Distressed property listings and the lack of available financing are still having a strong effect on prices and sales activity at the Resort at Squaw Creek. Sales have slowed down with only 11 sold in 2012, and only 1 that has closed escrow so far this year. Even though the number of distressed property listings has reduced considerably, sellers do have to compete with bank owned and short sale listing prices and the perception in the minds of buyers that property values at the Resort are down. Sellers listing standard sales are listing at higher prices but the comps do not support higher prices, therefore, it could be that sellers will either get low offers or no offers.
My feeling is that for a cash buyer interested in the Resort, it is a great time to purchase, while the distressed properties and the lack of financing are keeping the prices low. There is no other property in the entire Lake Tahoe – Truckee area like the Resort at Squaw Creek and there will be a time when the distressed properties are gone (like at The Village) and the prices will then go up. The good news is even though it is still early in the year, when the two listings that are currently in escrow close, we will be ahead of sales for this same time last year.
In conclusion, for a buyer who wants a ski in ski out property in Squaw Valley, now is the time to act. There are still some low priced listings;
- 2nd floor valley view studio listed at $159,000.
- 7th floor forest view (great view) one bedroom listed at $234,900: short sale.
- 9th floor forest view (great view) one bedroom listed at $295,555.
- 4th floor forest view two bedroom listed at $422,500: short sale.
2013 Resort at Squaw Creek Sales Statistics
Of the 18 currently active listings (that are not in escrow or in contract), 2 are distressed properties;
- 7th floor forest view one bedroom listed at $237,500: bank owned.
- 7th floor forest view one bedroom listed at $234,900: short sale.
Currently there are 2 condominiums in escrow;
- 5th floor forest view two bedroom listed at $399,000: short sale.
- 9th floor forest view two bedroom listed at $459,000: standard sale
So far this year there has been only one condominium at the Resort at Squaw Creek that has closed escrow;
- 9th floor valley view one bedroom, 2 bath, penthouse listed at $349,000 closed escrow at $290,000; standard sale.
Resort at Squaw Creek Sales History, 2009 -2012
Since the beginning of the economic downturn, financing for “Condo Hotels” has dried up. This has resulted in a number of resale listings at the Resort at Squaw Creek becoming short-sale listings or bank-owned listings. The lower prices of these distressed properties have caused the prices of all the other listings to drop dramatically. These lower prices have brought the cash buyers into the market. Consequently 15 condominiums were sold in 2010 compared to just 8 in 2009. 35 condominiums sold in 2011, 15 of those were sold at the Close Out Auction of unsold developer owned condominiums that was held on April 30, 2011. Download RSC Auction Results 2011, for a detailed summary of units and sold prices.
In my opinion, it appears that the market for Resort at Squaw Creek condominiums has bottomed, but is being held at the bottom by the distressed properties that continue to plague the Resort. Sales activity has been slow. The increasing interest in the Resort, demonstrated by a 133% increase in number of sales in 2011 over 2010, has now dropped off. I think that the recovery for the Resort will continue to be slow even though the number of distressed properties is declining. The sellers need to realize a reduced number of distressed properties does not mean they will be successful now in increasing listing prices to pre-downturn levels. My 30+ years experience in this market has taught me that overpriced listings get very little, or no activity. What buyers need to realize is that it is very unlikely that they will see prices at the Resort as low as they were in the last few years. What this could mean to you as a buyer is……Act now while there are still some low priced listings.
In 2012 there were only 11 condominiums sold, six of which were distressed properties (bank owned or short sales);
- 3rd floor forest view studio that sold for $124,000; standard sale.
- 9th floor forest view studio that sold for $145,000; standard sale.
- 4th floor valley view one bedroom that sold for $260,000; short sale.
- 6th floor forest view two bedroom that sold for $375,600; short sale.
- 4th floor forest view two bedroom that sold for $426,000; bank owned.
- 2nd floor valley view two bedroom that sold for $517,000; bank owned.
- 1st floor valley view studio that sold for $84,000; short sale.
- 2nd floor forest view studio that sold for $110,000; standard sale.
- 3rd floor forest view one bedroom that sold for $202,207; court approved sale.
- 3rd floor forest view two bedroom that sold for $390,000; standard sale.
- 3rd floor valley view three bedroom that sold for $745,000; standard sale.
These sales, plus those in 2009, 2010 and 2011, all were cash sales because there is still no conventional financing available for the Resort. This factor causes the pool of buyers for the Resort to shrink and prices to stay low.
The Auction on 4/30/11 brought the two-bedroom values up; on forest views – upper $300K to low $400K range – and valley views in the low $400K to mid $400K range. Since that time the listing prices on two-bedroom valley view standard listings have gone up, in some cases substantially, but the sold prices have remained stagnant with the exception of the one that sold in 2012 for $517,000. Forest view two bedroom standard listings have been priced in the high $300K to low $400K range and have sold at close to asking price. These have been the majority of two bedroom sales since the Auction (11 out of 14). Valley view one-bedroom standard listing asking prices have increased by approx. $50,000 to $100,000 but the sold prices have increased slightly each year, up approx. $40,000. There has been only 1 sale of a forest view one bedroom since the Auction (the Court Approved Sale for $202,207 that closed in October 2012.
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