Gary Lirette

As we move into Winter, we are all expecting to see another 6 months of stimulus with the extension and expansion of the Home Buyer Tax Credit. The current proposal being worked through the Senate keeps the First Time Home Buyer with an $8,000 credit and for people with ownership for 5 years or more a credit of $6,500. We will keep our eyes and ears open as they iron out the unemployment bill that this extension and expansion is attached to.


Here is a solid commentary on the market from Mortgage News Daily, written by Victor Burek.

Mortgage rates ticked higher yesterday as prices of mortgage backed securities were pressured lower by a selloff in the long end of the Treasury yield curve. To remind readers, as prices of MBS and Treasuries fall, their yields or rate increase...price and yield have an inverse relationship. No major report or headline caused the moved lower, AQ and MG point out that it was a function of Friday's bond market rally being unwound before today's Treasury auction announcement and the FOMC meeting which was ignited by a "Build America Bond" issuance pricing in California. Their brains are complicated but we make a good team! Whatever the reason was, price losses held into the close and the majority of lenders repriced for the worse.

This morning the Mortgage Bankers' Association released the Weekly Mortgage Applications index. This data which tracks the weekly change in the amount of mortgage applications for refinance and purchase loans. An increasing trend in applications is a positive economic indicator. First, the purchase of a new home shows that the consumer feels comfortable enough with their own job security and finances to make a major purchase. Additionally, it will lead to many other purchases such as flooring, furniture, appliances, etc... to fill the home. Next, an increase in refinance activity should give consumers additional cash each month as they refinance to a lower interest rate and payment. With this increased cash flow, the consumer will have more funds to buy items which should increase future consumer spending and corporate profits. For these reasons, market participants track the applications index for signs of future economic momentum.

The report shows that the refinance activity moved higher by 14.5% last week as mortgage rates fell; however, the purchase activity posted a 1.8% decline. The decline in purchase activity is an indication of weaker home sales in the future.

Next we got a peek into the employment situation with the release of the ADP Employment report. This data is similar to the official government report we get on Friday with a couple key differences. First, the ADP report is compiled by a private company, Automatic Data Processing, not the government. Next, it only counts private payrolls and does not take into account government jobs. Historically, this report has varied greatly from the official report but it's accuracy has been improving. Since jobs are so crucial to any economy, market participants track this report to get a gauge on economic momentum but it continues to be of much less significance than Friday's official Employment Situation report.

Expectations called for a loss of 195,000 jobs, but the ADP reports that our economy lost only 203,000 jobs last month (ONLY HAHA). The prior months figures were revised from an initially reported loss of 254,000 to -227,000.

The final data release today was the ISM Non-Manufacturing Index. This data is a survey of 400 non manufacturing firms across the country regarding the strength of their business conditions. Readings above 50 indicate expansion while reading below 50 indicate contraction. Recent reports have shown that non-manufacturing business conditions have been improving with last month's report moving above 50 for the first time since the summer of 2008. Economists surveyed had expected to see continued improvement with a 51.6 reading but the actual reading came in lower at 50.6. With the Fed statement in a few hours, there was no reaction to this report.

Helping to keep the pressure on the fixed income sector to move lower is the announcement from the U.S. Department of Treasury regarding the size of the upcoming auctions next week. The announcement shows that they will offer $40billion of 3 year notes, $25billion of 10 year notes and $16billion of 30 year bonds which is basically in line with expectations.

The big news of the day will be the Fed statement at 2:15est. Today is the conclusion of the Federal Open Market Committee's 2 day meeting which occurs 8 times a year. At these meetings, our nation's monetary policy is set. It is widely expected that they will maintain the current Fed fund rate of 0 to .25%. As always with these meetings, the statement that is released is scoured by market participants for any hint at future monetary policy and their outlook on the economy. I suspect today's statement will be very similar to the last one. They will maintain the current rate "for an extended period" and caution about a slow and but steady economic improvement.

Lakedance Film Festival has gone through some changes since its beginnings four years ago. Its founder, Trevor Greenfield, wanted to bring a world-class event to small-town Sandpoint, Idaho. In the first year, there was no major sponsor, and the event was in the red. For the previous two years, Schweitzer Mountain Ski Resort sponsored the film fest, and last year they went into the black, making a small profit for the first time.

Schweitzer declined to be the backer this year, and Laser Image stepped in. Good timing too, because Lakedance was named to the Top 100 Film Festivals this year.

Three years ago I started the Cedar Street Bridge art show called the Sandpoint Art Break as a two-day event that was put on in support of Lakedance. I have also catered the special events during the fest since its inception, continuing this year through my affiliation with Dish Home Cooking.

The first night, last Saturday on Halloween night, the turnout was so-so, but the following Tuesday the crowd was among the largest ever for the Panida Theater.

I ran the concession stand, Evan's Brothers Coffee Roasters served awesome espressos, and a great time was had by all.

I will blog again later in the week to give you an update, but so far, a nice beginning to our very own Lakedance Film Festival.

When Where to Retire magazine approached me about being interviewed for a feature article, I wondered why they would choose me of all people. Still, the reasons they gave were compelling. With so many REALTORS® dropping out of the business, I have had several closings this year. As the radio host of two successful shows on North Idaho, there are few people that know the region better. As an avid community supporter, sponsoring and volunteering for dozens of charities and events, there are few people that are bigger cheerleaders. Finally, they learned from several sources that I was the guy to talk to.

