Incline Village Real Estate Update
Wow, what a week for the Incline Village real estate market. 17 properties closed escrow and there were 9 new escrows which is amazing for this time of year. The inventory is still extremely low with only 135 total properties for sale out of around 8500 houses and condos in IV and CB. Considering we have over 330 agents in our little community, that’s a lot of agents per listing, when numerically there should be a lot of listings per agent.
We didn’t find anything super exciting to talk about on the Incline Village real estate scene this week. So, our focus for this blog entry is to stay away from politics and a gyrating stock market and talk about mortgage interest rates. With interest rates near historic lows, the winter of 2020 is a great time to refinance your mortgage. After making 3 rate cuts in 2019, the Federal Reserve has returned to an era of artificially low interest rates. This is good news for buyers and anyone who is carrying a mortgage of any significance that’s considering refinancing.
As of this writing, interest rates at the major banks for a 30-year fixed-rate conforming loan are around 3.5% and interest rates for a 15 year fixed-rate conforming loan have been hovering in the range of 2.75%. The interest rate for any particular property and the costs associated with refinancing will depend on your credit rating and other factors that the lender deems will have an effect on your ability to repay.
It’s a number crunching exercise to determine whether or not refinancing will have a positive economic benefit for your personal situation. If you are planning on staying in your property five years or longer, you’ll normally benefit from refinancing if the interest rate you get is at least one half percentage point lower than you are currently paying.
If you plan to move within the next 2 to 5 years, refinancing may or may not have positive financial benefits depending on your current interest rate, monthly payment and any costs associated with the new loan. These costs could include appraisal, document fees, origination fee, points and other expenses charged by the lending institution. It is critical that all of these fees be calculated as part of your cash flow expenditures over the next 2 to 5 years when determining whether or not refinancing makes sense for you.
Weekly Real Estate Update
Statistics gathered from the Incline Village MLS on 2/2/20
Houses Condos PUDs
For Sale 80 41 14
Under $1 million 11 20 7
Median Price For Sale $1,999,995 $1,190,000 $940,000
YTD Sales 2020 16 13 3
YTD Sales 2019 12 16 6
New Listings 6
In Escrow 9
Closed Escrow 17
Range in Escrow $385,000 – $1,612,500
These statistics are based on information from the Incline Village Board of REALTORS® or its Multiple Listing Service as of February 2, 2020