Jim Figge, Sun Valley Associates real estate agent, said there's no hiding that 2009 was the "absolute low" for property sales in the Wood River Valley.
The market was tumbling down an abyss all of last year, with no end in sight. However, reassurance was delivered this year when agents felt the bottom of the pit.
Figge said agents think they've reached the bottom because the rate of home sales is no longer decreasing but actually increasing. From Jan. 1 to Feb. 11, 24 residential sales occurred in the valley, compared to 10 during the same time span of 2009. That's a 140 percent increase in homes sold, but the dollar amount of those sold homes is even more encouraging.
About $17.6 million was made from these sales, compared to $4.6 million in the same span of 2009. That means that even though the number of sales increased by 140 percent, dollar volume increased by 283 percent.
The Sawtooth Board of Realtors tabulates these numbers. All 300 or so real estate agents in the valley belong to the board. Figge, who was president of the board for three years, said that despite the good news of sales picking up, prices remain "retarded," the same as 2009. By "retarded," he said, he means that homes aren't reaching the prices they're worth—their full potential.
Dean and Julie Beaudet's three-bedroom house on nine acres west of Bellevue is one of many examples. Their property has been on the market for more than a month and has garnered much attention—though no offers—but the Beaudets are selling it at a bargain compared to its value a few years ago. And they know it.
The couple has listed the house for $750,000.
"I was offered $2 million several years ago," Dean Beaudet said. "But we weren't interested."
Now, they are what you'd call "motivated sellers" because they're running the Fillmore Inn in Twin Falls and want to permanently move closer to their business.
Figge said buyers hold all the cards right now because houses on the market are either bank-owned or are there because owners can't make ends meet. The Beaudets said they realized this and knew their price would have to be "competitive"—which it is.
"At a price, there's a buyer," Figge said, "and an immediate buyer."
Figge said prices wouldn't come up until all the distressed properties change hands. And that isn't yet the case, according to Daryl Fauth, owner of Blaine County Title. He said 2010's foreclosure pace has been one new defaulted home every business day. That's no different than 2009, which saw 277 defaults, or a little bit more than one default every business day.
Figge said one of the rare bright spots from 2009 was that Hailey homes under $350,000 saw more sales than 2008. But less money came out of homes sold.
For example, 283 residential sales were completed in the valley during 2008. Only one fewer residential sale occurred during 2009, but those brought in $49.6 million less, a decrease of 22 percent. Total sales for 2009 equated to $177.3 million, while 2008 sales equated to $226.9 million.
Figge said he predicts 2010 to have more sales and more money made than 2009.
"But prices aren't going to come up," he said.
Not until foreclosures slow down.
And Fauth said 2010 looks like it will continue the trend of foreclosure after foreclosure.
"But, who knows?" Fauth said.
Trevon Milliard: tmilliard@mtexpress.com
Real estate agent Jim Figge, right, discusses encouraging buyer interest in the Bellevue-area home of Dean and Julie Beaudet, left.
Photo by Willy Cook
