Stop Waiting for the Market To Drop- The Time to Buy Resort Real Estate is Now

This really is a great time to buy a home. At least in Sandpoint Idaho, all is not gloom and doom. In fact if the national media wasn't constantly reminding us of how bad it is supposed to be, you would think the real estate market is doing just fine.

There is definitely NOT a wholesale tumbling of prices in our market, but on the same hand the savvy buyers are getting tremendous values. The key is that certain sellers are in a position that they either have to or really want to sell. Identifying who is serious about selling is an important component right now. There is certainly a great deal of uncertainty in the economy today, and those people who are able and willing to buy should and are being rewarded.

I recently had a cash buyer that bought waterfront property at an almost 50% discount from the listing price. This was because the seller was motivated at the time, the buyer was ready to pay cash, and the seller needed the cash in order to move forward with other endeavors. I have a couple of buyers at Schweitzer that have pending deals where they have finally been able to buy their dream ski home at an affordable price. I've got sellers that are motivated and ready to make deals.

Having said this, I am still hearing many people talk about waiting a year or even two for the market to drop further. People have been asking me 'what percentage the market is down'. Trying to determine if market prices are going up or down is very tough to do unless taken on a national scale. In a smaller market like Sandpoint, or specifically at Schweitzer Mountain Ski Resort, the average sale price is easily 'schewed' by one or two very low or high sales. And different homes are bought and sold each year, so you are not comparing apples to apples. For example last winter from Nov 1 thru Feb 1 the average sale price at Schweitzer Mountain was $388,000. This winter the average price for the winter has been $478,000. Does this mean the market has gone up? Not necessarily; it simply means some higher priced real estate has closed to distort the average. The buyers in the mid to high end of the market seem to be benefiting the most from decreased values, from my recent experience.

Our area of North Idaho is a resort destination with great skiing, a phenomenal lake, beautiful mountains, and a great lakeside town. Sandpoint is a place where people want to visit and to live, and there will always be a demand as long as the natural amenities are here. Real estate transactions are indeed taking place, and the people with the means to buy now are going to be very happy. One caveat- they will be happy if they aren't caught up in trying to perfectly time the market in order to flip in a year or two.

Even if someone is able to buy for 10% less in a year, mortgage rates are unlikely to get any lower. The net cost is just as likely to be greater when factoring in financing. For those thinking they can negotiate a better deal next year, that may or may not be the case. The only way to know when the bottom has hit is when we are looking back at it.

There are definitely fewer buyers in the market today, however those that are here tend to be much more serious and able to purchase. My sellers that I represent are more flexible than they have ever been. For resort property in particular (which is what I typically represent), sales are taking place when the owner is motivated and realistic. There is no reason to think that these properties will still be on the market a year from now, if recent activity is any indication.

As I've noted in a previous post, our office at Tomlinson Sandpoint Sothebys set an all time record in closings for the month of Dec-Jan. We have many smart buyers that have been intelligent with their investments that are looking at the prime waterfront, resort and ski property. If you'd like to see what is available or get my recommendations on the best pure values in a particular area, please call me at 208-304-5665 or search property at : http://www.sandpointresortrealty.com/propertyfinder.html

My personal philosophy for buying real estate has always been to invest in lifestyle, in locations that my family and I will enjoy. What is the monetary value in having that resort home that you have worked so hard for. Maybe you could wait a year or two to buy that same property for 5% less. I think its important to remember that you are also foregoing the personal benefits of enjoying that lake cabin or ski home while waiting on the market to drop.

http://www.SandpointResortRealty.com