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.
