One of the reasons I decided to align myself with the Sothebys Intl Realty brand here in Sandpoint is because they have a tradition in most locations of serving the affluent buyer and seller of real estate. This approach fits my experience and my business focus...in my hotel industry days I was a Sales Director for Four Seasons Hotels, the premier five star hotel brand. Throughout my real estate career, I have represented luxury resort developments that have attracted affluent second home buyers. Frankly I've always enjoyed working with the sophisticated buyer who has some level of experience in the real estate game.
I was looking at the current listings in the MLS at different price points. There are a total of 104 active residential listings above 1 million. Our Sothebys office has 61 of these listings, representing over 50% of the market share. The next in line is Century 21 with 15 million dollar listings representing just 14%. In comparison our Sothebys office has 26% of the total listings in the market (all price ranges), while C21 has 17%. Simlilar numbers show up when looking at the actual sold listings relative to each office.
The Sothebys brand has an international reach that attracts affluent buyers more than perhaps any real estate brand. In many markets the name Sothebys is synonymous with luxury and a high level of service. We have some unique tools that provide incredible exposure for our listings, particularly those priced above $750,000. Through these resources, a number of buyers have discovered the Sandpoint area who may not have ever considered it. Our waterfront and ski property listings often show up alongside Lake Tahoe, the coasts of California or Florida, and prospective buyers are shocked at the values they can find here on the water or the ski hill.
Anyone considering a listing of their higher end property, or their resort second home, should consider who is really doing business in this regard. Not only do we have the national and international outreach, but our office is a tremendous network in and of itself. The Tomlinson affiliation also connects us with many of the top agents from throughout the Inland Northwest.
For anyone considering listing their resort, waterfront, or ski property, I would appreciate the chance to show you the advantages of working with myself and my team.
There are some interesting real estate statistics over the first few months of 2009 in the Selkirk MLS, which includes Sandpoint and all Bonner County.
Year to date through April 20, 2009 there have been a total of 157 closed real estate transactions for a total volume of $41.5 million (includes selling and listing side). This gives an average closing price of just $132,000. Of the 130 residential (non-land) sales during this time, 120 of these were less than $350,000. Only 10 sales in just under four months that were above $350k! That makes me feel pretty good considering I've had closings at $675k, with a pending at $850k and another at $450k.
For the month of March there were 29 residential closings, 10 land, and 1 multi-family. Only one of these 29 residential listings closed above $300,000! The numbers definitely indicate that the first time home buyer and entry level buyers are the ones actually buying homes right now. These numbers really start to show why the few buyers at the mid to higher price points are truly in the drivers seat. I think the real sweet spot in the market (from a standpoint of value for buyers) is in the $400 to $900 price range, where many sellers are extremely motivated. The lower price point has enough demand that prices have not had to adjust as significantly. The million and up properties also have not had to adjust as much, simply because many of these property owners own their homes outright and are in a different economic bracket altogether. They simply do not have the same pressures to sell quickly.
Another interesting statistic is that the average sale price as a percentage of FINAL list price is 94%. Average price per ORIGINAL list price is 87%. This should indicate that once a Seller gets real on listing price, Buyers are not getting a significant price reduction beyond this point. A perfect example is a listing at Schweitzer that started at $1 million a year ago (certainly an aggressive price point), then reduced to $899k, then $799k, and finally to $699k. I learned of this final price drop the day before it hit the MLS, and my Buyer jumped on it and closed at $675k. There were suddenly multiple showings over a few days, and the Seller did not have to reduce significantly beyond the final list price. The message here for Buyers is to work with a good Agent to identify the true values in this market, and when the value is found for a place that fits your needs, be ready to move forward. Don't expect to necessarily negotiate yet another steep discount if the home is already priced below the market (although it doesn't hurt to try if you aren't set on buying that property).
If you find these stats interesting, please let me know. I'd be interested in any insight that others might garner from these figures.
If you are a Seller looking for a real market analysis, I'm happy to provide the figures for you to make an informed decision. If you are a Buyer looking for a 'deal', I'm happy to help you locate it.
Sandpoint Idaho was featured again last week in the New York Times magazine. This is the third or fourth article on Sandpoint that has been in the NY Times in the past few years.
The article profiles the new Sandpoint Transition Initiative that was recently launched with an opening event at the Panida which was sold out and overflowing. Sandpoint is now the second American town after Boulder, CO to become a 'Transition Community'.
The gist of this movement is to go beyond the idea of 'sustainability' and to bring each part of the community together towards the common goal of a thriving community that is independent of many of the world's growing energy, food, health, and environmental challenges. Unlike many movements, the Initiative seeks to create positive energy around some of the world's toughest challenges.
The Buy Local movement is one outgrowth of this that I have seen more and more recently. There is a true feeling of community here in Sandpoint, where neighbors help each other and local small businesses are supported.
The Six Rivers Marketplace is an example of where this is going as well. This is a members only marketplace, where local farmers, food providers, and anyone that wants to try their hand at selling their favorite recipe, can be a vendor at the market. Consumers place their order online and can pick up all their groceries at the weekly marketplace, packaged and ready to go.
