Popular news and media outlets offer many differing theories as to what is influencing the spending of the wealthy and the state of the luxury market. Although the luxury market in Incline Village and Crystal Bay has much in common with other high-end markets, the factors influencing real estate sales in our area are unique.
A year-over-year analysis of the luxury market in Incline Village and Crystal Bay shows us that in nearly every measurable statistic, our market continues to follow healthy, seasonal trends. The median list and sales prices were identical at just under $3M with a slight increase in the median days on the market from 161 days in 2018 to 191 days in 2019. (Incline Village Luxury Market Update 2018 Vs 2019) The average list to sale prices remains remarkably close, meaning buyers are continuing to elevate to rising prices and seller’s are accepting offers close to their asking prices.
The luxury real estate market doesn’t react to economic fluctuations the same way as the ordinary housing market would. For example, moderate changes in interest rates won’t affect the spending habits of the wealthy, where variations in the stock market would have a more significant impact. The idea is that the luxury market for homes above $2M in our area is largely discretionary, meaning the purchase is more likely driven by choice of lifestyle rather than financial pressures. Under these conditions, luxury buyers have more flexibility in their purchase decisions and have more negotiating power than the typical buyer. This balance between the luxury buyer and seller has kept our market steady despite recent fears of either a downturn or run-away pricing.
As a property owner in our area, this is excellent news for the value of your home, and if you are considering selling, the timing couldn’t be better. Not only is the timing right for our seasonal shift, but buyers are also waiting in the wings after another heavy winter. As previously mentioned, the factors influencing the buying behavior of the wealthy are unique from the typical market and can fluctuate at any time. Buyers in this category can easily pull back on their spending and “hunker down” should fears of a downturn arise.
This is why you should consider listing your property with an experienced Realtor that can navigate the shifting needs of buyers and price your home accordingly. Chris and Patti Plastiras not only own the #1 Brokerage in 2018 for total sales volume, but Chris was also the #1 individual agent in sales volume last year. With decades of experience and a dedicated marketing team, Chris and Patti are your best resource to sell your luxury home for the best price in the least amount of time. Call us today for a personalized valuation of your property!