Residential  Report

Well, the real estate year ended with a bang here in McCall, but the numbers ( % percentages ) must be tempered as we are comparing to the 2008 meltdown !  For the 4th quarter in a row we saw significant increases in sold properties.   In the McCall real estate market, the months of October, November and December resulted in 59 sold properties compared to 26 sold properties for the same period in 2008, for a 128% increase .

 A total of 192 properties sold in 2009 compared to 114 sold in 2008, for a 68% increase.  Of the 192 properties sold in 2009 in the McCall real estate market , 60% ( 115 ) were priced under $300,000.    23% ( 43 ) of solds closed between $300,000 and $500,000.    6 % ( 11 ) properties sold between $500,000 and $900,000.  Ten properties sold between  $1 million  and $2 million ( 5 % ) .   The median price for all solds for 2009 was $250,000, with an average of 138 days on the market .    At the end of the fourth quarter ending December 31, 2009  there are 14 pending properties (sold but not closed.  Of these,  9 were listed  under $300,000.

Current active inventory of the McCall real estate market  (not including New Meadows and Donnelly) stands at  253 single family and condominium listings.   This represents  a 28% decrease in inventory from the previous quarter ending September 30, 2009, indicating that absorption levels are increasing and sellers have some optimism for the winter.

The prices in the  distressed property market has been the dominate driving psychology for buyers in 2009.    Most of the more appealing distressed properties, in terms of condition and location, were sold in the first half of the year at significant discounts.   The  remaining  short sale/ REO properties remaining on the market appear to be in poor condition or are in inferior locations .   Out of the 253 current active listings in McCall only 36 or  14%  of the total are short sale opportunities ( market value is less than the mortgage owed ” Short ” ) .

Sellers of non distressed properties who have the ability to weather the storm are holding off placing their properties on the market until prices stablize.  This is typical for the McCall real estate market where properties are not listed for sale during the winter months until  the summer selling season.   As a result, buyers looking at non-distressed properties at this time are not finding the options and if their finances allow, they are turning toward building lots as there are some great locations to choose from and building costs are very attractive .

Here’s a link to the detailed McCall Real Estate fourth quarter Residential market report.

McCall Residential 4thQuarter2009 Report

Lots and Land  Report

For the year 2009 lots and land sales in the McCall real estate market showed a modest 22% increase with 43 closings vs 35 for 2008.  The low overall  numbers reflect the buyers comparing the discounted pricing of ” existing distressed built product ‘  against buying a lot and developing .

 This was especially true more in the first half of the year as there was “ better conditioned/located “ distressed inventory to choose from . In the 2nd half of 2009 as the inventorydwindled for better distressed property , we have seen buyers turn toward the plentiful lot inventory , and opt to create value from lower land/building cost.     

Here is a link to detailed  McCall Real Estate 4th Qtr. Land/Lot Market Report

LandandLots4thQtr2009

For the 3rd Quarter in a row the McCall real estate market showed a substantial increase over the same period the previous year. There were 58 solds in the 3rd qtr. ( June , July , August ) for 2009 compared to 42 in 2008 for a 38% increase. Of the 58 solds , 45 were under $400,000.

There has been increased  buyer interest for higher priced distressed properties as opposed to recent quarters where the buyer pool was strictly focused on distressed properties in the 200-300 thousand price range.   Some of these buyers are willing to sacrifice location for discounted improvements  as some of  these properties are in average locations that have not sold well as building lots.

At the end of the 3rd Quarter current pendings ( sold but not closed ) properties total 24 . Of the 24 pendings , 16 are under $300,000.

Active listings total 349 compared to 429 at the end of the previous (2nd) Quarter for a 23% decrease. This is a positive absorbtion trend for sellers with non-distressed properties . Of the 349 listings currently on the market for sale , 217 ( 62% ) are under $ 400,000. There is still a oversupply of  luxury homes . 47 homes are priced between $ 500,00 and $800,000 . 41 homes are priced over $800,000.

The following is a link to a detailed 3rd Quarter report .

McCall Residential 3rdQuarter2009 Report

For the second quarter in a row in 2009 the McCall real estate market showed significant increases over second quarter of 2008 with 38 sold single family and condominium properties compared to 22 in the second quarter of 2008, a 72% increase.  Of the 38 sold homes and condominiums in McCall, 35 were priced under $349,000.

