Know Your Neighborhood! Update on Garden Valley’s Castle Mountain Creeks Market
November 21st, 2007 categories: Garden Valley Living, Garden Valley Real Estate
Garden Valley, Castle Mountain Creeks, Real Estate
Economic news, though mixed, seems favorable in Idaho. Last week the Idaho Statesman reported that the Boise Metro Chamber of Commerce held an Economic Outlook Forum. Speakers there agreed that the Treasure Valley economic conditions are stronger and more resilient than many local economies around that nation.
Although Garden Valley sales are down. Local figures are relatively good compared to other nationwide markets. This is due in part to the fact the approximately 50% of our properties are second homes. The typical buyer in our market is not a candidate for sub-prime loans, or high risk, loans. Interest rates are still very favorable and money is easily available to the typical Garden Valley buyer.I estimate that the Garden Valley Idaho market will not suffer as much ans will recover more quickly than others. You may often hear the phrase “a return to a normal market”. What this means is that Sellers should not expect conditions to match those of the 2005 boom any time in the near future.
Castle Mountain residential properties - Reference figure 1.
The average price of Castle Mountain homes remains high compared to 2007 YTD sales. Compared to 2007, the averge days on the market is up 30% to almost 200 days. There are approximately 15 homes available in the Garden Valley market that are competition for Castle Mountain listings. In other words, the few Buyers that are looking in the Castle Mountain price range have plenty of choice.
Buyers and Sellers are at a standstill. Sellers are holding firm on their prices (although the date indicates that prices are high). Buyers are holding out for price adjustments. I recommend that sellers in Castle Mountain talk to their agents about their specific circumstances. Put the priorities and possible options on the table and devise a strategy specific to their property. Above all, keep those driveways plowed and sidewalks shoveled in the coming winter months.
Figure 1.
Note: One listing was excluded to avoid skew
Castle Mountain land - Reference figure 2.
Castle Mountain lots remain one of the best values in the Garden Valley area for land under $90,000. However, inventory is up considerably compared to YTD sales and even 2006 sales. This equates to a 3 year inventory level. Average prices remain high especially when you take into account the amount of available inventory. We have a steady stream of buyers looking at Castle Mountain land, but relatively no buyers.
The Buyer that is not limited to the Castle Mountain price range has over 100 Garden Valley lots to choose from. Serious sellers should plan a strong spring strategy that includes preparing their properties to look more appealing. Consider removing brush and dead and dying trees. Acquire a septic permit for a minimum three bedroom home. Some properties will be more marketable with a driveway cut in to the most likely building site. These improvements will make your land more marketable but will not bring you more dollars. Keep that in mind when spending. Each property in our neighborhood is unique. I will be happy to answer any questions particular to your property or assist with the septic permit process.
Figure 2.
In summary, serious sellers would be wise to take a hard look at the inventory levels. This market is a textbook lesson in supply and demand economics. Buyers are trickling in but not at the levels we need to move the current inventory. This is particularly true in the case of land. Boise County Planning Zoning has, up to now, been pro-development. There are numerous development plans before the committee now. Approvals will add to the inventory glut. It’s time to take a hard look at your personal goals. Otherwise, the wait for land sellers could be long.
Note: Land inventory levels do not include Southfork Landing
