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