THE MARKET? What is happening in North Idaho?

What's with our market? In one sentence, you can sum up our experience in 2008. Those with capital are holding and waiting, those without can't get the financing the expected.

The past year has been clouded with uncertainty and a lack of consumer confidence. Unreasonable asking prices based listings not closed sale, buyers expecting fire sale pricing, first time home buyers mystified by 100% financing on Monday and 20% down required on Wednesday. We've seen buyers anxiously writing offers one day, but then never hearing from them again. However, we've also sold properties priced right within 30 days.

By the numbers.

As the affordability of homes changed (witnessed in the average price/square foot), sales volume declined. We're still a bargain compared to major metropolitan markets, but we aren't at the rock bottom prices that they once were.

Source: Selkirk Multiple Listing Service, Bonner County Single Family Residential Closed Transactions.

What does that mean for you? Is it a good time to buy or sell? What does 2009 hold in store? And what changes should we expect to see coming in the future? If I could only find a reliable crystal ball, I'd be happy to share all the answers with you.

The remainder of 2008 will probably be dominated by a "wait and see" attitude. At the same time with prices depressed, inventory at all time highs, and sellers getting more realistic, it's a great time to consider a purchase, either as an investor or as an owner occupant. Financing options are still out there including state programs offering up to 100% financing for first time home buyers.

What will 2009 bring? Our expectation for 2009 is more of the same: a decent amount of activity, reasonably stable prices, good buys to be found, and foreclosures may become a more significant component of the market, overall a continued buyer's market

Looking further our market has all the fundamentals that make this a very desirable place to live; including one of the largest lakes in the country, some of the best skiing in the region, open spaces, clean air, good accessability from the local transportation network, access to everything that metropolitan Spokane and Coeur d'Alene has to offer, and comparatively affordable housing options. The long term prospects for Bonner County and the surrounding region are excellent! Looking back on today, three to five years in the future, I think we will be shocked by the "bargains" we passed up!

What changes should you expect to see in 2009? More creativity by builders, developers and lenders. New sources of lending and new lending vehicles. Structures like rent to own (RTO) where a buyer is allowed to apply some percentage of their rent to their down payment, or stated purchase options set for 12 or 18 months into the future, private money sources may play a much more significant role, seller financing and developer backed financing options like interest rate buy downs will become more prevalent.

Another sign of the times are the mergers and consolidation seen in the local sales offices. In fact our office recently announced it's merger with Riverstone Realty and we are now Century 21 Riverstone. The merger combines our strengths and with more than $60,000,000 in combined representation, we are by far the number one office when ranked by individual agent production and second largest office when ranked in terms of overall sales.

So how does the warning on the roller coaster ride go? Remain seated please and hold onto your hats and glasses ... well the same could be said for the real estate market. Need to talk with us about your property or just need a shoulder to cry on? Log onto our new real estate blog at www.blogsandpoint.com. We look forward to hearing from you.