This report contains the data that was available on 26 July and supplemented by a county assessors data update during the week of 30 July from the Washoe County Assessor Records, yes, it’s amazing what happens when an election rolls around. Perhaps the late update was due to focusing on the upcoming election versus paying attention to the job at hand.
The available data shows that we continue in the Summer buying/selling season in a BIG way with an additional ten (10) properties changing owners during this reporting period. This is down by 47% from last month, but still going strong. Custom Homes on the Golf Course (Non-Residential area) now exhibit a 3.5% premium to custom homes not on the course. In the mean-time, semi-custom homes not on the course are enjoying a 4% premium to those abutting the course. This, of course, leads to the question of ‘What are the value propositions for ArrowCreek properties?’ One of the key ‘propositions’ is that ArrowCreek owners’ have the option to join ‘The Club at ArrowCreek’ or not to join – an individual choice of freedom versus other gated communities.
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 June of 2018 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 begun to trend together after a spike in property values for properties on the golf course in the spring of 2017. What this trend indicates is that custom homes in ArrowCreek appear to be settling into a growth pattern beginning in the $272 per square foot region. With ten properties in eight different neighborhoods changing hands this past month, the “hottest” neighborhood was The Reserve.
On with THE FACTS:
a.) Nineteen (19) properties were recorded sold in ArrowCreek between 25 April and 21 June 2018 (per the Washoe County Assessor, who now appears to be current in closed sales.). This brings the total number of properties transferred over the past rolling year to 104 or 9.6% turn-over rate for our community. This remains a relatively low rate, still in the single digits, that may be attributed to a general satisfaction with living in our gated community and/or a positive perspective on our amenities and an emphasis on the secure stable environment offered within ArrowCreek.
b.) Two (2) 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 $292.02 per square foot. This is an increase of $1.19 per square foot from May’s value, based solely upon the statistical rolling average calculation. The 12-month rolling average sales price decreased to $1,159,925.93, again based upon statistical methods. One additional lot on the course was sold. The rolling average selling price for undeveloped property on the golf course now stands at $256,599.80 per acre a decrease of $114.22 per acre.
c.) Seventeen (17) properties were sold that are not connected to the golf course. The rolling average selling price for off course homes increased to $264.23 per square foot, which is up by $1.86 per square foot. The twelve-month rolling average sales price for non-golf course homes increased to $893,195.03. Three (3) additional lots were sold during this reporting period. The rolling 12-month average selling price for vacant land, not on the golf course, stands 29.6% below vacant golf course property at $198,060.98 per acre.
d.) The figure below shows the value trends over the past twelve months with the vertical scale being cost per square-foot.
2. The housing market in Northern Nevada for existing homes continues to follow economic trends. We continue to see a boost to our unique community with the Summer selling season underway.
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. From the sheer volume of property transfers during this reporting period it is clear that the demand for a secure property environment is strong. A balanced marketing approach should focus 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 queries about semi-custom and custom homes both on and off the golf course and their relative selling prices. The following chart portrays the trend lines for custom and semi-custom homes within our community.
For the past month the averages are:
Semi-Custom On-Course: $240.87 per Square Foot
Semi-Custom Off-Course: $250.86 per Square Foot
Custom On-Course: $306.10 per Square Foot
Custom Off-Course: $295.48 per Square Foot
Because of a past request from one of our readers for comparison of the ArrowCreek values with those in D’Andrea (Sparks market) and Somersett (Reno market), we’ve been sharing that data. However, we were unable to obtain that information this month and hope to have that comparison again next month.
Commentary: ArrowCreek homes are definitely in the top two quartiles of Reno and the semi-custom homes are in the top quartile of Sparks. The ‘value proposition’ for our unique community should continue to focus on professionals who value security, good schools and recreational opportunities. More people will come to the ArrowCreek ‘experience’ as Nevada businesses gather top talent with competitive salaries.
By Ron Duncan
August 5, 2018
For previous postings of the ArrowCreek property value updates: click here.