Sandpoint, ID

While my wife and I are working with Dover Bay Development to build our Cottage at Dover Meadows, we decided to go ahead and move from downtown Sandpoint to a rental property at Dover Bay. We found a Bayside South condo and have just settled in this past week. When I got a text message from my wife today saying how happy she was that we were living out here, I knew this was a good decision.

What we really like about the Bayside condos is the spacious, open feel and the incredible amount of natural light that comes in. The ceilings are approximately 12 feet high throughout, which really gives you a spacious feeling, not to mention the fact that the Great Room and the Master Bedroom are very large for a condo. There are windows that go almost from floor to ceiling all the way around three sides of the condo. With all Bayside buildings having just 4 units, everyone is a corner unit benefitting from the windows on both sides.

The other thing we are already noticing is the incredible efficiency of new construction and new appliances, in comparison to the large older home we were in downtown. The entire 1380 square feet heat up in minutes and the house stays warm through the night.

The convenience of the Syringa mountain bike trails is certainly a huge plus for me. I can actually access miles of single track trails in about two minutes. The paved bike trails throughout the resort are great for roller blading, biking, etc.

Its fantastic to have the waterfront Cafe available essentially next door to us for breakfast and lunch, or last minute conveniences from the Market. And then there is the Fitness Center, Pool, and Jacuzzi that are open year round.

We are looking forward to the winter months when we will take advantage of all the trails for cross country skiing (from our door step), and snow shoeing on the adjacent hills at Syringa.

While Dover Bay has definitely quieted down with the passing of summer and boating season, there is just enough activity out here to maintain a sense of community. When we first arrived on Sunday with our moving fan, we actually had two random people come up and offer to help us unload. Its a neat environment here where you talk with your neighbors and everyone is on a first name basis!

Our company, Tomlinson Sandpoint Sothebys, continues to sell more real estate than any other agencies in Bonner County. Through the third quarter of 2008, Tomlinson Sandpoint Sothebys had sold $92 million in real estate, for a 23.6% share of the total Bonner County market. This is with just 16.6% of the total number of Realtors.

Sothebys has maintained roughly 1/4 of the total market share year after year, with a particular emphasis in high-end properties including waterfront and resort. In fact our Sothebys office is the exclusive representative of most of the resort projects in the area, including Dover Bay, Seasons at Sandpoint, and Schweitzer Mountain Real Estate (Trappers Creek). This is due in large part to the international network that Sothebys benefits from and the exposure we are able to give to these types of recreational properties.

Our buyers are coming from all over the country and the world; when they compare the relative values in Sandpoint to places like Lake Tahoe, Whitefish, etc. we get alot of interest. For example waterfront property on Payette Lake near McCall and Tamarack, Idaho costs $20,000 to $30,000 per front foot. Waterfront property on Lake Pend Oreille in Sandpoint typically averages $7000 to $8000 per front foot, for a much more desirable lake!

Another important note is that our $92 million sold through Q3 of 2008 is actually ahead of the numbers at this point in 2003, a year in which everyone here thought the market was fantastic and which had been the best year in the company at that time. 2004 through 2006 were anomolies, and we are back to more reasonable market activity.

The second place real estate company in terms of market share is Evergreen, at 12.26%; third place is Century 21 at 10.48%; fourth are For Sale By Owners at 5.63%; Riverstone is at 5.55%, Lakecountry at 3.78%. The balance of companies in Bonner County have less than 3.71% sold, including Coldwell Banker and Exit Realty.

What does this mean to you? As a Seller, your property is more likely to get the most exposure by Listing through us. As a Buyer, you will also benefit from our collective knowledge and representation in the market. Our Realtors cooperate very well with each other, continually promoting one another's listings and holding weekly office tours of all new listings.

In the Sandpoint area, the most desirable property is unquestionably 'waterfront'. All else being equal, you will typically pay more for waterfront, with big view property and ski property being the next level of pricing. Some may find it interesting that waterfront property is so valuable and in such high demand in a four season destination, where the summer season is truly the only time that most people are in and on the water. This has alot to do with the fact that Sandpoint (and the Northwest in general) is in such high demand in the summertime, with the resident population almost doubling from June through August.

Summertime in Sandpoint centers around Lake Pend Oreille and the Pend Oreille River. The majority of second home buyers here who can afford it, are specifically interested in 'waterfront'. And although we have a huge lake with 111 miles of shoreline, 60% of this is Forest Service Land which may never be developed. As of today there were a total of 147 waterfront homes in the entire MLS and only 87 on Pend Oreille.

The first measurement of the value of waterfront property in this area comes down to 'front footage', meaning how many feet of shoreline the parcel contains. You will often here Realtors talk in terms of $7000 per front foot. Appraisers also use this measurement in valuating land, often adding the value of the improvements (home) on a building cost per square foot basis. Closed sales in the past year have ranged from $2500 to over $10,000 per front foot, with an average for true lake frontage in the range of $6000 to $8000 per foot (including improvements).

