Word on the Street

According to local real estate appraiser, Patti Lentz, ”For the year-to-date last year, we had only 11 ‘market’ sales (meaning properties that were not short sales or foreclosures)  that sold for a total of $5 million.  So far this year, we have had 28 market sales for a total of $21 million, an increase of over 300% in terms of dollar volume and 15% in terms of the number of sales!  If market and non-market sales were combined (these include REOs, short sales, etc), last year we had 35 sales for a total of $17.5 million and this year we have had 71 sales for a total of $28 million.  Again, significant increases in the number of sales as well as dollar volume.  Our inventory is down as well.  At this time last year, there were 1,475 active listings and presently we have 1,320 active listings, a decrease of over 10%.”

In 2009 local historian Chris Millsap wrote an article for Sun Valley Magazine on “ Ketchum’s few remaining emblems of an original identity.” Millsap identified the three iconic brick buildings on Main Street built during the 1880’s mining era by the Lewis family. Windermere Real Estate recently listed one of those buildings for sale, the historic “Issac Lewis First National Bank building”, which was constructed in 1884. For the past 21 years, the building has housed Chapter One Books. The town’s bricks were fired at a kiln near Knob’s Peak (today’s Knob Hill), a landmark knoll on the northeast edge of town. In the early 1990’s the Chapter One building was seismically re-enforced. The building contains 1966 square feet and is air conditioned. The rear of the building was remodeled in 2010.  It is currently owned by Bob and Mary Hastings.  For more information on this listing, contact Dan Gorham at 208-622-2700.

We’ve re-printed an edited portion of Millsap’s article below for fellow history buffs to enjoy.

In the 1880s, as Ketchum’s economy gained traction under the wheels of  Horace Lewis’ brimming ore wagons, his father built the first of what would become the mining-era’s iconic brick buildings and became Ketchum’s first real estate mogul, a pioneer’s Donald Trump.

“I have virtually made the town, at least I have expended more money and labor for it than any ten other men of the country all put together,” he wrote in 1891.

In the spring of 1884, Isaac Lewis joined George Griffin to build the First National Bank of Idaho on South Main Street. The red brick building is today home to Chapter One Bookstore. That same year, Isaac Lewis picked a spot across the street for another effort, the Lewis & Lemon General Store. Forty years later, when Al Griffith retired as the area’s mining superintendent, he set up a more relaxed venture, Griffith Grocery, in the handsome brick building with three archway windows. After decades of mixed use and vacant stretches, until 2010, when after an extensive and award winning remodel, the Vorms’ Cornerstone Bar and Grill opened its doors to an enthusiastic welcome.

Lewis added his final landmark to Main Street in 1887. Two blocks north from the First National Bank, at the intersection with what is now Sun Valley Road, he built his largest project yet. Comstock and Clark, a dry goods provider, was Lewis’ first tenant there, but it was the Lane Mercantile, a supply headquarters for the Valley’s sizeable sheep ranching industry, that would leave its mark. The “Lane Merc” building is prime real estate—signified by the “Eat More Lamb” painted billboard—and until recently  housed a symbol of a different era: Starbucks Coffee.

Please visit the home page Market Review for  the 12th anniversary edition of The Windermere Report, which has earned its reputation as the most definitive resource for data on the Blaine County housing market. Overall, 2011 was a robust year in Blaine County real estate for buyers, and a heartbreaking year for many sellers. The number of closed transactions increased 23 percent, but overall dollar volume fell 15 percent as the median sales price per transaction was 34 percent lower than in 2010.

The drop was due, in part, to lower valuations in all market segments and to a steep increase in lower end sales. That trend lead many north valley buyers to conclude that real estate prices are now at, or near, the bottom and this is an excellent time to pursue their lifelong passion of owning property in the Wood River Valley.

Activity in the condominium/townhouse segment of our resort marketplace was also encouraging. According to the Sun Valley Board of Realtor database, 156 resort area condos sold in the past year, compared to 111 units that sold during 2010.  That’s a 40 percent increase and the highest number of condo units sold since 2007. I see this trend continuing  in 2012, with buyers who had postponed plans for a second home or vacation property during the economic turmoil, now taking advantage of attractive pricing, low interest rates and plentiful inventory.

