About Bonner County, ID

For the first time in 30 years, the Bonner County Planning Commission has updated its land use code. This has been developed over the past 2 and a half years with lots of heated debate. The end result to me is a decent compromise between two often competing interests: preserving and enhancing the environment and sustainability of growth while not infringing too harshly on private property rights.

Here are some of the highlights of the new Code change:

The 40 foot setback for Lake Pend Oreille, Pend Oreille River, and Clark Fork River will be retained. However a 75 foot setback has now been adopted for streams and rivers. This change is important for property buyers and sellers on places like the Pac River. Existing owners should take comfort in the fact that none of the changes are retroactive. However before someone buys vacant land along a river it will be important to know where the 75 foot setback will be; this can severaly infringe on the value and 'build-ability' of a homesite. There is some potential for variances for rivers not prone to regular flooding.

New vegetative buffer rules within the setbacks. A compromise was struck so that owners of new property development will be encouraged, but not required, to retain native vegetation. If they opt to re-landscape their land, owners will have to choose from a list of acceptable plants which are deemed to add to the greenery of the property.

Bonus density has been added for subdivisions and PUDs to encourage more open space. Developers are rewarded for creating cluster housing within a PUD and preserving open space including recreational amenities such as trails. A prime example of how this was accomplished was at Dover Bay Resort, which has been a good model for adding value to the general public through the Developer building a new water and sewer system, preserving wetlands and park space, and adding walking trails.

Smaller lot densities are now permitted in certain zoning districts where community drainfields or community water systems serve these lots. These lot sizes can decrease from 5 acres to as little as 20,000 square feet if urban sewer service is available.

Conditional use permits are now allowed for retreats and art studios, and it will now be easier for home based businesses to operate in a residential area.

Keep in mind that there is one full year available for the Planning & Zoning Commission to make changes to the new document. There will be many impacts to developers as well as to certain waterfront property owners.

As a professional Real Estate Broker, I pride myself in continuing to improve my own knowledge so that I can always serve my customer's interests. This is why I am in the process of reading every page (approximately 400) of the Title 12 Land Use Regulations. I will be blogging further about important changes and how they will particularly affect buyers and sellers of waterfront property.

For more information visit http://www.co.bonner.id.us/planning/plan-compplan.html

To discuss how these issues may affect your particular interests, please call me at 208-304-5665, email Rick@SandpointResortRealty.com, or visit my website: www.SandpointResortRealty.com

Believe it or not, we are still mountain biking in Sandpoint on November 22. What a gorgeous day! My buddy Collin Beggs and I rode up and down Trail 3 today, which was admittedly the coldest day I've riddent this Fall. We rode through a frozen inch of snow over the top mile. The views from the top were as beautiful as I've ever seen at around 330p today, with the sun and clouds dancing over Lake Pend Oreille creating all sorts of colors and reflections.

These are the days where I feel very fortunate to be here year round. Spring and Fall tend to get the bad rap in terms of living in North Idaho. Winter rocks with Schweitzer Mountain as Sandpoint turns into a ski town. However Summer is considered even better by many because of Lake Pend Oreille, all the festivals and events, and the perfect weather.

This Fall has been phenomenal. I think we've had about 4 or 5 rainy days since September; the rest have been cool yet nice and sunny. The mountain biking this time of year is probably the best there is, as the trails get just enough moisture to remain 'sticky' and a blast to ride. For the past month I have felt fortunate every time I've gotten out to ride, feeling like I am cheating mother nature.

Some people are just itching for Schweitzer to open. And I'm the first to say that skiing is my favorite thing in the world (next to my wife and little boy). But it sure is nice to have been able to enjoy the mountains (more so than any other season) over the past couple months.

The Panida is revving up with some great shows, and we've recently seen the latest Warren Miller flick and the new Teton Gravity Research film. All of the skiers and boarders that I saw on a daily basis last winter are coming out of the woodwork. 3 Glasses held a Dancing for Snow party last weekend. We are ready here in Sandpoint! But meanwhile I'll continue to take it day by day and just appreciate the fact that our seasons ensure an exciting and ever changing lifestyle throughout the year.

Anyone else out there enjoying Fall in Sandpoint?

Rick Evans, Real Estate Broker

www.SandpointResortRealty.com 208-304-5665

There has been alot of talk about the recent challenges facing The Idaho Club. Most notable is the fact that the preferred builder, Sullivan Homes of Idaho, has now gone out of business. Sullivan had been the builder of the Lodge Home product, which were built around the core of the resort and priced from $900s and up. It has been over a year since any of these homes have been sold.

IMI, the reputable Sales & Marketing organization that had been representing The Idaho Club, has now pulled out or been removed from the project.

Having said all this, I believe the Idaho Club will still be a successful project moving forward. Chuck Reeves and his partner, the original and current owners, have formed a real estate brokerage called North Idaho Properties. The Broker will be Brad Arnold, who was the same person managing the sales team under IMI. The existing sales team will in fact stay in place which will maintain continuity.

Another challenge that has faced The Idaho Club has been finding low cost capital in this environment, and they ahve apparently had to pay high interest rates for private financing. My sources tell me that they seem to have found an additional capital source that will allow them to complete their infrastructure plans. The core amenities should be complete by next summer. The Jack Nicklaus golf course opened up this Fall. The swimming pool, tennis courts, and spa are still scheduled to open next spring. The foundation for these is in fact already in place.

While Lodge Home sales at The Idaho Club have been nonexistent this year, their has been reasonable success in terms of homesite sales, particularly on Moose Mountain (across from the golf course, bigger lots, better views). The $1 million barrier was broken and homesites have sold for as high as $1.2 million recently.

