Down sizing in the second home market, is less more?

Year to date there are  72 homes which have closed  and 21 homes under contract  to close.

Based on closed sales it indicates larger homes are popular or are they just a better buy?  Here is a break out of homes sales by year and sq. ft. over 5,000

Year      over 5000 sq. f.t

2007       17

2008       4

2009     17

The breakdown of pricing and square footage based on the current inventory of homes For Sale:

Homes              Size                           $(L)                    $ (M)             $(H)

38                    1,000-2,000          $297,000      $559,000      $18,000,000

52                    2,001-3,000         $599,000        $ 1,145,000   $3,500,000

40                   3,001-4,000         $ 879,900      $1,600,000     $9,900,000

41                   4,001-5,000         $895,000       $2,200,000   $5,995,000

18                   5,001-6,000         $1,995,000   $2,995,000   $4,488,000

8                    6,001-7,000         $2,600,000  $3,895,000    $34,000,000

14                  7,001+                  $1,580,000    $6,550,000  $34,000,000

It is a process to educate buyer’s on our  building codes and regulations. Each parcel within Incline Village was assigned an individual  Parcel evaluation Score (IPES). This score was determined by the Tahoe regional Planning agency (TRPA). Each parcel prior to being built was reviewed and assigned a number which determined the size of  home which could be built.  Things taken in to consideration for scores included steepness of slopes and stream zone environments.

When Incline Village was originally developed the size of which were  predominately second homes were approximately  2,000 sq. ft.  Many of the owners were not interested in maximizing the square footage allowed. Instead  they enjoyed the open space between homes. Over the years the  formula of buying tearing down and rebuilding was magic.

Until the last few years when developers were not watching the signs of declining sales our market has a glut of overbuilt homes.

Over the last two years tear down homes were selling for $800,000- $1 million. With a lot value at these price points  this dictated a builder must build the biggest house possible to make a profit. This was all true and a winning formula until the last couple of years. The inventory has pushed down the price per sq. ft. from $600 a sq ft in 2007 to $250 – $475 today. 

Whatever size home you are looking for we’ll find the right fit at the right price!