By Barry Denton
What a difference we saw in 2016. What started off as “slow ’16” turned into “sweet ’16” with a flurry of activity the last half of the year, especially in the fourth quarter. The sales in the second half of the year led to $107 million in total real estate activity in Cordillera Ranch for 2016, surpassing the $100 million mark for the second consecutive year.
Historically, we have two periods of the year with moderate sales activity. The first period arrives with a post-Holidays slow-down right after the first of the new year. Early 2016 was no different than years past, and a wetter than usual spring contributed to an extended period of moderate sales. However, the second slow down (mid-to-late Summer) never occurred. The sunny skies of our Texas summer brought with it searing hot activity that continued to heat up through the end of 2016.
Home sales soared in October/November with nine homes sold/closed and another five homes under contract or pending during that period. This run on homes lowered the resale home inventory in Cordillera Ranch to less than 30 homes on the market for the first time in almost 10 years. Considering we have over twice as many homes (roughly 800 total) today as we did 10 years ago, this has reduced our percentage of available home inventory down to a tight supply of under 4% of total homes. A healthy real estate market is typically around 10% of available homes to total inventory; Cordillera Ranch has consistently had a tighter supply and thus overall stronger real estate market than industry averages.
We also had two Di Lusso Villa resale homes in 2016 (not counting new construction starts), which included the first Di Lusso Villa spec home which sold prior to completion. Look for a new Di Lusso Villa Spec in 2017!
The average price of resale homes sold in the last year rose from $940k to $1.11 million. That’s a 15% increase! The average price per square foot for resale homes also rose from $215 / SF in 2015 to $230/ SF in 2016. With a run on homes under $1.0 million in the last 18 months, the number of resale homes listed under $1.0 million has flipped from two-thirds of the total inventory, to now one-third of the total number of resale homes on the market. Homes listed by CR Realty greatly expanded in 2016 and on a price per square foot basis, our listings sold for 20% higher than non-CR Realty listings. By year’s end, just over 52 homes (average of one per week) totaling over $60 million will have sold. That’s 10 more homes than in 2015 and $20 million more in total volume. We certainly live in a valued neighborhood!
But it wasn’t just third and fourth quarter home sales that erupted; lot sales took off as well. The second half surge helped push lot sales to 58 for the year, which is in line with 2015 sales. There was a tremendous customer focus on premium properties related to hilltop view, golf course frontage and Di Lusso Villa properties. Six recent Bears Ridge (our newest Clubs Village promontory) lot sales leaves us with a few select remaining view homesites in this gated enclave. Golf course frontage and off course home sites along hole #11 have been well received since inception with a 50% absorption rate. And an influx of buyers looking to down size or “right size” has created a run on Di Lusso Villa lots. The golf course frontage and golf course view lots along hole #3 with panoramic views to the north across the Guadalupe River Valley have been especially popular. Only one Di Lusso golf course frontage lot remains!
The fourth quarter of 2016 also saw the Grand Opening of The Springs of Cordillera Ranch. Lot sales are well under way in this first phase. The Springs is a continuation of the Riverwood/Sunriver/River Crossing neighborhoods with the streetscape and utilities of the Clubs Village. It offers a diverse mix of 1-acre to 3-acre+ wooded, view, equestrian and creek-front properties ranging in price from $100k to $300k+, all with central water, wastewater, propane and curb and gutter streets. In addition, interconnected walking and bike trails, nature trails, horse trails, Panther Creek Park (similar to Swede Park) and The Springs Sports Park featuring sports fields and basketball court are all in store for 2017. If you haven’t done so already, venture out the Rio Cordillera/3351 gate and take a drive through this just-completed neighborhood. You’ll be impressed with the dramatic arrival created for both the new and existing community entrances. The nighttime illumination of the intersection’s landmarks and landscape is equally stunning. Ultimate plans for The Springs of Cordillera Ranch call for over 1,000 future homes along multiple hilltops, spring-fed creeks and three miles of Guadalupe River frontage.
If it seems like home construction in Cordillera Ranch has continued at a torrid pace for 2016, you would be correct! With 40 homes in design review, look for the number of homes under construction to increase substantially in 2017 with half of those homes under construction in Clubs Village.
As our community grows, so too grows our development, construction, management and real estate entities. 2016 saw the groundbreaking of our Vista Visitors Center which will house CR Realty, the Cordillera Ranch Property Owners Association, Pasadera Builders and the DH Investments management and development operations. Consolidating these offices under one roof will provide benefits to the sales, development and POA staff, as well as community residents.
Thanks for your continued support and shared enthusiasm in making Cordillera Ranch the preeminent Hill Country lifestyle community again in 2016. Let us know how our full service real estate brokerage services can help you benefit from the aforementioned statistics in buying or selling your land or home. Our on-site sales team consists of Cordillera Ranch residents, property owners and members. No one represents the Cordillera Ranch lifestyle better. Cheers to a remarkable 2017!
2016 REAL ESTATE RECAP
54 Homes Sold
Average sales price = ~$1,111,000
Average price per sq. ft. = ~$230
High sold price = $3,575,000
23 Homes sold over $1,000,000
31 Homes sold under $1,000,000
Total volume = ~$60,000,000
58 Lots Sold
Average sales price = ~$260,000
High sold price = $650,000
Total volume = ~$15,000,000
27 New Home Starts
Average Price = ~$1,185,000
Average Size = 4,500
Average Price per Square Foot = $270.00
Total Volume = ~$32,000,000
2016 Totals = 139 Transactions = ~$107,000,000