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.

A strong buyer’s market persists in McCall but sales are off to a decent start for 2008.

There are currently 279 single family/condominiums and fractional share properties listed for sale with 180 listings priced under $500,000, 69 between $500,000 and $1,000,000 and 30 properties are priced over $1,000,000. The selection is good in the McCall Real Estate market making this a great time to consider purchasing a vacation home or rental home.

What is selling?

Since January 1, 2008 in the McCall real estate market, 22 single family and condominium properties have closed compared to 16 properties for the comparable period one year ago. The median closing price to date is $275,000 with an average of 212 days on the market for the period ending March 14, 2008, and closing prices are averaging 92.8% of the most recent list price. For the period ending March 14, 2007 the 16 sales registered a median sold price of $331,250 with an average of 140 days on the market with closing prices averaging 95.4% of the most recent list price.

NOTE: days on market are calculated according to the current listing number. Many properities are relisted so the “list date” is freshened up which can distort this statistic.

Pending sales show what is selling currently – what appeals to the current pool of buyers and what is priced appropriately. Of the 10 pending sales in the McCall real estate market alone, 6 sales are listed under $310,000, with four pending sales in the $385,000 to $549,500 price range. Four of the ten properties are condominiums or townhomes.

We are seeing more and more well qualified buyers coming into McCall to explore good buying opportunites. While the inventory count is high, astute buyers remain cautious and look for a risk premium in their offering prices to cushion any further price deteriorations in our market. And the market is confusing, since many homes are priced over market while some are priced right on the money and represent good values.

We were excited to see McCall, Idaho and Tamarack Resort mentioned in the March 2008 edition of Unique Homes as one of “The Next Best Places” – 18 Emerging Markets”.

Unique Homes is the premier magazine for luxury real estate, reaching a highly targeted international audience of affluent individuals, real estate professionals and developers. The magazine has a distribution of 50,000 worldwide to consumers in all 50 states and 80 countries as well as to upscale locations such as five star hotels, country clubs and private jet facilities.

The publication’s web site, Uniquehomes.com, is one of the most comprehensive luxury real estate sites on the web, showcasing exceptional homes and estates and feature articles to 90,000 unique visitors per issue.

The March article mentions that expectations about what is “luxury” to an increasing number of millionaires and billionaires has undergone a dramatic shift over the last ten years. Mountain panoramas and an authentic lifestyle are of more and more interest to the affluent consumer.

These assertions are not surprising. We hear about a longing for “quality of lifestyle” from every buyer we meet and it doesn’t matter how much they’re making or how much they have. That is what drives them to McCall.

Why might now be the time to buy real estate in McCall?

1. Demographics: Market Size of Baby Boomers – The numbers are staggering. The baby boomers (born from 1946-1964) just turned 62 and account for 30% of the population. We have just the beginning of 80 million boomers starting to think about where they want to live after retirement. There are those who want to live a more active retirement than in the past who know that the lifestyle of the city will be less appealing as time passes. Mountain environments and lifestyles will be one of many that boomers will seek. Whether you fall into this age group or not, the market size of this demographic will result in competition for scarce properties, particularly in the intermountain area of the U.S.

2. Relative Value of McCall properties remain attractive compared to other Mountain Resort Towns . The Rocky Mountain Resort Alliance (RMRA) consists of eleven mountain resort second home destination locations located throughout the Rocky Mountain States. RMRA shares information on real estate sales prices and other issues. Here are the 2006 year end average prices for homes, land and condominiums for each participating resort member. The 2007 statistics will be out in a couple months and we’ll publish those as they are available.

1. Aspen $1,531,000
2. Telluride $1,232,662
3. Jackson Hole $1,126,614
4. Vail $922,128
5. Sun Valley $775,100
6. Whistler $756,964
7. Park City $691,328
8. Steamboat $430,011
9. Summit County $369,733(Keystone , Breckenridge , Copper)
10. Winter Park $320,443
11. McCall $306,933

3. Second home resort markets don’t act like primary home markets – Buying a property while prices are sliding is not an easy decision but if your goal is to retire in the next ten years now may be the time to put your plan in motion. Here’s why. Prices won’t decline forever and they will almost be certain to be higher in 10 years. In 2006 sales of primary residences declined while vacation/retirement home sales increased 5%. Waterfront resort properties, spectacular view properties – the kinds of properties you dream of for retirement – will rise the fastest because of their scarcity. Right now you have time to compare and research the market and have bargaining power when you find something of interest.

4. Strong momentum in upper end properties and commercial developments -Even though the residential market has slowed and inventories are plentiful, Payette Lake deeded properties have sold quickly and commercial development in McCall downtown is strong (Alpine Village, Hotel McCall expansion, Legacy Park renovation).

As well, Tamarack Resort has experienced very strong sell through conversion in recent offerings. With respect to Tamarack Resort, the “Elan Collection” just purchased a $17 million building site next to the Tamarack Express lift for 60 condominium private residence club ski in-ski out properties. The Elan Tamarack purchase is further validation that Tamarack Resort is attracting investment and resort developers in the industry. Developer David Disick of Park City is considered a pioneer in the private residence club market having developed the Franz Klammer Lodge in Telluride. In another strong performance, Tamarack recently sold out the second phase of the Lake Wing at Osprey Meadows with seventeen condominiums for $16.5 million.

5. City of McCall fiscal issues behind us. It looks like we are moving past the stranglehold the J-Ditch (sewage treatment) $6 million judgement has had on the City of McCall. The latest proposal to finance payment of this judgment is a sewer rate hike to pay off bonds to retire the financial obligations relating to the judgement. Seems citizens, city council members, business leaders are on the same page to get it done and focus on all the other important growth issues facing McCall.