Chiwawa River Pines Home Prices

The recent article in the Wenatchee World about the court of appeals decision concerning vacation rentals in Chiwawa River Pines  has received 33 comments so far. It’s obvious that this remains a very contentious issue in the neighborhood.
Among the comments, Monte Karnes had a request:
Geordie,if you get a chance and you read this I would be very interested in your “professional opinion” on the effects of the rental ban in C.R.P. the rental ban has existed for a period of time and there should be some data available. I would like to know if values have increased, is there a demand from buyers that there be no “rentals” in a community they would buy in? The H. O. A. position is that by eliminating “rental’s” that we become a “exclusive ” community and there for more desirable property. I have worked with another realtor in the Lake Wenatchee area, we wanted to know the same thing,I had him ask five of the local broker’s the same question. The five all agreed, the ban is harming values in C.R. P. One said that, of there last three client’s they all wanted the ability to rent.(they all spoke off the record).
To answer Monte’s question I looked at single family homes that sold in the Chiwawa River Pines neighborhood in 2009 and 2010. I then compared these sales to that of the rest of the Leavenworth zipcode – including Plain, Lake Wenatchee and Fish Lake and also to sales in the Ponderosa Estates  neighborhood which is probably the most similar neighborhood in the area.
In 2009 and 2010 a total of 129 homes sold in the Leavenworth zipcode.  The median price during this time period was $320,000 with an average sales price of $387,000.
During 2009 and 2010 only 14 homes sold in the Chiwawa River Pines neighborhood.  The median price was $289,500 and the average sales price was $278,000.
Prices in the Ponderosa Estates neighborhood (which does allow nightly rentals) were slightly lower.  Nine homes sold in the Ponderosa Estates with a median price of $285,000 and an average price of $269,000.
However, this isn’t the entire story.
Lot sizes in Chiwawa River Pines are considerably bigger than in Ponderosa Estates. The lots in Chiwawa River Pines ranged in size from .35 to 1.4 acres, while the Ponderosa lots ran from .25 to .39 acres.
Similarly, the house sizes are different too.
The average home in Chiwawa River Pines was 1540 square feet in size while the average Ponderosa cabin was 1205 square feet.
Looking at average Price Per Square Foot, we see that Chiwawa River Pines houses sold for $191 per square foot while Ponderosa Estates cabins sold for $236 per square foot. 
Much of this price discrepancy comes from the effect of foreclosures in the Chiwawa River Pines neighborhood. During this time period there where 4 bank owned (REO) properties that sold in Chiwawa River Pines. In the Ponderosa Estates, there were none.
 I predicted in 2008 that a prohibition on vacation rentals would have a negative effect on prices in the neighborhood.
What do think? Do you think property values are affected by the vacation rental ban?
 
 
**********************************************************************************************************
Required Disclaimer
NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.