Square footage of the lot is generally not a great basis for valuations of comparisons. The total lot size does come into play in terms of adding more privacy and if there is usable space for recreation or additional improvements.

Location and access are huge factors here. Buyers should always consider what their individual use will be and whether that will be primarily summer or if they plan to use it in the winter for a ski home. For example there are some beautiful areas along both Lakeshore, Dufort, and Bottle Bay Roads. But the access in the winter for homes further down these roads can be challenging.

Also how deep is the water? While this does not matter as much in the summer, the level of the Lake drops approximately 12 feet between late Sept and early May. This can turn flatter shorelines into mud flats in the off season. It also means that some of the inlets connected to the larger lake are inaccessible by boat once the water level drops. Most of the shoreline on the south side of the Long Bridge offers fairly deep water access. Places like Sunnyside and Oden Bay often have shallower water which will be muddy in the offseason.

What is the lake or river bottom in the area of interest? Rocky or sandy bottom tends to be the most desirable for swimming. An invasive weed called 'milfoil', which looks alot like kelp in the ocean, has taken over alot of the lake bottom, in particular along the shoreline directly in front of the town of Sandpoint. Milfoil is tough to swim through as it grows all the way to the surface, and it can get tangled in boat engines. This doesn't mean everything on the south side of the bridge has milfoil, but it is definitely something to be aware of.

My recommendation before making any decisions on waterfront property is to first get in a boat to see how the access if from the water. Then drive it by car. There are great deals on waterfront land and homes which can be quite the drive from Sandpoint but are maybe 15 minutes from town by water. For someone looking strictly for a summer home, these options can make alot of sense. Examples include Salishan Point and Willow Bay, both located on a beautiful part of the Pend Oreille River yet a bit far from town to use as a ski home in the winter. Garfield Bay is one of the most beautiful sections of Lake Pend Oreille, yet it can also be quite the drive in winter.

This market offers the best opportunity to buy waterfront property since 2003. Prices have certainly come down. However waterfront property that is priced well has even seen multiple offers exceeding the asking price. Over the past 30 years waterfront property in the Sandpoint area has appreciated on average 12%!

The Parkside Bungalows at Dover Bay Resort are one of the more exciting resort real estate opportunities to be offered in the Sandpoint area in a few years. This is a prime example of a developer who anticipates and responds to the current market and interests of the buying public. The key to these bungalows is the value, efficiency, and location in the heart of all the new amenities at Dover Bay.

Earlier this summer (2008) Dover Bay completed construction of 19 Beach Bungalows, along with a new Fitness Center and Pool, Volleyball court, Cafe and Market. The Beach Bungalows are intended to be a rental product only (not for sale), to be retained by the developer as a means of supporting the amenity structure at Dover as the resort becomes a four season destination. By all accounts these rental units have been a rousing success. Many locals and weekend visitors have discovered that these bungalows are the perfect setting for a vacation for families and friends. Sandpoint has not had many high-end resort hotel options, and this serves the bill nicely. The Bungalows are free standing homes with fireplaces and vaulted ceilings, with the advantage of not having to share walls, take an elevator, or walk a long hallway to your room.

After offering these Beach Bungalows for rent, there had been tons of comments asking if they would be for sale. People love the idea of owning a small 'family lake cabin' where they can stay for weekends, and then perhaps rent out when they aren't around. Dover Bay Development decided to take the land between the Marina Village and Brown's Inlet to build a larger, better version of these that would be for sale. This has led to the Parkside Bungalows, which have been released for reservations as of July 08.

The floor plans for these Parkside Bungalows are just being completed. They will offer 1 and 2 bedroom plans, with 1 to 2 baths., priced from $198,500 to $268,500. Most buyers are electing to add a loft, which really provides a generous amount of extra space for $25,000 or less. This takes the total square footage to up to 1200 square feet. Waterfront plans are available with stunning views overlooking Browns Inlet- these are offered at under $400,000 but there are only two of six remaining.

The developer is bound and determined to exceed expectations and provide added value to the first buyers of Parkside. Granite countertops will be standard for the first buyers. Lofts are being given 'dormers' at no extra charge, which will allow for substantial headroom. All of the Bungalows will come with fireplaces, washer/dryer, dishwasher, and ample storage space. Their is now going to be an option to add a bathroom to the loft, so that one could have a 2 bdr plus loft, with 2 baths for under $300,000!

Another important change to the Bungalow planning was the legal description changing from condo to that of 'single family detached home'. This is an important change as it will make it substantially easier for buyers to secure financing. Dover Bay is also working on a finance package to make it even more attractive.