I personally know one of the two main partners operating the Hospitality Management component of Idaho Club. This company brings with it experience in operating five star resort operations including Bacara Resort in Santa Barbara, and Pebble Beach in Carmel. The Resort Guest program has been very successful so far. This is a unique component to The Idaho Club. While this is a private club community, Lodge Homes are offered for rent for resort guests (who also have access to the golf course and other amenities). This concept allows Idaho Club to pay for its amenity base, it adds to the energy of the resort, and it provides an opportunity for homeowners to offset their cost of ownership through rental income.

The Idaho Club is the only private residential golf community in the Sandpoint area. They have strong ownership, a great location with access to Lake Pend Oreille, Schweitzer Ski Resort, and Sandpoint, and there is a core group of owners that love the resort and want to see it succeed. While times are tough right now, this resort will move forward in my opinion.

For those people who are able to disengage themselves from the emotional elements of the current economy, there is incredible opportunity in the North Idaho real estate market. This area did not experience the irrational home appreciation that many cities (ie Bend, OR, Bakersfield, CA, Las Vegas, Phoenix) went through that led to a ridiculous oversupply problem and property values that were supported primarily by investors.

Sandpoint is an area that will continue to attract people for the four season active lifestyle and small town values. Prices are extremely low relative to other resort destinations offering similar amenities i.e. Whitefish, Lake Tahoe, Tamarack. And where values did become out of reach for many people, the market correction over the past couple years has made even waterfront purchases much more of a possibility for the average home buyer.

The inventory of available homes in this market has increased. Most people that are selling in this market are in a position where they really need to sell. Not only does this allow buyers to be in the drivers seat in terms of price, it has also brought back concessions such as owner financing, seller rate buydowns and closing cost credits.

Perhaps the biggest beneficiary in today's market is the first time home buyer. For those that have kept their creditworthiness and have solid employment, there has never been an easier time to buy property in North Idaho. We have the largest selection of homes in 15 years, and the first true buyer's market in 8 years. FHA loan limits are the highest they have ever been at $271, 050, and FHA loan programs are available for as little as 3% down with good credit. There are even 100% financing programs out there now for first time buyers. What's more, interest rates are still extremely low. Once the national economy recovers and investors put their money back into stocks (rather than bonds), interest rates will increase again.

In addition, the federal government is now offering a $7500 tax credit for first time home buyers that purchase before July 2009! This credit will actually be provided with their 2008 tax return if they buy before the end of the year.

It is easy to get caught up in the negative press. But for those that are waiting around for the bottom to drop, I encourage you to get out and see what opportunities there are today. While its true that average values may still decrease, there are screaming deals available today. When you factor in today's interest rates, the tax credict, the excess supply, it just makes objective sense to get out there while you are still in the driver's seat.

To find out about foreclosures and other well priced homes, visit my website at www.SandpointResortRealty.com or call 208-304-5665.

What's with our market? In one sentence, you can sum up our experience in 2008. Those with capital are holding and waiting, those without can't get the financing the expected.

The past year has been clouded with uncertainty and a lack of consumer confidence. Unreasonable asking prices based listings not closed sale, buyers expecting fire sale pricing, first time home buyers mystified by 100% financing on Monday and 20% down required on Wednesday. We've seen buyers anxiously writing offers one day, but then never hearing from them again. However, we've also sold properties priced right within 30 days.

By the numbers.

As the affordability of homes changed (witnessed in the average price/square foot), sales volume declined. We're still a bargain compared to major metropolitan markets, but we aren't at the rock bottom prices that they once were.

Source: Selkirk Multiple Listing Service, Bonner County Single Family Residential Closed Transactions.

What does that mean for you? Is it a good time to buy or sell? What does 2009 hold in store? And what changes should we expect to see coming in the future? If I could only find a reliable crystal ball, I'd be happy to share all the answers with you.

The remainder of 2008 will probably be dominated by a "wait and see" attitude. At the same time with prices depressed, inventory at all time highs, and sellers getting more realistic, it's a great time to consider a purchase, either as an investor or as an owner occupant. Financing options are still out there including state programs offering up to 100% financing for first time home buyers.

What will 2009 bring? Our expectation for 2009 is more of the same: a decent amount of activity, reasonably stable prices, good buys to be found, and foreclosures may become a more significant component of the market, overall a continued buyer's market

Looking further our market has all the fundamentals that make this a very desirable place to live; including one of the largest lakes in the country, some of the best skiing in the region, open spaces, clean air, good accessability from the local transportation network, access to everything that metropolitan Spokane and Coeur d'Alene has to offer, and comparatively affordable housing options. The long term prospects for Bonner County and the surrounding region are excellent! Looking back on today, three to five years in the future, I think we will be shocked by the "bargains" we passed up!

What changes should you expect to see in 2009? More creativity by builders, developers and lenders. New sources of lending and new lending vehicles. Structures like rent to own (RTO) where a buyer is allowed to apply some percentage of their rent to their down payment, or stated purchase options set for 12 or 18 months into the future, private money sources may play a much more significant role, seller financing and developer backed financing options like interest rate buy downs will become more prevalent.

Another sign of the times are the mergers and consolidation seen in the local sales offices. In fact our office recently announced it's merger with Riverstone Realty and we are now Century 21 Riverstone. The merger combines our strengths and with more than $60,000,000 in combined representation, we are by far the number one office when ranked by individual agent production and second largest office when ranked in terms of overall sales.

So how does the warning on the roller coaster ride go? Remain seated please and hold onto your hats and glasses ... well the same could be said for the real estate market. Need to talk with us about your property or just need a shoulder to cry on? Log onto our new real estate blog at www.blogsandpoint.com. We look forward to hearing from you.