For the 4th Quarter 2011 ( Oct. Nov. Dec. ) there were 41 properties sold compared to 51 in the previous years same period for a 20% decrease. 25 of the 41 contracts sold were ” distressed properties ” , 60%. The lack of snow this year has had an impact on the 4th Qtr market also as holiday crowds were not here .

Are we at the bottom ? Buyers motives are still being driven by discounted properties , but the inventory levels for distressed properties is at a low point since the down-turn in 2006. The pipeline of distressed home-owners is shrinking rapidly also . Notice of defaults ( NOD )have declined by 70% in the 4th Qtr. of 2011 compared to the same period in 2010 . This trend of shrinking discounted properties is starting to catch up to the market , as buyers continue searching for inventory that doesn’t exist.

As buyers turn there attention to ” non-distressed propeorties ” , they also find less inventory to choose from as sellers have withdrawn from the market for better times . This spring could be a ” tipping point ” for the McCall market to see if the current ” frugel “ trend continues , or buyers will start to move toward normal inventory and valuations.

McCall Residential 4th Quarter2011 Report

LandandLots4thQtr2011

A national survey performed by Coldwell Banker has reported that 87 percent of 1300 agents/brokers who were polled have clients who already own or are looking to purchase an investment property; 22 percent of agents report that at least half of their Boomer clients either own or want to own investment properties.  Financial security, appealing prices of vacation/investment properties, adequate rates of return on rental properties and wide fluctuation in stock market averages appear to be driving factors leading to a greater comfort level/lower perceived risk and satisfactory returns to buyers in this market segment.

For the 2011 ” Peak Season ” period ( July-August-September) 48 properties closed, compared  to 54 for the same period in 2010 , for a 12% decrease.  Twenty five of the 48 sales for Q3 2011 ( 52% ) closed under $ 200,000.  Most notable in looking at the statistics is the sharp decline in the number of sold “distressed”  properties.

Eleven of the 48 closings were either bank owned or short sales for 22% of the total,  down from the 50-60% range of total in the previous year. These numbers are consistent with the decrease in filed notice of defaults  in Valley County.  The thin inventory of distressed properties to select from has driven buyers to non-distressed properties represented by much less motivated sellers unwilling to match closing prices on sold comparables.  This has created a somewhat stalled market.

Below are links to Q 3 Summary Reports for Residential and Lots and land

McCall Residential 3rd Quarter2011 Report

LandandLots3rdQtr2011

For the 2nd quarter of 2011 ( April May June )  49 properties closed  sold) compared to 57 for the same period in 2010, for a 14% decrease.  Available single family properties for sale (238)  have increased to normal ” selling season”  levels from winter.   Single family distressed property inventories are low at 19 and  buyers are now moving to non-distressed properties that are priced to market. 

In a second home market many sellers are in discretionary positions,  unwilling to discount against distressed properties, so we would characterize this inventory segment of the market as somewhat “stalled “.    A total of 65% of all closings in April and May were distressed properties, but only 26% were distressed in June.  Notice of default filings are down over 60% .

Is this a permanent trend, or are the banks holding  “shadow inventory ” ?   We think distressed properties inventories will continue to decline and we will see a continued level of interest in non-distressed properties and an eventual stabilization of prices as buyers purchase.

McCall Residential 2nd Quarter2011 Report

LandandLots2ndQtr2011

This is a nice piece of data to begin your research for that dream mountain retreat . It shows McCall remains a very affordable vacation home market with a median price of  $245,000 for a single family home ( see link below for all locations ) 

Although McCall is less developed commercially than arguably all of these comparisons , it also shows how valuable the qualities McCall has are.  Affordability , the accessibility of recreation “out the back door “  , the quality of the outdoor experience due to lack of people pressure , deep water mountain lake ,  vast public wilderness adjacent to town . These are fundemental attributes that cant be duplicated like amenities can . The next two closest affordable location listed are Winter Park at $329,000 , and Crested Butte at $350,000. The most expensive median home price listed is Whistler BC at $ 1,095,000.

 Western Mountain Destinations 2010 Year End Stats

The 1st Quarter of 2011 ended with 36 properties sold (in  McCall only)  compared to 35 for the same period a year ago.   Of the total, 66% or 24 of the 36 solds,  were either short sales or bank owned.   Of the 36 sold,  22 were priced under $200,000.

 Even though the available inventory of single family ”distressed properties”  is at its lowest point in 2 years (8 properties out of 96 total),  the buyer pool in the first quarter was still dominated by the “discount psychology “.

Because inventories in total are down 50%, we are starting to see buyers find value in the  “non-distressed” properties.   Inventories are traditionally down this time of year but usually build in the spring as we approach the summer selling season;  so far that has not happened as sellers are hesitant to enter this market, especially those who not compelled to compete with heavily discounted distressed properties.

This may be changing as the supply continues thin and sellers feel the market stabilizing.   Of the current 96 single family residences, 53 are listed under $300,000 and only 18 of these properties are listed under $200,000.   Priced to market, ”non-distressed” homes and condominums in the McCall real estate market are generating a lot of interest currently.  

