This report for the February UPDATED ‘FACTS’ from the Washoe County Assessor Records since last posted on Jan 31, 2017, in ArrowCreek January 2017 Property Value Update from Washoe County Assessor Records shows that we are in the ‘winter’ selling season (Duh!), with only three properties changing owners during this reporting period, compared to three for this same time period last year. Additionally, the local media, TV and newspaper, are noting a general leveling out of the housing market, if not a slowing in home buying activity. The Kiplinger Letter (Vol. 94, No. 6) notes that home values rose in 2016 by 5.6% but notes that slower gains were noted for higher end homes in most markets. As noted/observed below, ArrowCreek values have been above this average.
Since March 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 average appreciation rate of 13.8% over this past year, while prices for homes not on the golf course have basically held even with an increase of 6.2% over the same period (both of which exceed the Kiplinger number and are more ‘in-line’ with West Coast home value growth).
a.) Three (3) properties were recorded sold in ArrowCreek between 17 January and 22 February 2017 (per the Washoe County Assessor). This brings the total number of properties transferred over the past year to 83 or 7.6% 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 a positive perspective on our amenities and an emphasis on the family environment offered within ArrowCreek.
b.) One (1) of the properties was on the golf course (where the property boundaries actually touch the golf course, not just have a ‘view’ of it) and sold for $300.93 per square foot! The rolling average selling price for homes on the golf course now stands at $261.66 per square foot. This is an increase of $4.37 per square foot from January’s value. However, the 12-month rolling average sales price decreased to $1,002,325. No additional lots, on the course, were sold. The rolling average selling price for undeveloped property on the golf course currently stands at $302,639.22 per acre.
c.) Two (2) properties were sold that are not connected to the golf course. The rolling average selling price for off course homes fell slightly to $243.08 per square foot, which is down $0.15 per square foot over last month. The 12-month rolling average sales price decreased to $775,739. No additional lots were sold during this period. The rolling 12-month average selling price for vacant land stands at $197,661.77 per acre.
d.) A premium price exists if the lot has a common boundary with the golf course (53.1%). This value between the two lot categories, in general, appears to be following market trends. There’s little explanation for the $104,977 per acre difference between the vacant lot purchase prices, as the same 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 throughout 2017.
2. The housing market in Northern Nevada for existing homes continues to follow economic trends. As the winter selling season is here, 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.
Continuing with the Commentary from last month: During a previous 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. However, with that caveat presented, the following statistics were developed:
Semi-Custom On-Course Homes: $216.94 per square foot average
Semi-Custom Off-Course Homes: $221.51 per square foot average
Custom On-Course Homes: $328.76 per square foot average
Custom Off-Course Homes: $290.55 per square foot average
By Ron Duncan February 2017
For previous postings of the ArrowCreek property value updates: click here.