Sales are up dramatically last twelve months ended July 31, 2013 over the same period ended July 31, 2012. Home sales are up 62.1%; condominium sales are up 68.7%. Three factors combined in the last quarter of 2012 to propel sales to new heights in 2013. The initial surge occurred in November 2012 shortly after the passage of new California tax laws targeting the wealthy. The tax law changes prompted renewed interest in tax friendly Nevada real estate. The second factor was a general public acknowledgement that the decline in home prices had reached a bottom along with the third factor, historic low interest rates. Buyers felt the need to make a buying decision sooner than later because the combination of low prices and low interest rates was not going to last forever. At the beginning of the surge in sales, there were plenty of homes on the market. As inventory dwindled in the second quarter, multiple offers became the norm accelerating price increases. The median sold price of a single family home for the twelve months ended July 31, 2012 was $732,500. For the same period ended July 31, 2013, the median price rose to $925,000 for a 26.3% gain. The median sold price for a condominium the previous twelve months was $292,500. For the same period ended July 31, 2013, the median sold price rose to $384,500 for a 31.5% gain.
The good news for buyers is that the median sold prices for homes and condominiums are still off the historical highs of $1,200,000 and $615,000 respectively established in the 2006-2007 time period. Interest rates remain low at approximately 4.5%.
Having practiced real estate in the Incline Village market since 1977, Bill Hane, Coldwell Banker Select manager, says that most of our buyers have always been from the Bay area. Our market is primarily a second home market and the drive time from the Bay Area is favorable for second homeownership by Bay Area residents.
Sales are up dramatically year-over-year ended July 31st and we have surpassed sales figures established in 2005 and 2006. Low home prices, low interest rates and recent California tax changes targeting the wealthy have combined to trigger the surge in sales and home values in tax friendly Nevada.
Sold prices are up significantly, but still substantially off highs established in the 2006-2007 real estate market. Interest rates are up slightly to about 4.5%.
The current market is neither a strong seller’s market nor a strong buyer’s market and we are not seeing the number of multiple offers we saw in the second quarter of 2013. With prices still below 2006-2007 highs and interest rates still low at 4.5%, buyers should not shy away from the current market. Come on up, the water is just fine.