Incline Village Real Estate Update 10/21/19
It has been another big year for Incline Village real estate sales. Prices and unit sales have increased overall and the inventory is the lowest we have seen for this time of year in well over a decade. However, the interest rate on a 30 year mortgage crossed above 5% recently. While this is not high by long-term historical standards it could have a ripple effect in the next year or two especially if rates continue higher.
Interest rates have been artificially low for a long time after coming out of the Great Recession. During the past couple of years the Fed has slowly raised interest rates in an effort to move towards normalization. But with home prices having increased significantly since 2012 any interest rate increase can drive the price of a home out of the range of affordability for a certain percentage of buyers. At some point price increases and interest rate increases will either reach equilibrium or a tumble in sales and / or prices will occur until a new equilibrium is found.
The Fed has the market believing there will be one more interest rate hike in 2018 and has signaled the possibility of 3 interest rate moves in 2019. Whether all of these interest rate increases take place remains to be seen. Fortunately, the rate increases of the past several years have been in ¼ point increments thereby avoiding any shock to the marketplace.
Anyone who is considering making a purchase using financing will want to keep a close eye on the Incline Village real estate market and try to strike a deal between now and late winter. Many sellers tend to reduce prices this time of year especially if the property has been sitting on the market for a while. You can potentially get the benefit of purchasing a property well below the asking price and locking in a good interest rate before the next uptick in both property prices and interest rates occurs.
Condo buyers looking for one level living in a great location will want to check out #346 Burgundy Hill. This is a two-bedroom, 2 bath, 1224 square-foot end unit located in building 3 which is considered the best spot in the complex. Lightly used and nicely updated this condo also features an underground parking garage and elevator. The asking price of only $465,000 looks pretty reasonable especially when you consider the location, floor plan, view and lovely Sun exposure. You’ll enjoy some of the best sunsets you’ll get from any piece of Incline Village real estate.