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