For the Hailey and Bellevue single-family market, the bottom appears to be a very soggy place. In 2011, of the 94 single family sales recorded, 61 percent were either foreclosed properties being re-sold by banks or short sale transactions. Those distressed properties sold for an average of $104 per square foot, or 22 percent less than the distressed sales in 2010. We believe the south valley market will continue to struggle due to the inventory of foreclosure homes that have not yet been re-listed for sale.

Nonetheless, there are reasons to remain hopeful that real estate values will begin to rebound in 2012: 1) home prices and interest rates have become more affordable, 2) the bank-owned properties are being bought up quickly, and 3) many national experts predict, with the national economy beginning to recover, the number of homeowners falling into default will decrease in 2012. With those factors in mind, families and retiring baby boomers will continue to seek out healthy communities that offer amenities that we enjoy such as recreational opportunities, excellent schools and quality health care.

If you or someone you know have a question or need professional real estate advice, please don’t hesitate to call me. In the meantime, I hope you find our “Year in Review” newsletter informative and I look forward to working with you in the future.

Sincerely,

Dan Gorham

By Dan Gorham

With the year now in the history books, it’s time to look back on the Sun Valley real estate market and search for the biggest story of the year. There are a number of contenders. First, the number of closed transactions of housing units in Blaine County leaped back to levels not recorded since 2006. Yet the total dollar volume still lingers at about 50 percent below the peak, as more units sell at greatly reduced prices.  In the resort area of the north valley, the absorption of new condo units is noteworthy. In Ketchum, buyers lined up last spring to purchase luxury units at Chilali Lodge, with 19 sales generating about $20 million in an eight week period. Likewise, buyers absorbed the new bank-owned units at The Timbers and Ski View Townhomes. Just two units remain at the Hourglass Townhomes and sales were brisk all summer for the smaller condo units at Elkhorn Springs.

All of which leaves us with an interesting question for 2012. Now that the newer condo projects have all but been sold out, and there are no new projects on the drawing board, what will buyers be attracted to this spring? Many of the condo complexes in the north valley were constructed in the 1980’s. Is a remodel and restoration boom about to begin? Or will buyers bypass the condo options for a single –family alternatives. According to the Western Mountain Resort Alliance, the inventory levels for homes and condos for sale in Sun Valley has fallen 12 percent in the past year. If that trend continues, the answer might be a combination of both scenarios mentioned above.

In the meanwhile, look for our Windermere 2011 Market Review later next month. The annual four-page publication is filled with statistics and data on the Sun Valley real estate market and has proven to be a handy resource for sellers, buyers and investors. If you would like a complimentary copy sent to you, please send a current e-mail address to www.sunvalley@windermere.com and we will handle the rest. We look forward to working with you.

Dan Gorham

Managing Broker

Windermere Real Estate

208/622-2700 Ketchum

208/788-1700 Hailey

208/720-4077 Cell

To view all Blaine County listings, click here: http://www.dangorham.mywindermere.com

Autumn greetings from the Wood River Valley! The  snowmaking guns are busy on both Baldy and Dollar Mountain as Sun Valley prepares to open its 76^th ski season later this month. Opening day is scheduled for Thanksgiving Day, which is Thursday November 24.

In the local real estate market, the biggest story of 2011 has been the surge in sales in the affordably priced inventory. In the past 12 months there have been 206 sales of residential units with sales prices under $300,000, compared to 125 closings a year ago, an increase of nearly 65 percent. The attached graphs also show that condo sales have remained strong throughout the year, climbing 52 percent from a year ago when 104 units closed escrow compared to 158 in the past 12 months. In the single family market, the number of sales is up 7.3 percent while the average sale price per square foot declined 15.7 percent. Our data shows the average sold price was down 14 percent, driven largely by the uptick in home sales priced under $300,000.

