I’ve gone and done it.  For most of you, this won’t make a difference whatsoever.  For me, it’s wonderful.  I’ve transitioned this blog from being on the free version of WordPress (a blog hosting platform) to my own hosting account.  This allows more freedom in what I can do with the blogsite, which is a great benefit for you, the reader.

So, please head on over to The North Idaho Real Estate Blog – it’s this blog and then some.  Essentially this blog has officially “ended” although I will keep it updated with cross-referenced posts now and then to remind everyone to change their bookmarks.  I will also be updating the weekly email that goes out to all of you so that you get the updates from the new blog.

Here is a link to our “September Real Estate Update“

This Newsletter is full of interesting and useful information perfect for buyers, sellers, homeowners, or renters.

This month’s issue includes topics such as:

“What the Housing and Economic Recovery Act of 2008 Means for You”;
“Moving Away From Heavy Gasoline Use”;
“New Fed Rules To Prevent Future Runs on Bad Loans”;
“Open The Doors And Buyers Shall Come — But Prepare First!”;
“Investor Report: Hidden Tax Pitfall”;
“Don’t Overlook The Garage When Getting Your Home Ready To Sell”;

Plus a roundup of August real estate activity as well as much more advice and information.

Enjoy. If you have any comments, let us know. Or, if you would like to see a certain topic covered in future months, let us know that too!

North Idaho housing starts follow national trend

Lower numbers mean fewer jobs in construction

COEUR d’ALENE — Construction in Kootenai County, as it is across the country, is slowing down.

“(Construction activity is) running about 10 percent below what it was last year,” Kathryn Tacke, Idaho Department of Labor, said of the Panhandle region. “That’s about 730 fewer jobs than we had last year in construction.”

Press article here.

This is absolutely the best news we’ve had in a while.

Why is it good news?  Because Kootenai County is just WEIRD.  Nationwide, approximately 10-12% of all homes sold are new construction.  That’s a national statistic that holds true in most areas.  Not in Kootenai County.  Here, roughly 26-29% of all homes sold are new construction.

Lower housing starts is excellent news for home owners.

Currently, the fact that almost 1 out of 3 homes sold is new construction is seriously hindering the ability of home owners to sell their homes.  When buyers can continue to get a brand new home, with more square footage than a resale offers, they’ll continue buying new construction.

With the slow down of new construction coming, it shows that there will be an upswing in resales. When?  I’m not omnicient so I can’t tell you that but, historically and cyclically it’s about 8-12 months after the housing start slow down.

2008 Residential Real Estate Stats for Kootenai County – North Idaho Real Estate

A quick look at the residential real estate market in Kootenai County for the past 12 months.

Even with this crazy market, there are still some subsets that are doing very well.  For example, Coeur d’Alene residential homes are showing no drop in average or median sales price.  Homes in Rathdrum and Hauser have shown an 8% (average) & 9% (median) increase in sales price.  We are seeing a higher list price now than the average over the past 12 months and days on market are still very good for our area.

2,943 Active listings
$475, 242 Average list price (today)
$412,577 Average list price over past 12 months
2,198 Sold homes
$270,005 Average sold price
123 Average days on market
2,597 Expired homes (homes that failed to sell)

What’s it look like?  Like this:

10 Year Comparison Feb thru July

This is a comparison chart, provided by the Coeur d’Alene Multiple Listing Service of the past 10 years – February through July only – total number of sales.  Currently, we are sitting somewhere between 2001 and 2002 (although this isn’t totally accurate as it only shows and compares the past 6 months).  This is not a year-over-year comparison.

All information is taken from the Coeur d’Alene Multiple Listing Service.  Information deemed reliable but is not guaranteed.  Information provided is for Kootenai County only and does not encompass all areas that the Coeur d’Alene Multiple Listing Service includes.

Inc Magazine:
Where Are the Best Cities to Do Business?

Our comprehensive annual guide to which places are thriving — even in an economy many consider in recession.

What a difference a year and a deflated housing bubble makes. Inc.com’s 2008 list of the Best Cities for Doing Business, created in conjunction with Newgeography.com, uncovered some of the most dramatic changes since we started this ranking back in 2004. Five major trends were immediately revealed; trends that are shaping the business environment right now across the country and will continue to over the next several years.

The list focuses on short- and long-term job growth. It tells us precisely not just where jobs are being created — a sure sign of economic vitality — but where the momentum is shifting. For entrepreneurs, this suggests what may be the best places to locate or expand your business.

Some of the other areas in this vast region (Pacific Northwest) benefit from what might be called “grey power.” Older, often more educated and affluent, baby boomers are flocking to the smaller towns and cities in this region, bringing capital and, in some cases, entrepreneurial know-how.

1. Midland, TX
2. St. George, UT
3. Coeur d’Alene, ID
4. Odessa, TX
5. Auburn-Opelika, AL
6. Wilmington, NC
7. Bend, OR
8. Myrtle Beach-North Myrtle Beach-Conway, SC
9. Grand Junction, CO
10. Greenville, NC

Reminder of list here.

The Washington Post reports that a team of housing economists believe “predictions of further large housing price declines are greatly overblown.”

The Post gathered some of the nation’s top economists to study the housing crisis. They concluded that in reality only four states – Arizona, California, Florida and Nevada – have had home price declines of more than 4 percent in the past year.

The economists said the home price index compiled by the Office of Federal Housing Enterprise Oversight was the most comprehensive of the various indexes.

The Post said, “Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states — but will not collapse.”

More info here.