As was the case in the first quarter of 2009,  we continue to see intense buyer interest in short sale, foreclosed and discounted properties under $400,000.  The inventory of single family and condominium homes in the McCall real estate market in this price range is plentiful -  310 of the 429 active listings or 72% are priced under $400,000.

There is increasing interest in homes and condominiums in the $400,000 to $700,000  range as prices continue to soften,  but buyers are still hesitant to submit offers until they see evidence of price stabilization through the summer selling season.

Deeded lakefront properties on Payette Lake under $2 million are showing strong buyer interest which is typical as the summer season brings out lakefront buyers.   Payette Lake homes and lots which are on leased land are not moving due to the uncertainty surrounding the State lease terms.   On June 16th the Idaho State Land Board held its  monthly meeting in McCall due to obvious interest by leaseholders on Payette Lake properties.   The Land Board has committed to a final proposal July 9th at its regular monthly meeting.

The Idaho legislature has approved the Land Board recommendation to change the lease term on Payette Lake leased properties from the current 10 year lease to 35 years.   The current thinking and proposal for determining assessed lakefront land value is to establish lease rates based on a 10 year average in an attempt to avoid the peaks and valleys, boom bust environment we have seen in recent years in the value of McCall real estate and Payette Lakefront.   The current lease rate related to the land only of Payette Lake properties is 2.5% of the Valley County tax assessment for the land.

The State Land Board has stated they will raise the rent or lease rate between 3-5% per year – most likely 3% for a 1/2% increase.   The final part of the lease program is the determination of the transfer fee due on sale of the state leased properties.    The transfer fee is expected to  increase from 10% to 20% of the sales price in an attempt to disincent lease holders from selling.

 Stay tuned as we will report on the July meeting finalizing the States proposal for leased Payette Lake properties.

The following is a link to a detailed report on second quarter 2009 residential activity in the McCall area only.

mccall-residential-2ndquarter2009-report

Wednesday April 8th 2009

For the 1st Quarter residential sales had a significant increase! Through April 8, 2009 there are 34 sold properties vs 25 for the comparable period in 2008, for a 36% increase. Driving this increase – many buyers came into the McCall market pursuing short sale and bank owned properties. Additionally, price reductions on non-distressed properties combined with attractive interest rates increased buyer interest and sales of McCall real estate.

22 of the 34 solds (65%) were under $300,000. Banks are discounting prices on properties in short sale, relative to outstanding debt – in the 20-30 % range based on published sales. A natural positive affect of the absorption of distressed properties is that the new owners will almost always display an improved pride of ownership.

In the luxury home market the discounts have been extreme as available buyers are scarce. Four luxury homes sold in the Whitetail development with discounts ranging from 45-54% of original list price. One Payette lakefront home sold in the first quarter at a discount of 43% from the original listed price. These sales represent unique circumstances of seller motivation in the McCall real estate market for single family homes and Payette Lake homes.

Meanwhile, sales of McCall area land and lots were sluggish year to date in 2009. On a positive note – as lot and land prices in McCall have declined – as well as costs of labor and building materials – we may see more McCall area buyers opt to buy a building lot or land for future construction rather than purchase an existing home.

Below is the Residential First Quarter 2009 detailed report link
mccall-residential-1stquarter2009-report

Below is the Land and Lots 1st quarter 2009 detailed report link
landandlots1stqtr2009

Baby Boomers and Skiing! Source: National Ski Areas Association

The ski industry around the country is responding to a new demographic that is hitting the slopes in record numbers. Baby Boomers, part of the generation that first propelled skiing into the mainstream popularity in the United States, are staying on the slopes for far longer and in greater numbers than anyone imagined possible a decade ago.

According to an annual study conducted by the National Ski Area’s Association, the percentage of people on the slopes between ages 54-64 has more than doubled to 9.2 percent since the 1997-98 ski season. The trend bodes well for real estate markets near ski areas and in cities within easy reach of slopes. Many Boomers are looking for second homes within “Ski Range” according to the association.

