This report for the May UPDATED ‘FACTS’ from the Washoe County Assessor Records since last posted for April, 2017, in ArrowCreek April 2017 Property Value Update from Washoe County Assessor Records, shows that we have entered the ‘spring’ buying season, with nine properties changing owners during this reporting period. Unfortunately, this ‘news’ comes with a bit of caution. One property was sold short, which we haven’t seen since we began tracking values back in March 2015. Hopefully this is a one-time occurrence and won’t affect anyone’s comps.
As noted last month, several initiatives are underway to enhance sales and values. The initiatives, sponsored by the ArrowCreek Homeowners Association (ACHOA), include a Landscape Committee, which is looking into improving the water quality around our parkway to enhance the ‘greening’ of plantings, a strategic planning initiative, which has yielded a preliminary concept that has received rave reviews from those who’ve seen it, and an update of the Governing Documents, drafts of which have been issued for owner comments and questions. These initiatives are intended to enhance and maintain ArrowCreek as a premier people and family oriented community.
Since May of 2017 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 7.5% over this past year, while prices for homes not on the golf course have also trended upward with an increase of 5.7% over the same period, with the ‘hottest’ neighborhood being Sundance (both on and off course properties exceed the Kiplinger number of 6% and are more ‘in-line’ with west coast home value growth).
On with the facts:
a.) Nine (9) properties were recorded sold in ArrowCreek between 3 April and 12 May 2017 (Per the Washoe County Assessor, who appears to be running late as the data was extracted on 25 May). This brings the total number of properties transferred over the past year to 84 or 7.7% 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 secure environment offered within ArrowCreek.
b.) Four (4) of the properties were on the golf course (where the property boundaries actually touch the golf course, not just have a ‘view’ of it). The rolling average selling price for homes on the golf course now stands at $254.63 per square foot. A decrease of $8.78 per square foot from April’s value. The 12-month rolling average sales price decreased to $935,493.10. One (1) additional lot, on the course, was sold. The rolling average selling price for undeveloped property on the golf course currently stands at $290,466.45 per acre, which represents a decrease of $25,332.58 per acre from last month’s value.
c.) Four (4) properties were sold that are not connected to the golf course. The rolling average selling price for off course homes rose to $246.48 per square foot, which is up $2.96 per square foot over last month. The 12-month rolling average sales price increased to $781,205.88. No additional lots were sold during this period. The rolling 12-month average selling price for vacant land still stands at $182,013.50 per acre, a decrease of $4,343.89 per acre due to a statistical change by covering only the last twelve (12) months.
d.) A premium price exists if the lot has a common boundary with the golf course (59.6%). This difference in values between the two categories, in general, appears to be following market trends. However, there’s little explanation for the $108,451 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 throughout 2017.
2. The housing market in Northern Nevada for existing homes continues to follow economic trends. The spring selling season is upon us and 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 definitely 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: $225.75 per square foot
Semi-Custom Off-Course Homes: $223.98 per square foot
Custom On-Course Homes: $322.03 per square foot
Custom Off-Course Homes: $312.27 per square foot
By Ron Duncan May 2017
For previous postings of the ArrowCreek property value updates: click here.