McCall Residential 1st Quarter2011 Report

LandandLots1stQtr2011

A thumbnail sketch of the McCall Real Estate Market indicates a reasonable indication that the market is stabilizing in McCall with much more affordable options for primary homes, second homes and luxury vacation retreats. 

For the year ended December 31, 2010 for the McCall market (not including Donnelly, New Meadows or Tamarack Resort) there were 215 closings of single family homes, condominiums and townhomes, a slight increase over the 193 closings reported in 2009.   Of interest is that 47% of all closings were in the “distressed property” category: 103 closings were comprised of 29 short sale properties and 74 REO (bank owned) properties.  In 2009, distressed properties accounted for 37% of sales: 71 sales stemmed from 24 short sale transactions and 47 REO transactions. 

Inventory totals as of December 31, 2010 are:   single family – 166, condominium and townhomes – 51  for a grand total of 217 units.    On a postive note, of this total, there are only 11 short sale listings and 11 REO listings for 10% of the total.    The market of buyers has absorbed a good portion of the distressed inventory and while banks will continue to release  distressed properties  we expect  to see a more orderly liquidation of the next wave of REO offerings and improving market conditions overall.  Economic sentiment is turning positive, interest rates are at historic lows,  the stock market is rebounding and buyers are starting to realize that the worst just may be behind us.   None of this was the case one year ago.

Here are the 4th Quarter 2010 Market Reports  for residential , lots and land for the McCall area only .

McCall Residential 4thQuarter2010 Report

LandandLots4thQtr2010

There are plenty of reasons to buy your retirement home now – even if you don’t plan to live in it for years

Buying a retirement or vacation home is not an easy decision while prices are sliding.   You’ll never know when things are bottoming out and if you jump too soon you may miss an even better deal that could have been yours just by waiting.   But, if your goal is to retire to a vacation or resort area in a decade or so and if you can afford to buy now,  today’s tepid housing market may offer a great opportunity to put your plans in motion.

Home prices won’t weaken forever and they are expected to be higher in 10 years.  Waterfront and resort properties and those with spectacular views -  just the features you dream of for a retirement home  – can be expected to rise the fastest.   Yet  for prime properties in today’s market competing bids are rare and sellers are usually eager to deal.   You have bargaining power  and time to research your choices.   Mortgage rates remain low.

Equally important, a  second home/vacation/retirement home in the mountains where you plan to spend a majority of your time doesn’t have to be subject to the same rigorous evaluation as other investments.   In theory your retirement home represents an investment in a lifestyle so why would you emphasize a rate on return on this investment in terms of dollars?     Isn’t a better quality of life, improved health, and reduction in stress priceless?

None of this means you should be rash.  The whole point of buying while the market is soft is to have time to think things through.  Second homes come with a myriad of expenses and adjustments.   Now is the time to sort it out.

Other reasons to consider buying a second home now as opposed to when you retire is you start making the area part of your life right away. That helps you build a social network  which will ease the transition when you move.  Kids grow up and change jobs and cities.   One way to bring the family together more often is to have a fun and familiar house in a great location – so buying a home when the kids are still at home is a bonus.   The kids will feel invested in the place, make friends and want to visit more often when they are older.

If you are interested in assessing how McCall Real Estate values compare to other resort areas in the Rocky Mountain Resort areas, see our most previous post.

The 3rd. Quarter Multiple Listing Service Sales (MLS) statistics from the WMRA (Western Mountain Resort Alliance) have been published.   The WMRA is a group of Realtors from various Mountain Resort Towns who meet twice a year,  sponsor seminars  and share information.   McCall remains the most affordable destination for real estate prices among the participants.   A link to the report is below.

Here is the average residential price for homes sold in the months of  July,  August and September in each participating Mountain Resort area:

1.   Teton ( Jackson Hole )                     $  2,088,576

2.  Vail                                                                 1,315,214

3.  Whistler                                                       1,232,958

4.  Big Sky                                                             883,333

5. Park City                                                          859,710

6. Breckenridge/Keystone/Copper        844,567

7. Steamboat                                                    821,756

8. Sun Valley                                                    740,820

9. Tahoe                                                              685,531

10. Crested Butte                                            544,884

11. McCall                                                           241,841 

* Not reported     Telluride , Winter Park , Aspen/Snowmass

Western Resort Alliance 3rd QTR. Results

Single Family homes in the 3rd Qtr. of 2010 saw a slight decrease in sales from the same period in 2009 . There were 57 closings in the Qtr. compared to 64 for the same period in 2009.

In the 3rd Qtr.( traditional buying season ) , buyer interest turned to a broader price range of properties as opposed to buyers previous concentration on under $300,00 distressed properties . This is normal during the summer peak season , but was evident also because the supply of  distressed and discounted properties is being absorbed . Of the 57 closings for the 3rd Qtr.  , 29 ( 51% ) closed over $200,000 , which is up 25% from previous qtrs.

The number of properties for sale has remained stable at 183 vs 181 at the end of the previous Qtr. , but available properties under 300,000 has decreased , as available Short Sale and  REO ( bank owned ) inventories are at there lowest point in a year .

Financing and appraisals remain difficult on higher end properties as banks are cautious and tight with guidelines on comparative sales.

McCall Residential 3rdQuarter2010 Report