compares to a price range last year of $550,000 to $32.5 million.
Looking at the condo market, the 106 properties in this segment ranged in price from $360,000 for a little one-bedroom unit all the way up to nearly $3.7 million. The median price for a condo so far this year has climbed to $1,005,000 which is up significantly from the same time period last year of $785,000. What is most noticeable about the condo market is the increase in inventory from single digits early in the year to the current level of around 40 condos for sale on the Incline Village MLS.
There are several factors at play. Overall unit sales are declining on a year-to-year basis, the inventory is rising, but the median price is still going up. We need to remember that the median price is not an indicator of price trends. It is simply a marker that defines the point above and below where half of all sales take place. With the floor under prices moving up the last few years, it is only natural that the median price would continue upward even with unit sales trending downward. It’s going to be interesting to see how things progress during the 4th quarter of 2022 as the US economy comes to grips with a number of different factors affecting the outlook for the coming year.
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