Like politics, all real estate is local and that rings true more than ever during the summer of 2014 on the Nevada side of North Lake Tahoe. While there is an excess supply of single-family homes for sale in Incline Village and Crystal Bay there is actually a significant shortage of particular types of condominiums in our community. Due to the random nature of discretionary sales and purchases of vacation homes, there is no guarantee of a steady supply of any particular style or floor plan on the market at any given time.
Nowhere has this been more evident than in the ever-popular McCloud condominium complex which is just a hop and a skip from the beach. While there are virtually always at least a few two-bedroom condos for sale somewhere in this development, the history of three-bedroom properties in McCloud resembles a veritable roller coaster. Between October 6, 2005 and May 2, 2011 not a single sale of a three-bedroom condo in McCloud took place.
However, there were three sales of three-bedroom floor plans in 2011 and again in 2013. But there has only been one three-bedroom condo in McCloud on the market in 2014 and it went under contract just six days after hitting the Incline Village MLS. Unit #183 was a mostly original unit in a nice woodsy location with the final sale price of $570,000 at approximately 7% higher than the previous sale in February 2013. Since there are no three-bedroom condos currently for sale in the complex we can anticipate that the next one that gets listed will probably be priced somewhere between $600,000 and $700,000 depending on the location and upgrades.
A similar situation exists in Third Creek. As of this writing there is only one property for sale in the entire complex and it is one of the largest three-bedroom floor plans ever built there. Priced at $879,000, this 2566 ft.² condo features three bedrooms, three full baths and backs up to the creek and open space. There are no other properties for sale in Third Creek and of the 11 transactions that have closed escrow this year in this development only two of them have been two-bedroom units.
The lack of two-bedroom properties coming on the market in Third Creek means that we will likely see significant upward price pressure when the next one is offered for sale. It is quite likely that a multiple offer situation will result when a two-bedroom condo in Third Creek is put on the market. Property owners in this complex, who have waited out the recession in hopes of a return to a seller’s market, will find that positive situation occurring during the remainder of 2014.
There is a very nice gated community located at 875 Southwood Blvd. called L’Ermitage. This 40 unit development consists of two and three-bedroom, two story, townhouse style properties most of which come with a one car garage. Located less than 1 mile from the beach, the center of Incline Village and the post office, these properties rarely come on the market. In the last 11 years there have been only 17 transactions in all of L’Ermitage - which works out to average of less than two deals per year.
When #33 L’Ermitage was listed for sale in late July there was a veritable feeding frenzy and the property went under contract just 10 days after being offered for sale. One lucky buyer got an accepted offer while others who did not pull the trigger quickly enough missed out on this rare opportunity to own a highly desirable three-bedroom, 2.5 bath, 1600 ft.² condo, in a very good location.
Property owners of two and three-bedroom condos at low elevation (especially if they have a garage) have a great opportunity during the remainder of 2014 to get a good price for their place. Since Lake Tahoe is filled with visitors during the busy summer season and demand for condominiums is exceeding the demand for single-family homes this year, condo owners who have been waiting for a good time to list their property for sale may want to get into the game while there is still a high level of showing and sales activity.