The article is very accurate about Sandpoint, and there were no misquotes.

If you would like to read it, follow this link to Undiscovered Haven: Scenic Sandpoint, Idaho

This website sponsored by Gary Lirette &
Tomlinson Sandpoint Sotheby's International Realty
200 Main Street
Sandpoint, Idaho
208-255-3474

With over 100 websites, there are few private individuals that can compare with my web presence. While in a company meeting, our broker, Jeff Bond, suggested that having YouTube videos would help a website's position in Google. So, using my tiny netbook, I put two videos on one of my sites right then and there.

This year those websites are on target to get over 450,000 hits. The websites range from pure real estate business, to art, community support, and a variety of other fields and interests, all about Sandpoint, North Idaho, and Schweitzer Mountain Ski Resort.

Other REALTORS® have to pay web pros to do their sites. They have to hire people to create content and write material. I am a Flash animator, with several published books and works, and have created all content, designed the sites, taken the photographs, and even shot the videos.

One of my sites has been judged one of the four top community websites in North Idaho.

You decide for yourself. Here are some of the dozens and dozens of websites I have created for myself, as well as a couple of others:

www.SandpointID.net
www.SandpointCentral.com
www.SkiSchweitzer.net
www.Sandpoint-Idaho.org
www.HopeIdaho.net
www.WaterfrontHomesSandpoint.com
www.RealtySandpoint.com
www.SandpointRealtor.net
www.Sandpoint.cc

Every one of my listings gets special web presence, from enhanced listings on sites like Realtor.com or Trulia, to Craigslist, to even videos on YouTube.

Special listings get their own exciting websites, and some areas get special attention, like the site we prepared for Comeback Bay.

It isn't enough that websites get the message out. We add high-quality print materials on glossy media, way better than plain paper printing.

Is it enough to be providing a strong web presence and good print media? My team continues to do print advertising. Most REALTORS® can't afford to advertise in the rags and magazines that we continue to provide. I was the only REALTOR® to advertise on radio this year. This fits my profile since I am going into my seventh year as the host of two radio shows: North Idaho Business as well as North Idaho Arts & Adventure. This year I have done less than any of the previous five in terms of supporting and providing time and funds to local charities and events. Even so, nine charities and events have gotten over 120 hours of commitment from me, as well as over $12,000 in direct contributions.

This kind of community support and commitment creates a warm and fuzzy feeling from the community. This kind of commitment creates trust. I often hear from various visitors and townsfolk, "You should run for mayor!"

When a writer for Where to Retire magazine was looking for someone to interview that represents what Sandpoint is all about, my name came up over and over. The December issue of the magazine produced a showcase article titled Undiscovered Haven: Scenic Sandpoint, ID. The six page piece covered much about what makes Sandpoint special, and a large part of that article was about our experience here.

We also back all this up by being part of Sotheby's family of companies. Sotheby's has been one of the few brokerages that still attract viable buyers. We have the tools, experience, and savvy that produces sales that are the envy of our industry.

There are a lot of reasons my team and I should help you with your real estate experience in North Idaho, and it starts with cutting-edge technology and a strong web presence. That experience has been years in the making, and the know-how of internet technology can't be replaced with the best of the old-school ways of doing things: footwork, doing our homework, people skills, and just showing up every day with a good attitude to get the job done.

Tomlinson Sandpoint Sotheby's International Realty

200 Main Street
Sandpoint, Idaho

208-255-3474

Having just closed on 333 Derr Island - a beautiful waterfront home on Derr Island at the mouth of the Clark Fork River and Lake Pend Oreille - I can truthfully say that there are hardly any other agents in North Idaho that have had more success in 2009 selling waterfront than I have had. My waterfront sales have included Bryce closed at $749,000, which had an asking price of $719,000. I also have sold Raptorview for $50,000 over asking price, and got a fantastic water view parcel for another young couple just a month ago for over $200,000 less than just two years ago, and for half of what is being asked for a similar lot in the same development.

Another area that I have excelled in is in finding waterfront listings priced well below the rest of the market. For instance, Derr Island was the best priced actual boatable waterfront in Bonner County. Priced at $499,900, it sold for full price, and had a private airfield as part of the deal. Just yesterday I listed 200' of waterfront on the Pend Oreille River for lower than any other lot: $175,000. This 2.5 acres has an old manufactured on it, but the mobile is given no value. This lot is $75,000+ lower than the competition. Why priced so low. The competition isn't selling at their higher prices. I will also be listing another secondary waterfront home on Comeback Bay for under $300,000. My own vacation home on the Hope Peninsula, with its own dock and secondary waterfront, is also priced below $300,000. This means I have easily cornered the best priced waterfront properties in the county.

Is waterfront selling? Not as well as in recent years. But I am selling waterfront. What is my secret? I show up for work every day, and am the king of websites in North Idaho. Want to know more about my web presence? Read the next blog article.

Gary Lirette, REALTOR® & host of the Tuesday noon local radio shows North Idaho Business as well as North Idaho Arts.

E-mail Gary or call 208-610-1384
Read Gary's Blog
For more detailed local info & real estate

Tomlinson Sandpoint Sotheby's International Realty

200 Main Street
Sandpoint, Idaho

208-255-3474