real estate
DESPERATELY SEEKING MORE
I
f you’re in the market to buy a house in Sandpoint, or have been paying attention to the local real estate market, you know what’s going on—there’s a shortage of homes to buy, unless you happen to have several million dollars sitting around, which opens up a few more options. The problem lies in the fact that there are too few builders in the Sandpoint area, and there are not enough new houses being built. Those issues are helping to drive the average sales price for a home in the Sandpoint area just past the $400,000 mark during the period of April 20, 2019 to September 30, 2019. “It’s hard to find a builder,” said Teague Mullen, MLS president for the Selkirk Association of Realtors, and partner and realtor with Realm Partners. He said a lack of inventory and increased building costs are putting a squeeze on the local real estate market. “Everybody has a buyer, but we can’t find them what they want to buy.” Residential sales at Schweitzer are also red hot, with the average residential sales price increasing 21 percent this past year. “It’s crazy right now,” Mullen said. “Normally in the Schweitzer market, we’ll see between 60 and 70 residential listings. Right now there are six” (as of Oct. 10, 2019). “There’s no inventory, and there’s a high demand for condos at Schweitzer. There’s an opportunity for builders at Schweitzer.” Mullen mentioned there will be some new Sandpoint housing
developments coming in 2020 that will start in the $300,000 to $500,000 range. Apparently, that will be the new cost of housing. “It’s going to be tough to find something under $300,000,” he said. As far as affordability, online research indicates the numbers don’t add up for local residents looking to buy a home in Sandpoint. To purchase the average-priced home at $400,000 with 20 percent down ($80,000 cash), the total payment with taxes and insurance averages around $1,860 per month. Now consider what residents are earning. According to DataUSA, Bonner County had a median household income of $45,607 in 2017. Pop onto an online mortgage affordability calculator, and enter a $45,000 income with a $20,000 down payment and $250 per month in total debt payments (car payments, credit cards, etc.), and it recommends a home price of $182,000. At press time, there were a handful of mobile homes on property for sale near that mark. Property in Priest River and Bonners Ferry is less expensive, yet the average sales price of a home is between $270,000 and $290,000. That’s a big decrease from Sandpoint’s average sales price, but could still be a financial stretch for many households. As with many other communities, the struggle for affordable housing is a new reality for Sandpoint and the people who call this place home.
-Beth Hawkins
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10/31/19 9:41 AM