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November 30, 2008 12:08 PM

North Idaho Real Estate Market Conditions as of Fall 2008

Like much of the rest of the country, all of our markets are down, but areas such as Naples and Clark Fork were suffering long before the rest of our market. In Clark Fork pricing went up, much in relation to its proximity to Hope, which is one of our most desirable areas.

Unfortunately, sales there have not been great. In our MLS market in the last two years, we have sold over $400,000,000 in inventory. Out of that, only $15,000,000 has sold in the Clark Fork area. This is the lowest, per size and population, of any area in North Idaho. (See the figures below) What this means is, if you love the area, then it is great to buy there, but if you don’t want to be upside down on price, and hope to have your investment appreciate, other areas might be a good suggestion.

I was the most successful agent last year in the Hope area, selling five properties (out of 24 sold) in Hope. This is one of my favorite parts of North Idaho. However, at this point, I can’t suggest even this area as a great buy. You are farther away from everything, including hospitals, shopping, and basic needs. Everything is more expensive, and schools aren’t as good as the other areas. Still, for water views, there are few places like Hope, Idaho. On the water properties there, even in this down market still routinely sell for well over $1,000,000.

Naples, Bonners Ferry, and Priest River have much better prices, and are more convenient to everything, yet you can still get that great North Idaho feel.

Nearer Sandpoint there is even more to offer, and buyers get water views for the same price or lower. If you are looking for bottom line deals, then Naples and Priest River are going to have better pricing.

Unfortunately, Coeur d’Alene became one of the most popular growth cities of the last ten years. Beautiful place, and cool stuff happening. But they overbuilt. A major news show called Coeur d’Alene and Hawaii the two worst places to invest in real estate in the nation. Still, it is such a vibrant place with good industry that the belief is they will recover faster than other areas. Plus, there is so much inventory available there, that there are very good opportunities for good buys. However, if things don’t recover, there is already three years of inventory on the market as of today. Again, in order not to be upside down, someone buying there will have to be betting their market will recover. (See figures below)

Our market is also down, but last year was the best year we have ever had. Our numbers are ahead of 2003 and even 2004. We are having steady growth, but not nearly as fast as Coeur d’Alene. Still, if one had to choose between Clark Fork and CdA (Coeur d’Alene), then by all means go CdA. I report on all of these areas every month, and believe I have good insight.

I think if you want more big-city amenities, CdA is great. The projections for growth are for CdA to have a 250,000 people in twenty years. It is already the bedroom community for Spokane, and the metro area is approaching 1,000,000 within a decade. This is not a big city, but I moved here to become part of small country charm, and get away from that kind of life. I guess it is up to each of us to decide what we are looking for.

Gary Lirette, REALTOR Tomlinson Sandpoint Sotheby’s International Realty

208-610-1384

800-282-6880

Gary is the host of the North Idaho Business radio show, and specializes in waterfront and view properties in Sandpoint, Idaho.

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