It was a very active Memorial Day holiday weekend at Gray’s Crossing. So, here is an update:
LDK, the owner of an 81-lot portfolio at Gray’s Crosisng, show 14 home sites closed and 12 pending YTD. 10 of these pending sales occurred over the weekend and I expect to put 3 or 4 more into contract by the end of the week.
If you look to the MLS in order to include other resales as well as the 81 portfolio, you will see a total of 24 sales closed YTD.
The 81 portfolio consists mainly of golf course frontage homesites and thus the average price for the community has increased dramatically over the last few months. Here is a quick breakdown of where they lie:
• Woods: 20 sites total – 12 remaining – The average sales price of the 5 golf course homesites is $92,000. The other 3 non golf course sites that were closer to Highway 89 sold early on between $40 and $50K
• Ridge: 11 sites total – 4 remaining – The average sales price of the 7 Ridge lots is $73,666. This includes the sale of R46 – close to Prosser Dam road, as well as R15 close to Prosser Dam road both at $50,000.
• Meadows: 50 sites total – 39 remaining – The average sales price in the Meadows is $80,000. This is a great example of how we have built value in the last 3 months literally from left to right or west to east. You will see the low sale price of M2 at $49K build value to the high sale price of $126,750 for M31. From M2 at $49K to M9 at $95K, the sale price increases by $46,000. It runs up $5,000 to $10,000 per lot all the way to Golf Club Row where it has increased by $77,000. This really shows what a premium is placed on sunny level homesites on the golf course within walking distance to the amenity core. The buyer of M31 already has plans that he is tweaking and wants to start a foundation this year for his primary residence. It is also interesting to note that M55 and M56 sold in the last two years when prices were down, for $79,000 and $80,000, as they were two of only a few golf course homesites on the market.
I would say that 70% of these buyers are end users planning to build a primary or vacation home in the near future. A few of these buyers are local to Truckee with a majority of them coming from the Bay Area. Most of these buyers have families and seem to be under 50 years of age.
I believe the draw to Gray’s Crossing as well as all of the land sales has to do with the incredible values and overall desirability. This is also driven by the lack of inventory under $1.5M as well as the quality of what little inventory does exist. The price is also expanding between Gray’s and Lahontan as there are currently only 3 homesites in Lahontan under $100K and only 9 under $200K. At Schaffer’s Mill, the 1 resale on the market is listed at $250K and the developer inventory starts at $265K.
As you all know, Gray’s Crossing, especially PJ’s restaurant, has been gaining popularity as the outdoor spot to dine and it really defines what the community is all about. If you compare it to other communities in this price range, it is hard to beat Gray’s. With sunny and level golf course homesites close to the amenity core, as well as an incredible restaurant and fitness center included as part of the HOA, it is easy to understand the success Gray’s Crossing has been having in 2013.
Over the last week, the prices have increased at least $10,000 to $15,000 per site and, with the exception of a few homesites, we will not have much inventory left under $100K.
You will see two more homesites hit the MLS this week with R24 and W30. R24 will be listed at $120,000 and W30 will be listed at $100,000.
Consumers looking for the least expensive homesites should consider these properties in The Woods:
• W77 or W76 – listed at $50,000 – green belt in back
• W80 – listed at $55,000 green belt in back
• W138 – sleeper lot with peek views of Mt. Rose and green belt in back. Not listed but I gave out a price of $65,000 this weekend to numerous people and that price is good until this Friday the 31st.