This year have been quite an adjustment from 2021 as we saw the real estate market go through many changes in 2022. The entire real estate market for Incline Village and Crystal Bay saw a 40% decrease in the number of sales from 468 total properties sold in 2021 to 280 properties sold in 2022. This goes alongside a 44% decrease in total sales volume from $1.03 Billion in 2021 to just over $570 Million in 2022. Although these numbers seem to suggest a crashing housing market, there are a few factors which tell us that the sky isn’t actually falling.
With the number of sales and sales volume decreasing, you would expect the median price of homes to decrease as well. That isn’t the case, however, as our market has seen a 16.5% overall increase in the median price from $1,255,000 in 2021 to $1,462,000 in 2022. There are a few categories and neighborhoods that saw a decrease in median price, but in summary, most homes still saw price growth in 2022. It seems counter intuitive that prices could still be increasing while the number of sales is down and we are seeing price reductions all over, but this is mostly due to the extreme highs in the market that we saw in 2020 and 2021. Prices have yet to adjust from these highs and we expect them to come down next year; just not to pre-Covid levels.
Most buyers have cooled down from the frenzy of the past two years and are taking a more critical look at properties and their investments. Uncertainty about the economy, the political landscape, and the fluctuating real estate market has many buyers waiting on the sidelines. We expect that trend to continue through the winter months with renewed action in spring when most of our inventory comes back to market. The market in spring is likely to either take off at new pricing levels, or remain neutral as buyers and sellers try to determine what the new values will be for homes this summer. If sellers bring their homes to market at a reasonable and attractive price, we could see a substantial increase in sales in 2023. However, if buyers don’t find the new pricing levels attractive, they may wait longer, which would result in a sideways or neutral market for a few months or the entire year.
Pricing is becoming increasingly crucial to getting a home sold in our market and our local experts have seen this all before. Our housing data is hand curated and hyper focused on Incline Village and Crystal bay since our inception in 1994. No other firm has a better perspective on our local market to help you navigate the cycles and fluctuations that we have seen over the years. Contact one of our local and experienced Realtors today!