Sandpoint, ID

This past week was the semi-annual Realtor tour of Schweitzer listings, where I had the chance to preview 50 out of the 70 listings on the mountain. I have a number of prospective buyers that have asked me what the best deals are and where I think the market is heading. Here is my honest assessment of what I believe are the best values in each price range:

Low-end - This is a great time to pickup a condo within walking distance to the village at a price that is unheard of for most ski areas. There are a handful of 1bdr and studio units available in the Black Bear (located next to the St Bernard), with pricing starting at $175,000. Unit 104 is probably the best value at $179k, 474 sft with fireplace, main level. However with 5 of these on the market, a buyer could probably pick one up in the $150 or 160s range. Even lower priced are the Alpine condos (2 at $169k) and a studio in Die Schmitterling for $159, neither of which is quite as good a location as Black Bear.

For 2 bedroom condos in the lower price range, the Selkirk Lodge actually has the lowest prices on the mountain starting at $279k. This is true ski-in, out, in the ski village, and the rental returns are typically twice that of a comparable 2 bedroom up the street. Each condo features a separately locked off hotel room and hotel suite, which can be rented separately or tied together for a 2 bedroom suite. The challenge with the Selkirk Lodge is that it is a condo hotel and financing has been difficult. Mountain West Bank however does offer 75% financing with good credit and verified income. My favorite Selkirk Lodge unit is 426/428 priced at $304,900. This is a nice corner unit with a hot tub, views of the village and partial lake views.

For those wanting newer, nicer, and larger accommodations, I would recommend both Boulder Ridge and Boulder Springs. Boulder Springs is below the village on Slalom Road (ski access via Musical Chairs lift). There will soon be a new bridge crossing the nearby creek which makes the ski access much easier, however you still have to deal with the 2 person Musical Chairs which can be backed up on weekends. These are brand new condos with very nice interiors, including stone fireplaces, granite counters, an open and modern interior, and large balconies. At 1581 square feet, with 3 bedrooms, the price of $399k is a good start. The most recent sales have been $425 and $435k.

Boulder Ridge is located further from the village off Ullr Drive, at the entrance to The Ridge development. The distance is the drawback, however there is a new free shuttle service that can bring residents to and from the ski hill. A total of 19 condos are being built by Dave Finley out of CDA. At 1918 square feet, 3bed, 2 bath, the price of $389k offers the best value per foot on Schweitzer. Interiors are very nicely done and again offer one of the rare opportunities for brand new modern construction around the mountain.

A single family home that is worth looking at is 130 Snowplow Road, recently reduced from $525k to $499k. This is a timberframe single family home on ½ acre (unusual for Schweitzer), with a 2 story open floor plan and loft, 3 large decks, and nice views of Lake Pend Oreille. While below the village, it is possible to ski to this house and of course the new shuttle system makes it more convenient than before. Another single family home located on The Ridge got my attention. This is 2500 sq ft, priced at $565,000, with a very nice brand new interior - address is 20 We All Ski Road.

The Cornice complex has a couple of nice units. #207 is a 3/2, 1300 sq ft condo with a loft, huge jetted tub, high ceiling, and garage, priced at $385k. Be careful with this complex however as they do not permit short term rentals.

For other accommodations that are in or adjacent to Schweitzer Village, there are still 3 units in Pinnacle Ridge on the market. The lowest price is $548k for 2/2, 1272 square feet. These units are not brand new and aren't exceptional on the interior, but the location next to the village may very well be enough to attract some buyers. In my opinion a buyer should try to secure this for closer to $500k.

A better value compared to Pinnacle Ridge is Copper Ridge #301, with an attractive price of $395,000. Located just above the village, Copper Ridge is also right on the Crystal Springs ski trail offering true ski-in/out access and incredible lake views. These condos are just one year old with nice interiors, and it offers 1041 sq ft, 2/2.

For those that want the very best, my new listing in The Spires PUD at 96 Tall Timber Road is perhaps the only home that can justify the 1million plus price mark. At $1.295 million, this 3400 square foot single family residence set at 5200 feet with phenomenal lake views and a prestigious address in The Spires community. The quality of construction, the ski access, and The Spires community put this house in a unique position. While 1.295 is a relatively high price on Schweitzer, this is without doubt the nicest home on the market right now. For someone that wants the very best, there are no options that really compare.

Another good option for a slightly lower price point is The Bornholm Lodge, a fourplex located next to The Glades just below the village on Northwest Passage. These are roughly 2700 square feet, with great lake views, and adjacent to the village. The Glades condos located next door are not nearly as nice; one of these is on the market at the same price of $899k. The Bornholm townhomes went on the market a year ago at $1.2 million, which was obviously overpriced in this market for attached units below the village. However they are by far the best value in the 800 to 1mil range, and a buyer now would be in a position to get a fantastic buy.

In summary, there are still many listings at Schweitzer that are overpriced. However there are also some fantastic buys out there. I do not see the bottom falling out in this market, so if someone is waiting around for this to happen they may be disappointed. The key is to stick to your guns as a buyer, know what you are willing to pay, and don't be afraid to make some low ball offers. It is hard to know the negotiating position of an individual seller, so if you can select a handful of places that you are interested in it would be easy to find out who is truly in a position where they have to negotiate.

For further analysis of property at Schweitzer please give me a call or visit my website to search for Schweitzer specific property. www.SandpointResortRealty.com rick@sandpointresortrealty.com 208-304-5665.

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.

New pricing has just been made available for The Spires at Schweitzer, an 80 acre planned development located off the South Bowl of Schweitzer Mountain. The seller has just announced that he will offer a few lots as 'loss leaders', with pricing starting at $225,000!

The Spires is the highest elevation of any neighborhood at Schweitzer Mountain. Every one of the homesites offers stunning views of Lake Pend Oreille. The community has been very well-planned to preserve not only the view corridors but also ski access to all homesites. Each site is arranged so that the building envelope is essentially the entire lot - the common space has all been built in to protect these view corridors and create a very well laid out community.

Access to The Spires is at the end of Mogul Hill Road, where it turns into Tall Timber Road. There is a grand entrance and a majestic feel as you drive past the first homes. The best part of this community is the incredible ski access from the South Bowl of Schweitzer. From the 'Triple Chair' you ski past all the South Bowl chutes and drop over the boundary lines of Schweitzer. This takes you through some of the best powder runs anywhere in what locals refer to as 'Reservoir Run'. After skiing maybe 1000 or 1500 vertical feet you will find yourself at The Spires community.

The developer has also recently been able to purchase land that will now allow him to create a groomed ski trail from the Spires community that will connect with the Crystal Springs trail system back to the village. This will allow Spires to be marketed as true ski-in/out, by the definition of what an intermediate skier can access. Currently the setup is ideal for advanced skiers and offers the perfect powder run at the end of the day.

While there is quite a bit of vacant land on the market around Schweitzer, most of this has essentially no design guidelines and controls to ensure value into the future. The Spires is one of the best planned developments at a ski resort, developed by a local skier that will continue to be involved for the long run. There is already quite a close-knit community of owners at The Spires. all of whom get together frequently for apres ski get togethers.

If you are looking to be a part of a fantastic development that will be the premier address at Schweitzer for years to come, now is the time to get involved. Give me a call to schedule your personal ski tour!

Rick Evans

www.SandpointResortRealty.com