Welcome to the ArrowCreek monthly property value update for our High Desert, Semi-Rural community that happens to contain a PRIVATE Golf Course. Participation in the golf club is purely optional for all interested parties. This is not your ‘typical’ golf community as it caters to a broad spectrum of indoor and outdoor interests. In addition, the financial diversity within the ArrowCreek community was put in place by the designer of the community and the county in 1997. It consists of 506 semi-custom homes, typically for middle and upper-middle-income families and individuals, and 579 custom home sites, typically for upper middle and high net worth individuals, of which 457 custom homes have or are being built. As an observer can see, we are a very financially diverse community spanning a large area, roughly 25 square miles, below Mount Rose. This report contains the data that was available on 7 October from the Washoe County Assessor. The Assessors web site wasn’t updated from mid-July until mid-September due to a change in their operating software.
The vagaries of the housing market have definitely caught up with the ArrowCreek community. During these past 2.5 months, 13 properties changed ownership with six of those being attached to the golf property. As you’ll see in the charts below, ArrowCreek homes, and property, has continued to gain in value and is definitely a premier area within the Truckee Meadows. The summer buying/selling season is clearly coming to a close. So, ‘What are the value propositions for ArrowCreek properties?’ Given that our community is now 20 years old. Key ‘take-aways’ from the ‘facts,’ and the realtor forum held on 1 October, are that smaller homes are selling better than larger homes, especially if they are in the $600,000 to $700,000 range, and 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 that own and must maintain golf courses within their gates. Furthermore, it appears that our ‘value proposition’ of being a secure, family-oriented community, with excellent schools, is being recognized by the real estate community, although the realtors would like to see improvements to our welcoming landscaping. Broader marketing should help the entire community with an emphasis on the use of the southeast connector, Blue Ribbon awarded Hunsberger Elementary and the construction of Marce Herz Middle School just outside our main entrance.
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, for the next 20 years.
Since October 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 have been trending together since the fall of 2018. This trend indicates that homes in ArrowCreek appear to be settling into a growth pattern beginning in the $300 per square foot region. There are nineteen neighborhoods in our community. With thirteen properties in nine neighborhoods changing hands this past 2.5 months, Painted Vista neighborhood was the “hottest.”
On with THE FACTS:
a.) Thirteen (13) properties were recorded sold in ArrowCreek between 11 July and 10 September 2019 (per the Washoe County Assessor, who appears to be running a month behind in reporting closed sales but is being hampered by Title Companies furnishing data). This brings the total number of properties transferred over the past rolling year to 71 or 6.5% turnover rate for our community. The turn-over rate remains very low, in the single digits, that may be attributed to general satisfaction with living in our gated community and/or a positive perspective on our amenities with an emphasis on the secure stable environment offered within ArrowCreek or a decreased interest based upon our price position and/or advertising of our community.
b.) Six (6) 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 $305.29 per square foot. This is a decrease of $5.84 per square foot from July’s value, based upon the statistical rolling average calculation. The 12-month rolling average sales price increased to $1,261,819.64, again based upon statistical methods. The rolling average selling price for undeveloped property on the golf course now stands at $295,636.54 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 decreased to $294.67 per square foot, which is down by $4.57 per square foot over last month. The twelve-month rolling average sales price for non-golf course homes increased to $1,154,840.41. The rolling 12-month average selling price for vacant land, not on the golf course, now stands 24.4% below vacant golf course property at $237,594.50 per acre.
d.) The figure below shows the value trends over the past twelve months with the vertical scale being the cost per-square-foot.
2. Fall is here. The housing market has firmed significantly. Lenders are being very careful about approving mortgages. For those desiring a secure, safe environment to raise a family, ArrowCreek should not be overlooked.
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. Property impinging upon the Non-residential area/golf course is currently drawing a 3.6% premium to property not impinging ‘the course.’ 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 2.5 months the averages are:
Semi-Custom On-Course: $260.61 per Square Foot
Semi-Custom Off-Course: $259.25 per Square Foot
Custom On-Course: $333.71 per Square Foot
Custom Off-Course: $350.03 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 equivalent homes in Reno are selling, on average, for $281.27 per-square-foot (Median price $1,400,000) with an average of 158 days, or 5.3 months, on the market. As noted above, you can see our ArrowCreek comparable Custom homes are selling $52 to $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 $227.98 per square-foot (Median price $624,900) with a time-on-market of 84 days, or 2.8 months. Again, ArrowCreek Semi-Custom home averages are around $31 – $33 higher per-square-foot. Median prices rose across the Reno market by 10.7% during the comparable past year while ArrowCreek combined average prices were 5.9% higher.
- Sparks market ‘in general’ – The top quartile in the Sparks market actually compares with the Semi-Custom homes in ArrowCreek. There are no equivalent custome homes in the Sparks market. The median price for these Sparks homes is $185.21 per-square-foot (Median price $549,900) with an average of 86 days on the market, or 2.9 months. ArrowCreek Semi-Custom home averages are around $74 – 75 higher per-square-foot. Median prices rose across this market by 6.7% during the comparable past year. For the ArrowCreek community, the Semi-Custom homes increased by 1.2%.
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 sales points are driving the market.. Also apparent from the data is that the ‘private’ golf course (a.ka The Non-Residential area) has not affected sales or price point. However, prices have moderated to the point where it doesn’t matter whether a custom home is ‘on the course’ or not, the price is the same, at least for this reporting period.
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 and participate in its many activities. 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. Additionally, the communities that are deemed ‘direct competition’ don’t appear to be disclosing their current legal risks to prospective buyers.
By Ron Duncan
October 11, 2019
For previous postings of the ArrowCreek property value updates: click here.