Exciting News at ESCONDIDO

Bob Dudley, from Escondido, guest posting. 

While the economic downturn has slowed many markets in the Hill Country, here on-site, sales of individual lots and available residences have continued and Escondido has reached a welcome point of community maturity, as well as a very stable position based on Member growth and with new Equity participation.

Here are some of the exciting events, new offerings and announced happenings that will soon be taking place in the Escondido community:





New Dining Room



1. Our Clubhouse facility is near completion and with the final addition of furnishings and enhancing the Spa, Fitness and Dining amenities, it should be fully operational, by July 4th. The stunning structure will be getting a further $4.6m of additions and improvements between now and its opening.

2. The new Equity Partnership has announced plans to be investing a further $10m to $12m of capital in Escondido to complete the full compliment of promised amenities, add new ones and fulfill Escondido’s Founding Vision – to be the Best 2nd Residence and Getaway Community in Texas. Members approved this by a send-in Vote of 343 to 1. Closing on the Equity Partnership transaction is set for March 18, 2011.

3. A Residence Center offering is in the planning, with elegantly furnished and appointed one, two and four bedroom unit shares to be sold. These will provide for the combination of superb on-property accommodations with full membership privileges, while in residence. Share owners, their families and guests will be able to partake of Escondido’s recreational and lifestyle option.


4. Escondido’s Fazio Course enjoys a reputation as one of the Southwest’s better courses and amongst the finest of member clubs. Our Lake Club on a cove off Lake LBJ is known to be one of the premier pool and cabana sites in the country. Come learn about the plans to enhance these amenities and construct new ones, with a focus on new choices for families and children.


5. Southern Living Magazine selected the Escondido community and its architect, Michael Imber, to design, build and then host their very popular annual presentation of an Idea Home, for 2011. Ten to fifteen thousand visitors are expected to visit the Escondido community during the sixty day preview period, during the coming summer. We have properties starting at $195,000 in our Village area, fabulous, Estate lots by the golf course from $235,000 as well as prime well-treed golf fairway sites starting at under $400,000., large 4 bedroom residences starting at $1.25m and waterside lots with boat dock rights starting in the $700’s.

6. March 1st, some additional assets will be transferred to the non-profit Club Corporation, owned by Escondido’s Members. The value of an Escondido membership, one comes with each property purchase, will then rise to a new defined value level of $120,000. The maturity and stability of the Escondido Club and community are manifested in these escalating figures of the defined Escondido Membership value, since 2004. Some will act to become Member’s before values rise again, with the scheduled transfer of the Clubhouse assets, later in 2011.

7. There are several residences currently under construction, with several additional construction starts scheduled over the next ninety days. The infrastructure is nearly complete for our Lago Escondido community, one residence with stunning multiple water views is nearing completion on the Lago site with three more new homes in various stages of construction on this lovely Big Water sited community. Investments in the erection of second and primary homes in Escondido are but further evidence of the stable position that Escondido has reached. We have a wonderful variety of property for sale with a variety of fairway, creek-side, big-water or a lower maintenance smaller Villa or Casita sites available for purchase, some at economical price points.

Bob was kind enough to share photos.  Check out my web site or Facebook page for more.

Current REAL ESTATE Market Anaylsis, Horseshoe Bay, Marble Falls, & Meadowlakes

The months of March through October are usually our highest volume sales in the Highland Lakes of the Texas Hill Country. A quick analysis for the previous twelve months’ home & lot sales for Horseshoe Bay, Marble Falls, & Meadowlakes (my primary market area) might be of interest. I’ve prepared spreadsheets that sort Oct. 2009 to Oct. 2010 sales by city, by category, & in some cases, by subdivision. If you'd like copies, just send me an e-mail: JanLBusse@Gmail.com & I'll gladly share. My current listing clients get these regularly.

If you compare this year versus last year, our quantity of sales are almost flat. Anecdotally, however, my buyers seem to be asking two very important questions they were not asking before:

1. What's the best DEAL (value) for the money regardless of price, category, or location
2. How much more can I get if I move my price point UP to the next "xxx" number of dollars

During the 2008-2009 sales year, our market sold almost exclusively houses under $300,000 and over $1million. This year, we see the BEGINNING of mid-level ranged houses selling again. Yes, they must be great prices, exceptional properties, or exceptional values -- HOWEVER THEY ARE SELLING AGAIN.

• “Single Family & Condos Sold” are heavily weighted toward NEW construction, regardless of city or category.
• Most buyers resist remodels in our market, especially when new homes are available at reasonable prices, so older home sales have been hardest hit. Subsequently, they may also be the biggest opportunity for bargain hunters.
• Until recently, there have been a number of new construction foreclosures on the market, which drove down prices even further. This is especially true for condos & townhomes
• Today, there are fewer “single family, distressed” properties available & I don't foresee many more showing up in this category any time soon.
• Condos, especially “The Waters,” may see still more foreclosures this year
• Golf course homes, which were also very slow selling have begun to see activity again, especially in new construction & higher end houses (those asking over $500,000)
• Another surprise for our market, is “Waterfront Single Family Home Sales” have slowed, while inventory is very high. There are currently 88 waterfront homes listed in our MLS as “for sale” in our three cities.
• My OPINION is that there are fewer motivated sellers in that category
• The oil business has settled down to a more normal level of business, & in TEXAS, oil related businesses supply an unfair share of our highest end buyers
• Currently there are only 2 waterfront condos listed as “pending” in our MLS
• Currently NO waterfront houses are ”pending” in our MLS.

Regarding home sales, the market seems to be holding its own or even trending up, based on price points paid this year versus last year.Whereas two years ago buyers were not buying at all, today there are qualified buyers, looking for bargains in most all categories.

When buyers ask me where the best STEALS are, without fail, I tell them "buy dirt!" Lot sales have been almost non-existent in the previous 12 months, & they show no immediate signs of improving. Serious discounts are available!!!

• Savvy investors are beginning to inquire regarding lots again thanks to the news about the new county hospital & the recent positive changes at Escondido & Skywater
• Builder’s profits are greatly affected by land costs, so those that can bank property are looking for particular bargains.
• From talking to several Austin & San Antonio builders, I’ve been told the land costs there are rising again, so I believe our market will soon be viewed as the GREAT VALUE it is.
• Until most of our newer construction single family inventory is sold, land sales will like stay very slow unless sellers are willing to provide deep discounts to buyers
• It is often cheaper to buy pre-existing new construction than to build new
  

Every month, I prepare spreadsheets & average the sales numbers by category. Everyone understands the averages are arbitrary. Trying to compare locations, finish outs, age of the homes, etc, is impossible. But one very important average struck me: in almost every instance, the average percentage paid for a property, compared to seller's asking price was 92% to 95%.

Today, when there are so many bottom feeders, sellers are afraid to drop their asking prices close to what they'll actually take, but they NEED TO RE-THINK THIS STRATEGY.

If the price has too much negotiating room, buyers won't make an offer, but go where they think they can negotiate with someone who's more motivated and/or realistic.

Overall, I would not say the immediate future is rosy for sellers. It remains weighted heavily for buyers, but overall sales seem to be trending slowly up. There ARE many buyers willing to purchase if the value is strong enough. It's not strictly about PRICE, but the VALUE must be apparent in every transaction.