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. It has come to the author’s attention that some members of the ArrowCreek community do not comprehend the financial diversity of our community. The financial diversity within the ArrowCreek community was put in place by the designer of the community and the county. It consists of 506 semi-custom homes, typically for middle and upper middle-income individuals, and 579 custom home sites, for upper middle and high net worth individuals, of which 327 custom homes have or are being built. As an observer can see, we are a very financially diverse community. This report contains the data that was available on 29 September 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 ten (10) properties changing owners during this reporting period. This is at the same level as last month and still going strong, likely reflecting the economy as a whole. Custom homes on the Golf Course (Non-Residential area) now exhibit only a 0.2% premium to custom homes not on the course. In the mean time, semi-custom homes not on the course are a 0.5% higher than 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 August 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 ten properties in five different neighborhoods changing hands this past month, the “hottest” neighborhood was The Reserve.
On with THE FACTS:
a.) Ten (10) properties were recorded sold in ArrowCreek between 24 August and 20 September 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 9.7% 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.) Three (3) 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 $281.45 per square foot. This is an increase of $0.11 per square foot from August’s value, based upon the statistical rolling average calculation. The 12-month rolling average sales price increased to $1,125,421.05, again based upon statistical methods. One of the sold properties was a lot on the golf course. The rolling average selling price for undeveloped property on the golf course now stands at $292,136.06 per acre.
c.) Seven (7) properties were sold that are not connected to the golf course. The rolling average selling price for off course homes increased to $280.98 per square foot, which is up by $7.30 per square foot. The twelve-month rolling average sales price for non-golf course homes increased to $956,365.19. Four of these properties were lots sold during this reporting period. The rolling 12-month average selling price for vacant land, not on the golf course, stands 55.6% below vacant golf course property at $187,779.36 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-Fall 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: $257.52 per Square Foot
Semi-Custom Off-Course: $256.32 per Square Foot
Custom On-Course: $298.85 per Square Foot
Custom Off-Course: $311.38 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). Having obtained the appropriate reports from the real estate community, here is what was learned. (Data extracted from altosresearch.com Chase International)
- Reno market ‘in general’ – Custom homes in Reno are selling, on average, for $269.03 per square-foot (Median price $1,049,500) with an average of 145 days on the market. As noted above, you can see our ArrowCreek comparable custom homes are selling $29- 69 per square-foot higher. Data for separate ArrowCreek average time on market was not available. Reno homes comparable to ArrowCreek semi-custom homes are selling for $218.19 per square-foot (Median price $574,497) with a time on market of 66 days. Again, ArrowCreek semi-custom home averages are around $38 – 39 higher per square-foot. Median prices rose across the Reno market by 5.2% during the comparable past year while ArrowCreek combined average prices were only 6.0% higher. Perhaps the increase in value was not as fast in ArrowCreek because the homes are already higher values in the first place.
- Sparks market ‘in general’ – The top quartile in the Sparks market actually compares with the semi-custom homes in ArrowCreek. The median price for these Sparks homes is $188.55 per square-foot (Median price $570,000) with an average of 70 days on the market. ArrowCreek semi-custom home averages are around $68 higher per square-foot. Median prices rose across this market by 7.8% during the comparable past year. For the ArrowCreek community, the semi-custom homes rose 10.2%.
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.
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
October 3, 2018
For previous postings of the ArrowCreek property value updates: click here.