Dover Bay Development is also working on some exciting additions to its newest neighborhood. Subject to Army Corps approval, there will be a boardalk along the water of Brown's Inlet, a sandy beach with a dock for fishing, canoeing, swimming, in addition to brick barbeque pavilions scattered throughout. This community will be completely maintained with walking paths, beautiful lawns, flower beds, etc. Snow removal to include the driveways, roads, and walking paths all the way to the doors will be provided in the winter. The HOA fee for all of this, including exterior building maintenance, will be just $151 per month.

The site for phase 1 of the Parkside Bungalows has been entirely cleared, retaining as many trees as possible. The first 25 bungalows have been staked out and labeled so that prospective buyers can walk their homesite to see precisely where they are located and what views they may have. Construction is expected to begin any day, as soon as the final permit is received from the Dover Fire Dept. There was some delay in construction, caused by the change from condo to single family home. But in the end this is going to be a huge deal for everyone as they get their financing in order.

Some people are looking at the Parkside Bungalows as a part time retreat and hope to offset their costs by renting their bungalow. Dover Bay Property Management has developed a Rental Management program which owners can elect to use. However in order to be fair and ensure the best deal for owners, Dover is going to get an additional 3 proposals from area property management firms. The first buyers will have the opportunity to select which rental company they want to use. While the Community Charter requires all of Parkside to use one rental management firm, it may or may not be Dover Bay Prop Mgmt that ends up getting the business.

Everyone has certainly seen the troubled headlines in the national media regarding the financial crisis. And this concern has certainly had an impact on our local marketplace in Sandpoint, as some people have been scared away from taking action. However it is important to note that real estate remains in large part a 'local' business. People are buying in Sandpoint because of the 'lifestyle' it affords. The core attractions to Sandpoint remain the same: great skiing, an amazing lake, a cool artistic town with a good music scene, and most importantly some of the best and most genuine people you'll ever meet. Consider also that Sandpoint is still one of the most affordable of all resort communities in the country. There is a limited supply of waterfront property in this area (with 60% of Lake Pend Oreille being forest service land).

The Sept 08 issue of Mountain Living has an article entitled: "What Market Slump: In a rocky real estate market, mountain resorts are avoiding the avalanche of falling prices." The article talks about the fact that values in mountain resorts across the West have held strong in the face of this national bear market. Sandpoint is highlighted as one of "5 Markets to Watch" because of its natural amenities and small town charm. (Visit www.SandpointResortRealty.com for a copy of this and other articles).

While buyers do not currently feel the sense of urgency to buy today, places like Sandpoint are avoiding the downward spiral because the intrinsic demand still exists, and the sellers of high-end resort property typically do not feel the need to 'fire sale' their properties.

In our local market, there has admittedly been some negative press recently, notably the announcement that Sullivan Homes of Idaho is going out of business. Sullivan has been the primary builder for The Idaho Club, a private golf community located near Sandpoint. Their Lodge Home product has struggled to sell in the past 6 months or so. In my opinion this is due to the fact that Sullivan Homes was not able to adjust their pricing to compete with some of the resale inventory that just came back on the market around Idaho Club. This particular resort has sold around 6 homesites this summer, ranging in price from $400k to over $1 million. The Idaho Club has had good original success in securing several reservations on their future lakefront homesites located a couple miles from the gated community. These homes will be priced from $2 to $4 million, each with a private dock and shared clubhouse.

Seasons at Sandpoint is a resort condominium that had a tremendous year in 2007. Their prices shot up tremendously and have not been adjusted to reflect the softer market. Sales this year had been slow, yet our office just closed on two units priced at $1.2 million and $2.4 million.

Schweitzer Ski Resort is in a phenomenal position financially, unlike most ski resorts in the country. They own 7000 acres of fee simple terrain, debt free! Because of their unique position, Schweitzer has held off on marketing of their ski-in ski-out homesites at Trappers Creek. As Listing Agent for this development, I would be happy to provide further information on the future plans (which will be very exciting and a boon to Schweitzer real estate sales). The owners of the mountain have continued to invest tremendously in ski operation improvement, such as new ski lifts and snowmaking. This will position the mountain for success as the market improves.

Dover Bay continues to have a steady pace of sales, both in its secondary and primary waterfront property. The waterfront Marina Town condominiums have had two closed sales in the $900 and $1.1 million range in the past month. There are also two reservations on the newly released Building 3. The waterfront Parkside Bungalows recently released now have 50% reserved. I personally have two waterfront homesites at Dover Point pending. These are two of the most magnificent lots available in the area, with listing prices around $1 million each.

There have been 13 closed sales of waterfront property on Lake Pend Oreille and Pend Oreille River, between June and August 2008. If you remove the sales last summer at Seasons Resort, there were only 9 closed sales of this property last summer. The entire Lake and River only has 149 current listings. On an annual basis this equates to 4.3 months of inventory.

The important concept to note is that desirable resort and waterfront property in the Sandpoint area, which is priced well, continues to sell! Great values are available and smart buyers are out looking right now and making offers. The key is to work with someone that understands the relative values and the intricacies of waterfront and resort properties.