My second graph looks specifically at the distressed market in Blaine County. We’ve broken out activity for both short sales and bank-owned properties. (A short sale is when proceeds from selling the property will fall short of the mortgages owed and the lien holders has agreed to accept less than the amount owed on the debt. An REO is bank-owned property that has been through the foreclosure process and is being re-listed for sale)

In our review, the accompanying graph shows the following:

A)Most of the single-family sales in the resort market remain traditional equity sales;
B)Distressed single-family listings in the resort market appear to be in the decline;
C)Almost a third of the available homes for sale in Hailey are distressed;
D)Over half the homes recently sold in Hailey and Bellevue were distressed;
E)Banks are not in the business of owning and managing homes and want these properties sold;

 This report is designed to give you a broad overview of the Blaine County market. We’d be happy to discuss with you in more detail the value of properties in specific neighborhoods or to learn more about your long-term real estate needs.We always appreciate referrals and look forward to working with you in the future. Please don’t hesitate to call with any questions you may have.

Preserving access to Sun Valley, especially by way of a local airport, has become a hot political issue facing the Wood River Valley as it struggles through the recession. Access is already considered difficult by some visitors, but perhaps it’s worth noting that the very isolation that merchants and politicians fear most could be an attraction for many skiers.Sun Valley rose four spots this year to fifth place in the annual Ski magazine reader survey, which ranks the top ski resorts in North America. Deer Valley, Utah, was once again rated No. 1.

The survey, now in its 24th year, provides an opportunity to see Sun Valley as the rest of the world does.

The competition is based on 18 categories of evaluation covering on- and off-mountain amenities, including terrain, scenery, nightlife and guest services.

Sun Valley ranked in the top 10 in 12 of the categories, taking first in the lifts category, and second place in the grooming, service, on-mountain food and character categories.

Area restaurants ranked third in the dining category.

The resort did not place in the top 10 categories for weather, value or access, but those skiers who managed to find their way to Sun Valley liked what they found, on and off the hill.

Only Whistler-Blackcomb in British Columbia and Heavenly in California ranked higher with regard to off-mountain activities.

Telluride, Colo., a well-known party town, ranked lower than Sun Valley in the nightlife, character and overall satisfaction categories.

So why did Sun Valley move up in the ranks? It has as much to do with what Sun Valley doesn’t have as what it does. Ketchum is described in the survey as the “original funky ski town.”

“Readers bemoan the isolation, but that is how Sun Valley keeps its character,” the magazine reported.

The magazine gave a nod to Sun Valley’s illustrious history, but activities favored by locals gained the most attention. They include shopping at the Gold Mine (“the ski world’s best thrift shop”), taking the kids sledding on Penny Hill and soaking at Frenchman’s hot springs west of Ketchum. Perhaps the legendary “Moss Man” of Frenchman’s hot spring will see a revival this winter.

Sun Valley also got points for new terrain parks for kids and a first-class lunch at Seattle Ridge.

“This is utopia,” said one surveyed reader. “I measure every other resort against this one.”

TOP TEN LIST
1. Deer Valley, Utah
2. Vail, Colo.
3. Whistler-Blackcomb, BC
4. Snowmass, Colo.
5. Sun Valley, Idaho
6. Park City, Utah
7. Beaver Creek, Colo.
8. Steamboat, Colo.
9. Breckenridge, Colo.
10. Telluride, Colo.

According to Sun Valley Property News, Jack Bariteau recently put the remaining 30 lots of the Village Green development at The Valley Club under contract.

With an expected closing on the Village Green properties this fall, Bariteau plans to build 2,400 -to 2,600 -square-foot all-season bungalows with year-round service and maintenance. Because Valley Club membership opportunities are at buy-in rates and monthly dues sit near historic lows, Bariteau sees this as an opportunity to invest at The Valley Club, reinvigorate interest in the outstanding properties there and provide savvy buyers with smaller, low-maintenance living at a great price. Bariteau notes that “we have a very old housing stock in the Sun Valley resort area with the majority of homes having been built well over 40 years ago. New ‘green’ designed and environmentally sustainable homes that are smaller and more efficient in plan is what the market is seeking and we intend to fill this need.”