Chris Chambers of Tomlinson Sandpoint Sotheby’s International Realty guest blogs today.
I enjoy following the data reports that show the trends in our local market. There are opportunities to find some pearls of wisdom and try to overlay them on the predictions for the future – it is human nature to learn from the past.
I am especially fascinated to compare these observations with the current feelings and confidence in the marketplace. Consumers now have access to a huge amount of data and this can sometimes drive opinions to wide extremes.
Interestingly, I’ve observed that when the market is hot, the tall stories and feelings of euphoria seem to fall short of reality. Conversely, when the market is off, the feelings of fear and despair also fall short of reality. Clearly, we have had a price correction in our market and 2008-2009 was quite a time – especially for Sandpoint, a town that relies heavily on second home buyers and retirees. But when you look at 2009 YTD and compare it to 2010, the trend tells a story that is a bit different from the street talk we all participate in – including me! You can look further back than 2009, but what’s the point?

Sandpoint from Gold Hill
Take for example, a broad brushstroke of all of the residential listings in our MLS (multiple listing service). This includes Bonner and Boundary County (and a sprinkling of a few others like Sanders County in Montana and Kootenai County). If you just try to look at the big picture – you will see that things are improving. Here is the summary of the data:
| All Residential Listings |
2009 YTD |
2010 YTD |
| Total Listings |
1836 |
1597 |
| Percent Sold |
19.44% |
25.42% |
| Number Sold |
357 |
406 |
You can see the market activity has improved with 14% more listings sold and a reduction in inventory of 13%. The other good news is that while other “bubble” markets across the United States have seen extremely large increases in their prices, followed by extremely steep declines, that really hasn’t been the case in the Spokane/Idaho Panhandle region. Prices in this area are definitely lower than where they were a few years back, but, without the radical free fall that other larger markets have seen.
The increase in sales activity combined with the reduced inventory indicates that buyers are definitely coming back into the market. But, as a seller in this type of market you still need to be priced correctly in order to capture the attention of these prospective purchasers. When this reversal happens, it is also typical that the best inventory is snapped up first since buyers will always gravitate towards buying the BEST when the softer pricing allows them to do so.
At Seasons at Sandpoint, we’ve seen similar trends. The interest in this community has increased and the buyers are buying again. Seasons is capturing a decent share of the market because of its’ unique “in town AND on the lake” location. The six sales realized thus far at Seasons in the summer of 2010 shows that Seasons seems to have solved this rather simple puzzle. That is, when you have the best, and you have priced it correctly, you will always find a way to help people to see the reality through all the hype.
I welcome your questions, and feel free to contact me for more information.
Chris Chambers
Tomlinson Sandpoint
Sotheby’s International Realty