Welcome to the ArrowCreek monthly property value update for a High Desert, Semi-Rural community that happens to contain a PRIVATE Golf Course. Participation in the private golf club is purely optional for all Truckee Meadows community members. This report contains the data that was available on 28 August from the Washoe County Assessor Records. Yes, it is amazing what happens when an election rolls around – the records are being kept up to date.
The available data shows that we continue in the in the thick of the market with an additional eleven (11) properties changing owners during this reporting period. This is at the same level as last month but still going strong. Custom homes on the Golf Course (Non-Residential area) now exhibit only a 2.8% premium to custom homes not on the course. In the mean time, semi-custom homes not on the course are enjoying a 1% 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). 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 July 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 homes in ArrowCreek appear to be settling into a growth pattern beginning in the $278 per square foot region. With eleven properties in nine different neighborhoods changing hands this past month, the “hottest” neighborhood was Sun Dance.
On with THE FACTS:
a.) Eleven (11) properties were recorded sold in ArrowCreek between 26 July and 17 August 2018 (per the Washoe County Assessor, who appears to be current in closed sales.). This brings the total number of properties transferred over the past rolling year to 105 or 8.9% turnover 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.) One (1) property on the golf course (where the property boundaries actually touch the golf course, not just have a ‘view’ of it) was closed during this reporting period. The rolling average selling price for homes on the golf course now stands at $281.34 per square foot. This is an increase of $6.30 per square foot from July’s value, based upon the statistical rolling average calculation. The 12-month rolling average sales price increased to $1,115,100.00, again based upon statistical methods. No additional lots on the course were sold. The rolling average selling price for undeveloped property on the golf course still stands at $248,799.74 per acre.
c.) Ten (10) properties were sold that are not connected to the golf course. The rolling average selling price for off course homes increased to $273.68 per square foot, which is up by $4.11 per square foot. The twelve-month rolling average sales price for non-golf course homes increased to $905,985.26. No additional lots were sold during this reporting period. The rolling 12-month average selling price for vacant land, not on the golf course, stands 27.1% below vacant golf course property at $195,777.17 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 ending.
Do keep in mind that everyone’s selling price is based upon his or her 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 focused on our amenities should go a long way toward creating a better environment for all homeowners 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: $251.08 per Square Foot
Semi-Custom Off-Course: $254.09 per Square Foot
Custom On-Course: $306.10 per Square Foot
Custom Off-Course: $299.78 per Square Foot
• We also received a request from one of our readers for comparison of the ArrowCreek values with those in D’Andrea (Sparks market) and Somersett (Reno market). 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. It is very apparent from the data that smaller homes are selling better than larger homes. Also apparent from the data is that the ‘private’ golf course (a.k.a The Non-Residential area) has little effect on prices because ArrowCreek homes are selling at roughly comparable non-gated community homes in the Truckee Meadows based upon real estate advertising.
It has also come to the author’s attention that some owners of ArrowCreek believe they reside in a ‘golf community.’ Those words appear to emanate from those who have chosen to belong to the ‘private’ golf club. In their minds, it may be true; however, in fact, the truth is only a third of the homes are on the golf course and less than 50% of owners are actually members of ‘the club.’ Yes, we have a private golf club within our gated community, but we also enjoy the freedom to belong or not. The ‘value proposition’ for our unique community should continue to focus on attracting 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 30, 2018
For previous postings of the ArrowCreek property value updates: click here.