Mesquite Insights

In today's market place, businesses must plan and adapt to the changes that the future will bring, and the Eureka is doing just that.  They are doing what must be done to meet the competition head-on - including the slow-moving Solstice Project. 

Eureka's expansion of the casino, building improvements and changes to the buffet are nearing completion.  If you haven't seen it recently, stop by and take a look.  You will be impressed.  And the casino looks great.  Thousands of additional square feet were added to the gaming area bringing more slots and video poker machines and....better ventilation.  And the facelift to the exterior of the building makes the Eureka even more attractive!

Future expansion possibilities include a new hotel tower, an RV park, specialty shopping, and perhaps bungalows for special guests.  It won't happen overnight, but when it has been completed, the Eureka stands to be the very best casino in town.  Look out Randy Black and Solstice!

To understand the past, and to have an idea of where we are headed, we must look carefully at the records.

Begin with information from the Mesquite Listing Service (MLS).  It provides a valuable service to many people including: Realtors®, clients, lenders, and appraisers. Very useful information is available regarding active listings and historical data which can provide insight to trends in the market. However, the information contained in the MLS is only a subset of the total Mesquite real estate market activity. Specifically excluded may be information about owner sales (FSBO) and new construction sales by certain builder/developers.

For example, consider 2007 sales information. The MLS reports 235 sales of single family homes during the year of which 108 were new homes. Among the new home sales were 18 from Sun City Mesquite. Though unconfirmed, we have been told that sales at Sun City Mesquite exceeded 300 new homes – a huge disparity from the 18 homes noted in the MLS records.

But, as previously noted, the MLS data can provide a valuable insight into market trends (in particular, home sales and prices).

Sales of existing homes fell throughout the year – averaging over 13 homes per month through June, and then falling to an average of only 8 homes per month during the last 6 months of the year. At the same time, reported sales of new homes held very steady averaging 9 home sales per month. If all the new home sales from Sun City Mesquite could be included in the MLS, it is very likely that we would find a substantial increase in new home sales during the final 6 months of 2007. But what might contribute to the decline of existing home sales and an increase in sales of new homes?

Real estate prices are very much influenced by supply and demand. Some people have recognized this. With the downturn in the market, they have been the price leaders for local real estate (lower prices – increased demand - and their properties have sold).  Keep in mind that buyers will always attracted to the “best” buys.

Throughout 2007, the average selling price of new homes trended downward from over $185 per sq ft to nearly $149 per sq ft in November/December. However, the selling price of existing homes remained in a narrow range – recently near $175 per sq ft.  One should question why the average price a home on the MLS is now over $200 per sq ft, when many homes have recently sold for under $150 per sq ft.  Could it be that pricing has been a significant contributor to the slowdown of existing home sales in Mesquite?

But don't be discouraged!  Don't be concerned about the list price and worry less about insulting the seller.  Make your offer - and make it less than the asking price - possibly substantially less!  Only when buyers and sellers negotiate on pricing will we know what the true market value is!  Happy buying!

Mesquite is proud to be a golf resort and destination get-away.  There are 6 championship courses to play (The Palmer and Canyons Courses at The Oasis GC, the popular Wolf Creek GC, Falcon Ridge GC, Casa Blanca GC and the Palms.)  In addition, there is a neighborhood course (Coyote Willows) that offers several holes of challenging golf but on a shorter layout.  Coming soon will be another championship GC at Sun City Mesquite - due to open in 2009.

And Mesquite popularity grows because of tremendous publicity.  The Big Break filmed last year during the heat of the summer had a huge audience on The Golf Channel, and many of those fans have traveled to Mesquite to experience the challenges of the Palmer GC.  And the Long Drivers have been coming to Mesquite annually for the Long Drive competitions in the spring and fall.  The fall Championship is held at the Palms GC and is telecast on ESPN on Christmas day.  Be sure to watch!

For those who want to experience our great golfing, there are several options.....many golf packages are available that include hotel room and golfing at one or more local courses, and these continue to be very popular.  You decide where to stay and play!  For those who will spend more time in Mesquite, consider a Mesquite Golf Pass.  The 2008 golf pass can be purchased for $115 and offers the holder 5 free rounds of golf (dates may be restricted) and substantially discounted rates at our local courses (except Wolf Creek and Coyote Willows).  And most recently, a limited number of privately owned condominiums have become available for short-term rentals (many condo owners will also arrange for tee times and other activities if asked).

For more information about Mesquite Golfing, there are links to the local golf courses on my web site.  Also, feel free to contact me for more information about the Mesquite Golf Pass or various lodging options. 

New Year's Resolution:  Always Great Golfing!

We are constantly bombarded with numbers - social security, PIN, phone, address, speed limit, price per gallon, amount due, income, taxes, and on and on......Numbers can be misused and misunderstood, and the information they impart changes over time.  Look at trends.  They are most important.  The key is to understand the numbers - to interpret what they mean and understand how they can and will influence your decision making!

This holds true especially for Real Estate.  Use the numbers to your advantage.  For instance: January 1, 2008 finds 363 properties (single family homes, townhomes, and condos) on the Mesquite MLS, but this includes 40 new single family homes and 16 new townhomes and condos.  So you can see that the number of resale properties is actually only 307.

Today, lets look specifically at Townhomes and Condos.  There are 172 properties available - including 16 newly constructed properties.  The average list price for a resale townhome/condo is $195,285 ($158 per sq ft).  For new construction, the average list price is $256,619 (also $158 per sq ft).

In 2007, 188 townhomes/condos were sold of which 54 units (28%) were new construction.  The average selling price was $191,381 ($161 per sq ft). 

But let's see what the trend is in the market and let's look at the last 6 months of 2007.  During this period, only 52 townhomes/condos were sold and only 5 were new construction (less than 10%).  The average selling price was $181,570 ($150 per sq ft).    

Now let's look at the last month.  There have been 3 townhomes/condos sold - all were resales.  The average selling price was $173,933 ($129 per sq ft). 

The trend for townhomes/condos - fewer sales (and substantially fewer sales of new construction) - and lower sales prices - down from an average of $161 per sq ft to most recently $129 per sq ft.  Realizing that the average list price for townhomes/condos on the MLS is near $158 per sq ft., this means that many properties are overpriced for today's real estate market - by almost 20%. 

When you find a property that fits your needs, wants and desires - make an offer.  Because many properties are overpriced for today's market, don't let the list price limit you on the properties that you should consider and can afford!  In today's market, you must do your homework!  Work with your agent to determine the true market value of the property - consider features, location, condition, time on the market, market trends and of course recent sales of similar properties.  You must understand where the market has been and where it is going.  Then make your offer.  

It would be my pleasure to provide you with more information and insight into Mesquite's real estate market.  Simply ask.  I will do my best to provide you with the information you request - free and without obligation. 

Happy New Year!