©Realtrends.com

Chamber Weekly Update

“…I am really curious what you and your colleagues are saying about the current market conditions.  Are you still saying that things are stable?  Are things down?  Looking at the first ½ of 07 vs. 08, one might say things are down, however it is in my opinion a little too early to say.  Just curious what your take might be.  I have read a number of articles from your website/newsletter and so forth.  It is great information.  I am just fishing for some educated opinion…”

Definitely sales are down first 1/2 08 (by 25%) or so – and listing inventory is up by 7% or so.  With that said, that’s all encompassing – in other words, it’s everything in the MLS, not just Kootenai County.

What we are seeing is more instability (prices are all over the place) than ever before and this is usually indicative of a bottoming out – how long this instability lasts is the unknown.  It’s pretty much all dependent upon the credit markets and what that is going to settle down into being in the future.

The other factor we had this year was our incredible winter – this definitely affected sales significantly in fact – but knowing just how much that alone affected sales is impossible to determine.

We are seeing several things -

1. If sellers want to sell, they absolutely must price their home at the bottom rung of the price point with little to no competition.  If they don’t, they simply get lost in the sea of homes available and won’t get their home sold this season.

2. Buyers seem to think that they can make offers 10-20% below listing price on ‘best priced’ homes.  By this I mean that if a home is at the best price for it’s competition, buyers think that the seller is desperate or needs to sell (or whatever they are thinking) and they offer ridiculously low offers.  With sellers that are priced well, I can confidently advise how to counter back and whether to hold out or not.

3. Buyers are not separating our market from the markets that are seriously hit such as California, Phoenix, Las Vegas and Florida.  Buyers seem to think that since people are making offers at up to 40-60% off listing price and getting great deals, that must be the case everywhere.  Even REO’s aren’t going for more than 10% below market value in our area.

4. On the flip side, because so many of my sellers are from other parts of the country – I’m seeing more realistic expectations from sellers I work with that live out of state than I do from sellers that live locally.  The sellers from out of state are innundated with their local markets downward spiral and actually listen when I explain our market here.

5. On the other side of the above, I have a couple of sellers that are unrealistically freaked out – one seller brought over $30,000 to the table to close his property only because he was nervous about the market (out of state seller).  That $30,000 would have sustained him with a tenant for 4-6 years (it is a very strong rental market in our area) – well beyond our current market conditions.  My honest opinion, if you have to bring money to the table – sit down and figure out how long that money would last should you rent it out – even at a negative cash flow.  Then determine if that is long enough to get you into a better time of year to sell or even a better year to sell.

I found three articles in the Calgary Herald recently (I know there are more articles, I only read these 3).  It seems that Calgarians are loving the Coeur d’Alene Idaho area.  There are plenty of reasons why, that is for sure!

Calgarians flock to little slice of heaven

Calgarians have known what Coeur d’Alene, Idaho, has to offer for years.  Located just 661 kilometres (411 miles) from Calgary, the beautiful lakeside city has long been a destination of choice for Alberta vacationers and outdoor enthusiasts — and with good reason.  It’s an idyllic way of life, and one that is attracting Calgarians in growing numbers.

Buyers discovering hidden treasures

In Alberta, the name Mike Meldman probably means very little to most people — but in the U.S. resort development world, he’s right up there.  Meldman, president and CEO of Discovery Land Co., is in the business of creating resort properties out of nothing.  The newest development for Meldman is on the far shore of Lake Coeur d’Alene in Idaho, a 280-hectare golf resort on a bluff of basalt — rock that is formed during volcanic eruptions — that goes by the unromantic, but nonetheless intriguing, name of Gozzer Ranch.

Developer puts together pieces of land ‘puzzle’

Marshall Chesrown is the guiding hand behind Black Rock Developments — which, with at least seven projects, is one of the largest residential land developers in the Coeur d’Alene/Sandpoint area.  “I could never figure out why this area had not grown like Sun Valley or Lake Tahoe,” says Chesrown.

North Idaho is simply gorgeous and has become a wealthy “second-home” retreat. With over 200 homes currently available with sales prices over $1,000,000 – there is plenty to choose from.

Currently, the highest priced home available for sale is on Coeur d’Alene Lake and offers over 9,500 square feet of living space and over 900′ feet of waterfront. Priced at $10,500,000 it is definitely not for the faint of heart.

My concern is that with the photos currently promoting the property, the beauty of the property is lost. The photos are clearly not professionally taken, they are not promoting the best aspects of the property and, there are too few of them (with the vastness of this property/estate, more photos are needed) – the agent offers up 29 amateur photos on this property.

The very next priced home (at $6,200,000 and on Lake Coeur d’Alene) shows beautifully – with over 100 photos available for the voyeur to enjoy – a mix of professional photos and amateur photos (or, if not professional, at least taken with wide-angle lenses and the photographer has some idea of what they are doing). This home offers 7,200 square feet of living space and stunning views of Coeur d’Alene from the decks of the home.

Another one, clearly a stunner, offers up 11 pictures at a price of $4,495,000 and yet another one, at $4,1995,000 offers 2 pictures. Yes, that’s right – a $4.2 million dollar home offers up 2 pictures for all the world to see.

What I simply do not understand is why owners of luxury property are choosing agents who so clearly have no clue what it takes to market a luxury property? I’m addressing the very basic marketing element of photographs. Excellent photographs of a home are the starting point for marketing that home. How else does one expect to get a luxury property sold?

Luxury home buyers do not typically want to spend their time personally looking at every single potential property. All too often they research areas via the internet, utilizing extensive photographs to get a feel for the area and the homes they are interested in. In some cases, when the buyer is a high-profile buyer, they send an ‘advance’ team (either via phone or in person) to preview the property for them. Why not help these buyers? Help them do their research in privacy and confidentiality? Give them what they are looking for – extensive photographs and information.

If you are a luxury home seller – don’t put up with shoddy marketing of your beautiful property. Give me a call today and we’ll get your home exposed to buyers thoroughly and competently.