Happy New Year!
This report with the December UPDATED ‘FACTS’ from the Washoe County Assessor Records since last posted for November, 2017, in An ArrowCreek Property Value Update (November 2017 from Washoe County Assessor Records), shows that we are in the Winter buying/selling season with an additional six properties changing owners during this reporting period. Custom Homes on the Golf Course show a 14.3% premium to customs not on the course.
ArrowCreek Home Owner Association (ACHOA) initiatives are underway to enhance sales and values (a most positive step given the latest values). The initiatives include a Landscape Committee, which is looking into improving the water quality around our parkway to enhance the ‘greening’ of plantings, and a strategic planning initiative, which has yielded a concept that has received rave reviews. These initiatives are intended to enhance and maintain ArrowCreek as a premier people and family oriented community collocated with a private golf club, identified as a Non-Residential area in the governing documents.
Since November 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 12.8% over this past year, while prices for homes not on the golf course have flattened back to an increase of 1.4% over the same period. With six properties changing hands this past month, the ‘hottest’ neighborhood was The Reserve.
On with THE FACTS:
a.) Six (6) properties were recorded sold in ArrowCreek between 16 November and 4 December 2017 (per the Washoe County Assessor, who appears to be running late as the data was extracted on 25 December and the last ‘sale’ recorded was 4 December). This brings the total number of properties transferred over the past rolling year to 85 or 7.8% turn-over rate for our community. This is 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 stable environment offered within ArrowCreek.
b.) Four (4) properties on the golf course (where the property boundaries actually touch the golf course, not just have a ‘view’ of it) were closed during this reporting period. The rolling average selling price for homes on the golf course now stands at $290.25 per square foot. This is an increase of $3.89 per square foot from November’s value, based solely upon the statistical rolling average calculation. The 12-month rolling average sales price decreased to $1,103,954.48, again based upon statistical methods. Two (2) of these properties were lots on the course. The rolling average selling price for undeveloped property on the golf course stands at $256,714.02 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 increased to $246.57 per square foot, which is up by $1.43 per square foot. The twelve-month rolling average sales price increased to $804,583.48. One (1) of the two properties sold during this reporting period was a lot. The rolling 12-month average selling price for vacant land, not on the golf course, now stands 8.2% higher than vacant golf course property at $279,491.22 per acre.
d.) The figure below shows the value trends over the past twelve months.
2. The housing market in Northern Nevada for existing homes continues to follow economic trends. The autumn selling season has faded but we are still 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 Pointe development plan, by using our already available acreage and funding. With that we should see a better environment for all home owners and buyers.
Continuing with the Commentary from previous months: 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 are updated:
Semi-custom On-course: $244.79 per Square Foot
Semi-Custom Off-course: $232.58 per Square Foot
Custom On-course: $339.50 per Square Foot
Custom Off-course: $290.88 per Square Foot
We had a new request from one of our readers for comparison of the ArrowCreek values with those in D’Andrea and Somersett. Having obtained the appropriate reports from the real estate community, here is what was learned. (Data extracted from altosresearch.com)
- D’Andrea – rose 14.3% over the past year with a median price of $359,000 and a cost per square foot of $188. This is slightly better than ArrowCreek homes on the Golf course and significantly better than homes off the golf course.
- Somersett- rose 15.8% over the past year with a median price of $440,000 and a cost per square foot of $208. Again, this is better than the appreciation of our homes.
The biggest ‘threat’ to the three above communities’ home values comes from the ‘new’ tax bill working its way through Congress. The “Limitation on Mortgage Interest” as a deduction, for homes sold above $750,000, could have potential buyers shying away from our community. Couple that with property taxes being disallowed above $10,000, and you’ve got a real threat.
If you want to let OUR lawmakers in either the House or Senate know how you feel about this threat, here is what you can do about it ASAP. Call either 1 (866)338-1015 or 1 (866)220-0044. These two telephone numbers are the TOLL FREE U.S. Capitol Switchboard numbers for YOUR lawmakers (until 2018 or 2020). Press the number 1 for YOUR senator or number 2 for YOUR house representative. Next, enter your five (5) digit zip code. Press from the list of lawmakers you want to talk to in their office during the weekday or on the weekends.
By Ron Duncan
January 02, 2018
For previous postings of the ArrowCreek property value updates: click here.