Montreux 2MThere have been resales of 3 housed for over $2,000,000 in Montreux so far this month.  Who buys $2M houses in Reno?  One was a move up buyer from another Montreux home, and two were RCCOTHs (Rich Californians Coming Over The Hill, though one was actually from Seattle).

In a region where the median income does not support the median home price of $285,000, I suspect many if not most new home buyers are coming from out of the region.  Lennar has sold 10 homes at their Plateau subdivision in Somersett.  Pricing ranged from $341-436,000 with the average at about $385,000, or about 135% of the median.  2 homes appear to be investor owned.  2 homes are move-up purchases.  6 were buyers making their first home purchase.  I suspect all 6 were from out of state.

The residential portion of the land purchase around Cabela’s is already on the market (price not disclosed).  At up to 284 lots at 6000 SF, if feels like Lennar bait.  Financing is incredibly tough to get on new construction, so I don’t think the local builders will be in the running.

When the Pennington mansion sold for $8,000,000 last month, I commented that it was probably a land deal.  7.25 acres in blue has already been put on the market for $2.5M and could take up to 30 houses in a PUD.  That might be attractive to local builders.