Click on the following link to see the entire article:
http://www.nytimes.com/2009/04/19/magazine/19town-t.html?_r=1&emc=eta1
Here is yet another example of why Sandpoint is such a special place to call home!
What a great final weekend at Schweitzer Mountain Resort! This was what spring skiing is all about... soft snow, sunshine, music and apres ski, seeing all your friends. All the locals were up at the mountain to take advantage of the great weather and the final opportunity to ride the lifts for the year.
The final weekend coincided with the annual Tropical Daze festival. There was a downhill dummy derby, pond skimming, music in the village, and fun parties at night including the Hot Dog the Movie party at St Bernard.
And for the second year in a row, we had powder skiing up until the final day. March was a phenomenal month with over 100 inches of snow.
It was a bittersweet couple of days, knowing that the resort would once again shut down its lifts with so much snow still on the mountain. In fact the base was increasing up until the last weekend. I really believe that Schweitzer can meet their profitability objective and still remain open until at least the first of May. They have spent a ton of money to add snow making equipment that will allow them to open the season early, with a goal of THanksgiving. And I understand that it is difficult to make a last minute decision to stay open, with the insurance and employment contracts.
My humble opinion is that they should stop trying to open so early and simply listen to mother nature, which clearly has been telling us that Winter at Schweitzer lasts until May. Those of us who are willing to hike for our turns will still be enjoying skiing for another couple months, but its a shame that we can't experience another month of spring skiing, with sunny days and corn snow. Silver Mountain had a good solution to extend their season.. they opened on weekends last year all the way through Memorial Day, but only if they could sell a predetermined break-even number of lift tickets. The final weekend at Schweitzer was absolutely packed and certainly profitable. With more events like this, Schweitzer has an opportunity to extend the season in a profitable way. What's more, this could be a tremendous marketing opportunity by creating a true Spring skiing experience in the Northwest.
When will Real Estate hit bottom? This is the million dollar question today, and everyone has their own opinion. The irony is that noone will really be able to identify the precise time that the real estate market bottomed out until several months or even a year later when we can look back and analyze the data.
From my personal experience here in Sandpoint, Idaho, it is both refreshing and frustrating that there are so many people right now that are very interested in buying yet are still taking a 'wait and see' approach. The common fear is that they will pay too much for property today, only to have the market continue to drop, thereby leaving 'money on the table'. What I do know from my Business school days is that the economy ALWAYS moves in cycles. I like to say 'the only constant in life is change'. When in the midst of a downturn everyone starts thinking we will stay here forever. I can remember a few years ago in the euphoria of the hot market hearing people talk about how it was a new era and real estate would continue to appreciate at drastic rates, with the baby boomers, etc.
The market will recover when consumer sentiment becomes more positive and the 'fence sitters' are willing to stick their necks out. Nationally we have already seen signs that this is occurring, with condo sales improving in February and March and inventories starting to decline for new homes. In the North Idaho market, particularly Sandpoint, I am seeing an influx of new prospects that are in good financial shape and ready to take advantage of this buying opportunity.
The market will recover when employment turns around. This is the tough one right now, as it looks like their will be continued layoffs in the auto industry, etc. However the pace has slowed, and the government is stepping in to alleviate these issues. Also real estate does tend to lead the recovery by at least a few months ahead of employment numbers.
The market will recover when credit loosens and businesses can borrow for working capital and expansion. The Federal stimulus efforts are certainly showing signs of working their way into our local economy. Banks like Panhandle Bank and Mountain West Bank here in North Idaho are aggressively promoting their loan products to credit worthy borrowers. The government guarantee on SBA loans is having a big impact locally on new loan applications for startup and expansion business. I know firsthand as I am assisting my brother in a startup coffee roasting business. This is the best time in memory to get a small business loan, with most of the upfront fees waived and the government guaranteeing 90%, relieving almost all risk to the banks.
The market will recover when the stock market recovers and consumers see a positive trend. While many believe the recent rally may not last, most analysts are saying that we are in the midst of a bottoming process in the stock market and expectations are for growth in 2009.
From my perspective, we are poised to have a flurry of activity in the Sandpoint market as we enter the busier summer season. I have had more inquiries in the past 2 months, with an increase in people from out of the area wanting to come out and tour property. People are not in a big hurry to buy, however they are starting the process of getting off the fence. While I don't see prices appreciating rapidly in the near term, I do think that the buyers who can get in front of this buying activity will benefit with the best prices. Now more than ever, its important to have good Agency representation to uncover the best values in today's market.
Contact me if you would like my opinion on the best values in any particular area of the market, whether it be a ski home at Schweitzer, vacation property at Dover Bay, Seasons, Westwood, or Condo Del Sol, or perhaps a great piece of waterfront real estate on Lake Pend Oreille.
http://www.SandpointResortRealty.com
http://www.SchweitzerLuxuryRealEstate.com
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Broker specializing in waterfront, ski, and resort real estate, including new construction and land. 15 years experience in the resort business. Manage Schweitzer Ski Resort Discovery Center.
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