Here is a link to the article

http://www.nsaa.org/nsaa/press/0809/demo-2008.asp

The 2008 year end Rocky Mountain Resort Alliance (RMRA) sales numbers are in. The RMRA reports Multiple Listing Service real estate sales totals for nine Western Mountain Resort markets. Below are the 2007 / 2008 comparisons for average residential sales price.

2007 total versus 2008 total % change

Jackson Hole 1,409,000 1,792,000 + 22%

Vail 1,169,000 1,495,000 + 27%

Telluride 1,460,000 1,269,000 – 14%

Sun Valley 855,000 840,000 -3%

Park City 843,000 799,000 -5%

Steamboat 581,000 617,000 +6%

Summit Co. 530,000 583,000 +10%

Grand Co. 368,000 374,000 +2%

McCall 290,000 251,000 -14%

For the fourth quarter of 2008 sales of Lots and Land remained sluggish, as did residential sales after a decent third quarter. October and November are traditionally “shoulder season slow” and the late opening at Brundage Mountain Resort on December 12 were all factors slowing fourth quarter sales as well as the current uncertain financial environment.

In the McCall Real Estate market there were 24 sold residential properties in the fourth quarter of 2008, compared to 31 for the same period in 2007. There was a slight pick-up in December as the Snow and Holidays arrived with 10 solds vs. 8 solds in October and November each.

In the fourth quarter we saw considerable buyer interest in bank owned (REO) and short sale properties and among other buyers targeting specific scarce properties hoping to secure purchase discounts on good long term values.

Residential inventories of single family and condominium homes in the McCall Real Estate market declined 10% in the fourth quarter from 390 to 350 through sales absorption, homes being taken off the market and a slower sales pace, representative of the current market.

In the McCall area real estate market, including Tamarack Resort, 53 single family homes and condominiums are priced over $1,000,000 – representing a strong supply of well located, luxury homes.

2009 Outlook

We are looking for a traditional increase in demand early in the third quarter when buyer interest peaks in McCall area properties. Factors that can bring more motivated buyers in our market: historically low interest rates, lower inventory levels of quality vacation homes, lower prices on premium and view properties. A settling out of economic circumstances through fiscal and monetary stimulus programs, hopefully solid progress in new ownership/financing of Tamarack Resort are other issues that are expected to impact buyer demand in a positive way.

A word about price declines in second home and resort markets: owners are often discretionary sellers with the ability to rapidly affect inventory levels rather than pricing levels. Often a seller will simply withdraw from the market and wait until market conditions improve to reintroduce the property for sale. This was the case in the third and fourth quarter where we saw a 10% reduction in homes/condominiums for sale in the McCall area.

With interest rates at historical lows and the refinancing boom well on its way, an increase in monthly disposable income as a result of reduced primary home monthly mortgages may also favorably impact buyer interest, particularly at the low to mid range. Those buyers who have been researching vacation properties and sitting on the sidelines may act on scarce properties or properties with significant price reductions.

Lifestyle Choice: Second home buyers place considerable value in the experience in addition to the direct cost of vacation home ownership. A house in the mountains where you plan to spend the better quality time in your life doesn’t always need to meet the tough criteria of your primary home. Buying at the absolute bottom is less of a concern to many with discretionary purchasing power. “If not now, then when” is the mindset we see.

Valley County ranch land and subdivision lots are plentiful and we expect to see longer market times unless prices reduce significantly going into 2009.

The pending foreclosure sale for Tamarack Resort is scheduled for February. Should a new owner and operator with solid financial strength emerge, this will be much needed positive news to all local real estate markets of the McCall region.

Below is a link to residential 4th quarter 2008 and year end market report

mccall-residential-4thquarter2008-report

Below is a link to Land/Lots 4th quarter 2008 and year end market report

landandlots2008yearend

While the sales of lots and land remain sluggish, the McCall Real Estate Market experienced a solid pickup during the third quarter of 2008 with 56 closings of homes and condominums versus 45 closings in third quarter 2007.For much of 2008, most of the buying activity has occured under $300,000 and at the higher end of the market. In the third quarter we saw increased buyer showings and pending sales in the $300,000 to $500,000 range. Buyer focus has centered on golf course properties and homes and condominiums with quick access to downtown McCall amenities. There remains a relative oversupply of inventory in all price categories, particularly in the luxury market over $1,000,000.

