Rick Evans, Associate Broker at Tomlinson Sandpoint Sotheby’s International Realty, provided this recent real estate information on Sandpoint:
There are some interesting real estate statistics over the first few months of 2009 in the Selkirk MLS, which includes Sandpoint and all Bonner County.
Year to date through April 20, 2009 there have been a total of 157 closed real estate transactions for a total volume of $41.5 million (includes selling and listing side). This gives an average closing price of just $132,000. Of the 130 residential (non-land) sales during this time, 120 of these were less than $350,000. Only 10 sales in just under four months that were above $350k! That makes me feel pretty good considering I’ve had closings at $675k, with a pending at $850k and another at $450k.
For the month of March there were 29 residential closings, 10 land, and 1 multi-family. Only one of these 29 residential listings closed above $300,000! The numbers definitely indicate that the first time home buyer and entry level buyers are the ones actually buying homes right now. These numbers really start to show why the few buyers at the mid to higher price points are truly in the drivers seat. I think the real sweet spot in the market (from a standpoint of value for buyers) is in the $400 to $900 price range, where many sellers are extremely motivated. The lower price point has enough demand that prices have not had to adjust as significantly. The million and up properties also have not had to adjust as much, simply because many of these property owners own their homes outright and are in a different economic bracket altogether. They simply do not have the same pressures to sell quickly.
Another interesting statistic is that the average sale price as a percentage of FINAL list price is 94%. Average price per ORIGINAL list price is 87%.
This should indicate that once a Seller gets real on listing price, Buyers are not getting a significant price reduction beyond this point. A perfect example is a listing at Schweitzer that started at $1 million a year ago (certainly an aggressive price point), then reduced to $899k, then $799k, and finally to $699k. I learned of this final price drop the day before it hit the MLS, and my Buyer jumped on it and closed at $675k. There were suddenly multiple showings over a few days, and the Seller did not have to reduce significantly beyond the final list price. The message here for Buyers is to work with a good Agent to identify the true values in this market, and when the value is found for a place that fits your needs, be ready to move forward. Don’t expect to necessarily negotiate yet another steep discount if the home is already priced below the market (although it doesn’t hurt to try if you aren’t set on buying that property).
If you find these stats interesting, please let me know. I’d be interested in any insight that others might garner from these figures.
If you are a Seller looking for a real market analysis, I’m happy to provide the figures for you to make an informed decision. If you are a Buyer looking for a ‘deal’, I’m happy to help you locate it.
Previous Post: Schweitzer Mountain Ski Resort