Mountain Town Real Estate - The Silver Lining in a Down Market

Published: December 16, 2008

Despite the ailing economy, small resort towns like Sandpoint, Idaho (5 hours from Seattle) have been affected to a lesser degree mostly because people WANT to live here, and because now, with falling housing prices, they are finding great values relative to better known resort communities.

Savvy buyers seeking vacation/investment real estate with natural amenities such as lake, mountains, a ski resort and a Jack Nicklaus Signature golf course are finding it here. and the Sandpoint market is out-performing the national trend.

Jeff Bond, broker at Tomlinson Sandpoint Sotheby's International Realty reports the brokerage had their best month ever in September 2008 in terms of closing sales volume. “Sandpoint has some real values in the high end real estate market and Idaho has a less expensive entitlement process,” explains Bond, “Savvy buyers are doing the research, looking for the best buys and buying here.” October and November were both really good, with December falling off due to stock market volatility 45 days earlier. January 09 looks like another record month.

Waterfront property on Payette Lake near McCall and Tamarack, Idaho or on Lake Tahoe costs $20,000 to $30,000 per front foot. Waterfront property on Lake Pend Oreille in Sandpoint averages $7000 to $9000 per front foot for an arguably more desirable lake.

“I don't want to downplay that it hasn't been difficult,” said Bond, “overall, our numbers are down. We have 3 or 4 times inventory to sales, and sellers are feeling it. We have double the realtors we had in 2003 so the individual realtors are also feeling it. The feeding frenzy is over and now and it's all about pricing the product correctly, and getting back to good solid business.”

Progress of current luxury real estate developments:

Seasons at Sandpoint, a residential resort and spa on the shore of Lake Pend Oreille blocks from downtown, broke ground on the third phase of their community November 2008 and have sold one of the four townhomes for $2 million.

Condominium sales at Seasons have been stable with $5.7M in overall volume so far this year. Encouraged by the demand, the new phase, a collection of 4,000 square foot town homes will be their most luxurious product to date with natural finishes, Pacific Northwest-inspired interiors with clean modern lines and spectacular views of the lake and mountains. Residents at Seasons enjoy access to a private beach and marina, concierge, spa and fitness facilities. The project is scheduled for completion by Q1 2010. Prices start at $2.1 million for the 4,000 square foot waterfront homes.

The Idaho Club opened the Jack Nicklaus Signature golf course over the Labor Day Weekend to rave reviews. They received final permitting in October to proceed with their community dock plans. Home sales in this gated community have been healthy with $16 ½ million in sales closed year to date, and another $16 ½ million under contract and/or reservation.

Schweitzer Mountain Resort, the 2900-acre ski and summer resort located 11 miles up the mountain from Sandpoint, is reporting ahead-of-pace season pass sales and lodging occupancy for this time of year. After a near-record ski season coupled with a record summer 2008, the resort hopes to announce a slope side real estate development in the Summer of 2009.

Sandpoint, Idaho located in the northern panhandle, 90 minutes from the Spokane International Airport, and 60 miles south of the Canadian border, sits on the shore of Lake Pend Oreille against the foothills of the Selkirk Mountains. Population 8,000. www.visitsandpoint.com

For more information:
www.seasonsatsandpoint.com
www.theidahoclub.com
www.schweitzer.com