For more detailed information see the attached summary of the McCall Real Estate Market.
mccall-residential-thirdquarter2008-report

It is a buyer’s market for all types of land/lots/acreages in McCall Real Estate. While the Mountain Central Multiple Listing Services reports 531 listings at this time, there is an abundance of unlisted lots in subdivisions in and around McCall. For the client wanting to buy a choice lot and with the financial means to commence construction in the near term, it is difficult to see how conditions for doing so could get much better than in the current environment. For more details on land/lot/acreages in and around McCall see the attached summary at
landandlotssept2008

There have been some interesting developments in the McCall real estate scene. A statistic we keep an eye on is the date actual purchase and sale contracts are written (as opposed to the closing date) because this indicates when buyers and sellers reach terms on price and other conditions of sale as well as actual sales activity in the market. In our seasonal market we expect wide but consistent fluctuations in activity.

In 2008 contracts written were as follows: February – 7, March- 8, April – 7. Then in May, contracts written dropped to 2. In June we saw a good pickup to 14 contracts written but month to date for July there are only 4 contracts written.

What is interesting is the activity and price ranges we are seeing properties sell. While most of the sales activity has been below $500,000 for single family and condominums, the higher end of the market seems to be capturing buyer interest as evidenced by sales of golf course properties in the listing range of $459,000 to $1,150,000; an equestrian property listed at $895,000 and a Payette Riverfront property listed at $1,170,000. An explanation: solid values being recognized by buyers with higher levels of discretionary purchasing power as well as high confidence in those values being maintained.

Inventory has grown from 351 active listings of single family homes, condominiums and fractional share properties to 413 currently. Price reductions continue and very good and solid buys are out there – if you know where to look for them. For those able to purchase at this time and those not willing to wait any longer, McCall real estate presents a compelling value!

We thought this would be a good time to recap market activity to date as we enter what is traditionally McCall’s prime selling season. A buyer’s market persists in the area with very good selections of well valued homes and condominiums. As of May 31, 2008 the number of McCall active listings stood at 351 with a median list price of $399,000 (half of the listings are priced above and below this level.) The typical buyer profile we are seeing: Boise/Treasure Valley based, good incomes, know McCall, realize prices are great and are cherry picking the best inventory. And not willing to loose out again on finding a well located value here in McCall to enjoy as a vacation home or resort rental. We call those buyers SMART. Pending sales evidence the most active segment of the McCall market with seven current pending sales, all below $500,000. Year over year comparisons: For the 12 month period ending May 31, 2008, there are 128 sales reported with a median sales price of $302,500. This is a 23% decline in units for the comparable period one year earlier (May 2006 to May 2007) which posted total sales of 166 with a median sales price of $375,000 – and a 19% decline in median value year over year. Price reductions in the McCall real estate market have produced compelling values for the buyer of McCall real estate: ultra luxury townhomes are available under $500,000 in Spring Mountain Meadows; other close in locations offer affordable “mountain style” residences under $500,000 as well; cute and clean and close to downtown bungalows are available under $250,000; and custom view homes on the upper end can be purchased under $1,000,000. There has never been a better time to buy McCall real estate! We encourage you to start kicking tires, get acquainted and educated about the market and proceed with confidence.

McCall Real Estate is now a Coldwell Banker and Tomlinson Real Estate Group affiliate! The Tomlinson Real Estate Group, based in Couer d’Alene, Idaho is a regional powerhouse in Idaho and Washington. With a 70 year tenure in the region and the addition of the McCall Real Estate Company, Tomlinson Real Estate Group is now ranked as the largest brokerage operating in Idaho. Coldwell Banker is well known throughout the Pacific Northwest for its high standards of service excellence and internationally through it’s acclaimed Previews International marketing program for luxury homes. While McCall Real Estate has enjoyed the dominant market position in the McCall area, our new affiliation as Coldwell Banker McCall Real Estate will provide enhanced exposure world wide of our listing inventory of McCall area properties to national and international buyers of real estate in the McCall – Donnelly – Tamarack Resort areas.