Sales of single family homes and condominiums picked up considerably during the second quarter of 2010 but while the number of closings increased by nearly 33% compared to second quarter 2009, the median price decreased to $195,000 from $230,000.

In the second quarter, buyer interest has remained keen on distressed properties – short sales and REO (bank owned) properties, primarily under $300,000; and on those non distressed properties priced to sell to compete in this very price sensitive, buyer’s market.    The home buyer’s tax credit which expired April 30 drove a more motivated group of buyers into this market through April, but in May and June buying activity decreased significantly.  Two factors:  the buyer pool shrank having had purchased previously; bad weather, even for McCall delayed travel here to look at available inventory. 

WHAT HAPPENS NEXT,  as we progress into a more traditional selling season:  the weather is good, buyers are waking up and looking at property, even at the high end, and interest rates are lower than we have ever seen them.  A local  McCall bank was quoting 4.4% on the 30 year fixed, conventional rate mortgage loan with a half a point; and the jumbo rates on loans over $414,000 are showing only a very modest differential at 4.7% on a 30 year fixed rate loan with a point.  Those rates should make things happen, even at the affluent end of the market, why pay cash when rates are this low?

Buyer mentality remains firm on pricing but those well located, well designed and well maintained scarce properties that are well priced are being shown and the astute buyers  - at any end of the market -  especially those who have been looking for just the right property, are negotiating and exercising reasonable flexibility.

It is difficult to imagine better buying conditions in this McCall real estate market and we are recommending to our buyers to negotiate with common sense so as not to miss a good buying opportunity.   Stalemates have become too commonplace in this market – we are seeing buyers missing out by not exercising flexibility when they find the right property.   

McCall Residential 2ndQuarter2010 Report

Land and Lots Market Report Second Quarter 2010

The second Quarer of 2010 saw a  large 720 % increase in sold lots over the same period last year  as developers of  distressed subdivisions have discounted significantly to attract builders acquiring multiple properties to land bank for current and future construction. New construction build to suit under $275,000 including the lot has drawn alot of interest as quality re-sales in this price range are becoming difficult to identify, and buyers become increasingly frustrated with the short sale and REO process for marginal properties.   

Inventory remains high with 423 properties for sale in and around McCall , but the fundamentals remain that in-town scarce view, lakefront or public access properties continue to hold there value .  

LandandLots2ndQtr2010

The WMRA ( Western Mountain Resort Association) 2009 year end real estate sales statistics have been published.  The report compares Mountain resort towns  in the Rocky Mountain states, including McCall.   The statistics are a a bit broad as they include  locations surrrounding the specific resort town also, but reveal that McCall again remains a very compelling value.  Below are year end average sales prices for 2009 in each market reporting.

Teton (Jackson Hole)      $ 1,267,000

Vail                                              1,018,000

Telluride                                       982,000  

Park City                                      779,000

Big Sky                                           711,000

Whistler                                        671,000

Sun Valley                                   654,000

Tahoe Sierra                               613,000

Steamboat                                   567,000

Summit County                         375,000  (Breckenridge,  Keystone,  Copper)

Crested Butte                             367,000

Grand County                            316,000   (Winter Park)

McCall                                       226,000

Pending sales in the McCall market continue to be way ahead of last year, but there are still questions to be answered to see if the increased activity has any legs.  Two trains of thought, one is that the first time home buyer tax credit is the main driver in the bump (local primary occupant’s), and its expiration, the soft  job picture,  and overall economics will slow the surge, and  that we are in a ” mini-bubble “ on our way to a ” double dip “.

Even though we are seeing inventory levels being reduced thru sales absorbtion , there still remains alot of ” shadow inventory “ ( distressed properties still being held by lenders waiting to come onto market ).  

 Others believe in a long term turnaround saying consumer psychology has become more optimistic with the stock market increases, lots of consumers holding cash ,  low cost of borrowing , and historically low home prices . The longer term picture is supported by a belief that home prices are at or near the bottom , and they will stay there ” flat ”  for the next few years , so as scarce inventory presents itself there’s not alot more ” downside ” price pressure left , and now is a good time to purchase . You could also argue that it may be likely a more tax friendly political environment may be present in the next political cycle.

Having said that , keep in mind that 60% plus of McCall  homes are second homes , or investment homes used as vacation rentals , so motives , timing and discretionary decision making  are factors driving buyers .

This is our first commercial market report, so we thought it might be helpful to begin by summarizing the fundamentals of the McCall commercial market environment and the constant attributes that will always be present in either a up or down cycle for any buyer or seller that is interested in the sector.

 McCall is a “resort” town dependent on an influx of  visitors and  second home owners from surrounding areas and regionally during prime season and holidays.  We can break the year down like this,  give or take a few days… .

There are approximate. 42 “Prime” holidays where maximum revenue potential is possible  – Thanksgiving, Christmas, New Years, Memorial Day and July 4th , Spring Break, Presidents Week, Labor Day.  

There are approximately 120 “Peak” days where recreation is at its best - July, August , January, February-  and weekend crowds are consistent.

That leaves the tough part that most businesses need to overcome and plan for - “Shoulder Season “ amounting to approx. 200 plus days or approx. 55% of the year when there is very few people in town.  September, October, November, part of December, March, April, May.   This can vary depending on when the Skiing starts and how early the summer begins.

Thus,  most service/lodging/recreation businesses should have a very low cost basis of operation on fixed expenses to survive during shoulder season.  Since the contraction in the real estate market , and the distress at Tamarack , non-service commercial (Light Manufacturing/Distribution Building Trades/Office Professional) that support that sector have been hard hit also.

This has presented some real opportunities for unique and scarce commercially zoned vacant land and properties that have historically never been available.    The challenge is what kind of business will support the purchase while a drawn out recovery takes place, and how long before some inventory absorption takes place and appreciation begins on the real estate.

McCall Commercial Report

McCall Commercial Report March 2010

Residential and Land

The story line for the first 3 months of 2010 is the obvious continued spike in sales activity of properties under $300,000.  Of the 35 residential sales for the first quarter,  17 were either “bank/seller short sales” or REO (Bank owned Real Estate) for 48% of the sales.

Year over year:  First quarter closings amounted to 35 closings,  up 29% in the first quarter of 2010 compared to 27 closings in the first quarter of 2009.  

Of the 35 sales in the first quarter, 24 sales or 68% closed under $300,000.    March showed increased activity in properties over $400,000 with 6 properties closed compared to Janurary and February when 20 of the 24 properties closed under $400,000.

Lower prices on quality building lots are beginning to attract more interest as the supply of  desirable existing built product is very scarce – especially in the mid to upper end of the market in the range of $500,000 to $1,500,000.    The combination of  softer  prices for building lots,  building materials and labor is making a custom build a more competitive value proposition relative to values of distressed properties.

Another statistic that stands out is the high number (also 35) of pending (sold but not closed) properties as of March 31, 2010.    In recent months, pending sales totals have been consistently numbered between 12-15.    As of March 31, 20 of the 35 pendings are listed under $200,000.

The market has increasingly absorbed existing inventory as listed single family residence’s total 129 and 63 condo/townhomes for a toal of 192 properties currently for sale.   Of the 192 properties for sale, 98, or 51% are listed under $400,000.   There are currently 32 “short sale”  and  8  REO ( Bank owned)  properties for sale for a total of 40 distressed properties or 20% of the total available inventory.

McCall Residential 1stQuarter2010 Report

LandandLots1stQtr2010

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%