This report for the December UPDATED ‘FACTS’ from the Washoe County Assessor Records since last posted on November 29, 2016 in A Community with Two Personalities – November 27 2016 Property Value Update from Washoe County Assessor Records shows that we need to better emphasize the top qualities of our community to maintain and raise our collective property values. We are definitely in the ‘winter’ selling season, only three properties changed owners this past month, compared to eight for this same time period last year. Additionally, the local media, both TV and Newspaper, are noting a general leveling out of the housing market, if not a slowing down in home buying activity.
Since the beginning of 2016 and over the past twelve (12) months:
1. ArrowCreek properties have stayed in the premium class within Washoe and Douglas Counties. As you read this report you will see that prices have improved for properties on the golf course, with an appreciation of 11.6% over this past year, while prices for homes not on the golf course have basically held even with an increase of 3.5% over the same period.
a.) Three (3) properties were recorded sold in ArrowCreek between 22 November and 22 December 2016 (per the Washoe County Assessor). This brings the total number of properties transferred this calendar year to 81 (64 homes and 17 lots) or 7.4% turn-over rate for our community. A relatively low rate, still in the single digits, that may be attributed to a general satisfaction with living in our gated community or an absence of a more positive perspective on our amenities and an emphasis on the family environment offered within ArrowCreek.
b.) One of the properties was on the golf course (the property boundaries actually touch the golf course, not just have a ‘view’ of it) and sold for $155.83 per square foot. The rolling average selling price for homes on the golf course now stands at $253.43 per square foot. An increase of $2.50 per square foot from November’s value. No additional lots, on the course, were sold. The rolling average selling price for undeveloped property on the golf course currently stands at $295,810.86 per acre.
c.) Two (2) properties were sold that are not connected to the golf course. The home sold for $191.93 per square foot. The rolling average selling price for off-course homes rose to $244.09 per square foot, which is up $11.93 per square foot over last month. This increase amounted to a 5.1% increase in the selling price. The 12 month rolling average sales price increased to $851,740. One undeveloped lot was transferred during this same time period. The rolling 12-month average selling price for vacant land stands at $196,221.44 per acre.
d.) With one vacant lot sold, a premium remains if the lot has a common boundary with the golf course (50.8%). This value between the two categories, in general, appears to be following market trends. There’s little explanation for the $99,589 per acre difference between the vacant lot purchase prices, as the difference does not show up in the closing home sales prices. However, it is worth noting that there are a very limited number of ‘golf course’ lots versus those not on the golf course.
e.) The figure below shows the value trends over the past twelve months. Our homes and properties have appreciated very nicely over this past year and hopefully that trend will continue into 2017.
2. The housing market in Northern Nevada for existing homes continues to follow economic trends. As the winter selling season is upon us, we are definitely seeing a boost to our unique community.
Do keep in mind that everyone’s selling price is based upon their own set of circumstances and the above picture is hindsight, not necessarily foresight. Going forward, let’s focus our energy on improving the amenities we currently have and build out those that were in the original ArrowCreek/Southwest Point development plan by using our already available acreage and funding. With that we should see a better environment for all home owners and buyers.
If you wish to support The Club at ArrowCreek, you are urged to become either a full golf or social member. In addition, the FOA LLC is certainly open to new investors.
Requested Commentary: During this past month the author received a query about semi-custom and custom homes both on and off the golf course and their relative selling prices. The author’s concern was that there wouldn’t be a significant enough turn-over sample to give a meaningful value. Sixty-four homes sold during the Jan-Dec 2016 time frame. The following statistics were derived:
12 Semi-Custom On-Course Homes: $206.23 per square foot average
27 Semi-Custom Off-Course Homes: $216.30 per square foot average
10 Custom On-Course Homes: $310.08 per square foot average
15 Custom Off-Course Homes: $294.12 per square foot average
By Ron Duncan December 2016
For previous postings of the ArrowCreek property value updates: click here.