Sale prices on closed escrows are rising at the Resort at Squaw Creek. The number of condominiums sold in 2013 was just two more than in 2012 but the total dollar volume of sales was 61% higher than the previous year.
Why this tremendous increase? I think it is due to a significant reduction in Distressed Property Listings (Short Sales and Bank Owned). Sellers now have less concern with having to compete with the low prices of Distressed Listings since these have dropped from 31% in 2013 to 0 (zero) thus far in the first quarter of 2014. Of the 19 current active listings, none are Distressed listings!
Last year we saw buyers moving toward larger condominiums and ones with a valley view, which equated to higher overall sales prices and resulted in a 31% increase in the average sales price of condominiums sold in 2012. As of the end of the first quarter of 2014, four condominiums have closed escrow and there is one condominium currently in escrow.
We are now seeing listing prices increase. 12 of the active listings are two bedroom condominiums. The average listing price of active listings is 39% above the average sales price for condominiums sold in 2013. Additionally, Condo Hotel Financing became available in 2013 for purchases at the Resort at Squaw Creek. Financing immediately went away with the beginning of the economic downturn in late 2007 resulting in all purchases having to be all cash. As it becomes more widely known that financing is now available, this could contribute to an increase in sales activity at the Resort in 2014.
It will be interesting to see how buyers react to an increase in listing prices. For six years they have seen prices decline 50%-55% from the Developer Sales in 2005 and 2006. Prices are still well below that level and in 2013 it seemed that the buyers were no longer “bottom feeders” but people who saw the value of this unique resort and were willing to pay for what they wanted.
As you know, the Resort at Squaw Creek is the only ski in-ski out luxury hotel with a championship golf course in the entire Lake Tahoe area. It offers owners and guests a multi season vacation experience with wonderful amenities, hotel services and fantastic views that cannot be matched by any other resort hotel in our area. It may not suit everybody, but for those who want a luxury vacation property, it is worth it.
Click here to view All Current Active Listings.
Click here for a Detailed Sales History of the Resort since the downturn.
Contact me if you would like to discuss the Resort sales activity and current condominium values in more detail.
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