2007 homes/land sale price data for N. Idaho (Athol: days on market, real estate)

[Sage of Sagle]

Hey folks,

We've been having various discussions about the strength or weakness of the real estate market in Idaho, and I had been looking for some hard data.....found it....Selkirk MLS data through 8/20/07.....no 2006 data, but 2005 data provided for comparison....

This covers Bonner and Boundary counties, so from about Athol north to the Canadian border...

Average/Median selling price (days on market)
Bonner County:
Homes - 2005: $255K/$210K (72) >> 2007: $347K/$346K (93)
Land - 2005: $141K/$99K (98) >> 2007: $200K/127K (114)
Boundary County:
Homes - 2005: $165K/$145K (110) >> 2007: $227K/$169K (85)
Land - 2005: $83K/43K (200) >> 2007: $105K/86K (123)

During the 2005-2007 period, both counties saw about a 20% reduction in total homes sold, and a 30-50% reduction in bare land sold. So certainly less is selling, but it's going at a MUCH higher selling price for those who are patient selling their home or land.

One other noteworthy thing I saw was that in 2000-2003, only one home in this MLS area sold for over $900K, compared to 57 homes over that threshold in 2005, and as of that report on 8/20/07, there were 96 listings over the $900K mark (out of 1300'ish residential listing). And there are 1700'ish vacant land parcels listed.

[Sandpointian]

The implosion of the credit market, as evidenced by WAMU and the drying up of the second mortgage market, will make it really tough for some going forward. Developers who need to offload properties will be in trouble. Sellers who need to sell are facing borrowers who may not be able to get financing. Propsective buyers increasingly need 20% down and perfect credit--thus reducing the pool of able buyers. All three point to a slower market going forward, with downside price pressure on developers, and longer days on the market. All three combine for downside pressure on housing prices for existing homes, although the story is less about value per se and more about financing.

Now, the impact of these factors on the NID market will depend on the extent to which our market relied upon seconds, sub-prime, etc. If not much, then the impact will be less so.

Interesting times ahead, with 2008 forecasted to be a tough year for resets. I hope you are all well and flushed with cash and prepared to weather the storm.

S