Village at Squaw Valley Market Update, March 12, 2012

Financing Now Available!

I have a lender who will do loans on purchases at the Village to qualified buyers. We have recently closed escrows on several financed purchases using this lender and the rates and terms are competitive. Also, the lawsuit filed by the First Ascent HOA against the developer has been settled and it appears that the suit filed by 22 Station HOA has also been resolved (we are waiting official notification). This means that other lenders may be willing to loan on Village condominiums in the near future.

Market Summary

In the 4th quarter of 2007, the start of the economic downturn, lenders stopped offering financing on purchases in “Condo Hotel” developments. This has had a strong impact on prices at the Village. For a number of listings, by sellers who had to sell their condominiums, financing available resulted in them becoming bank-owned or short sale listings, resultin in lower list prices. These distressed properties caused the prices of all other listings in the Village to drop significantly! This brought the cash buyers into the market. Consequently, the number of sales per year slightly increased from pre-downturn levels (except in 2009), but the average price per sale went down approximately 50% from its peak before the downturn. This has obviously not been good news for sellers, but it has been great news for buyers. Through the end of 2012, both the average price and median price for condominiums sold in the Village was the lowest since 2009!

Now conditions now seem to be changing. The number of distressed properties listed and then sold has dropped by about 48% and listing prices appear to be rising.

In 2011 there were 22 sold condominiums in the Village compared to just 16 in 2010, a 37% increase!

In 2010 and 2011, 15 of the sold condominiums were distressed properties or 39.4%.

2012 sales were slightly less than 2011 with 18 Village condominiums sold. Only 3 were distressed property sales (16.6%), two closed in the 1st half of the year, and one in December;

• A one bedroom was sold for $245,000: bank owned.
• A one bedroom was sold for $235,000: short sale.
• A three bedroom was sold for $825,000: short sale.

Here are the other 15 sales for 2012, all standard sales;

• 9 were one bedrooms that sold from $235,000 to $352,000.
• 1 was a one bedroom plus den that sold for $420,000.
• 5 were two bedrooms that sold from $439,500 to $625,000.

Of the 24 current listings, none are distressed properties (bank owned or short sales). As of this date there have been 2 Village condominiums that have closed escrow this year, both standard sales;

• A one bedroom sold for $258,000.
• A three bedroom sold for $1,637,500.

Currently there are 3 Village condominiums in contract, all standard sales;

• A two bedroom is listed at $687,000.
• A two bedroom is listed at $699,000.
• A two bedroom is listed at $999,900.

The market for the Village is returning to pre-down-turn levels, especially in the larger condominiums – one bedroom + den and larger. Both sold prices and listing prices in the Village are going up, with the exception of the now occasional distressed property listing.

This is the Time to act!

It is still a great time for qualified buyers to act! With financing available, and some Village condominiums that are listed at very good prices – a large Studio condominium listed at $349,000, two 1 bedroom untis are listed under $400,000 and a 2 bedroom condominium unit is listed at $489,000. As I predicted, prices have increased from where they were at the end of last year, but they are still significantly lower than what they were at their peak before the down turn.

Despite the disappointing volume of mid season snow fall this year, we have had a very busy ski season with lots of visitors in the Village. Showings of condominiums to interested buyers in the Village have increased dramatically in recent weeks. The sales volume, with both sold listings and pending sales, is on pace to be ahead of last year and I expect to see an increase in Village sales as the year progresses.

Contact me for more information; 530-913-6020 or info@GoSquaw.com