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So far, though down a bit, we are in a normal mark - 12/22/2008
While homes in Sandpoint aren't cheap, but compared to other resort areas, still much more affordable than places like Sun Valley or Tahoe. As I write this there are 1175 homes, condos, and townhomes in the Sandpoint, North Idaho area, with a median price of $329,000. However, there are many, many affordable homes on the market. Yesterday I wrote an offer for a 1800 sqare foot newer home for under $100,000, and there are over 400 homes available under $250,000. So, how is the real estate market and business here in Sandpoint and North Idaho? Besides being named to Sunset Magazine's Top 10 Resort Towns this year, Idaho was just named the nation's 8th healthiest state. In Sandpoint, several new businesses just opened, including a Jack in the Box, Big 5 Sporting Goods, and Zip's. By a quick count, over twenty other new businesses have opened in the last forty days. The new Mountain West Bank building now graces Highway 2, and the Panhandle State Bank is a monument downtown. Quest Aircraft just hired 60 new employees, and the dredging will be finished by Friday for the start of the Sand Creek Byway. This three-year project to circumvent Sandpoint will provide dozens of high-paying jobs for the next three years. When the CEO of Quest was on my non-paid business public radio show, he also pledged to hire up to 200 more over the next several months to meet the demand for his first-rate aircraft. A lot of noise has been made over the unemployment rate going up a couple of points since summer quarter. Looking back on historic figures since 1990, there has not been one year in which the rate did not increase during winter months. The facts are, in that eighteen year period, Bonner County had 47 months of unemployment over ten percent; the highest rate was 15.1% (Thank God for our current low rate); 40 times the rate swung more than two percent; several times the monthly or quarterly change was 4%, 5%, or even up to 8.4%. Why such volatile swings? In a county with under 50,000 full-time residents, seasonal changes because of weather and tourism make great changes the norm. Alarmists sound the bell, but don't actually look at what our area is all about. Compared to the national rates, we are still ahead, and our future does not look bad. Click here to view the Unemployment Rates 1990-2008: http://www.sandpointid.net/Bonner-Historic_Unemployment_Rates.html Since 1997, the biggest gain we have had in employment is in manufacturing. With companies such as Quest Aircraft, Airtow, Encoder Products, Litehouse Foods, Coldwater Creek, and Thorne Research, we have better than average big company representation. In ten years over 1,000 new manufacturing jobs have been created in Bonner County. Many think tourism is king. While important, it is only a fraction of our base. One of our shining tourist draws is Schweitzer Mountain Resort. The ski resort is not fully up and running, but once ski season begins, this will help our economy greatly. Tom Chasse is coming on my community service show, North Idaho Arts and Adventure, on Tuesday, December 17, 2008 to talk about the upcoming season, as well as the very slick and new Schweitzer Magazine. Schweitzer was named last year to Skiing Magazine's Top 25 Ski Resorts, and is coming off two record years. According to Jeff Bond, owner of Tomlinson Sandpoint Sotheby's International Realty, the company had its best September ever this year. Certainly we have seen a decline in prices. Some estimates for our area are declines of 4%, 6%, and 6% for the last three years. However, we saw increases of 30%, 40%, and 40% the previous three. All in all, we are not doing so bad in real estate. Most values are maintaining, and sales, while not robust, are certainly better than other parts of the country. Across the country the banking issue has been disconcerting to say the least. Home loans are tougher to get. Borrowers need to have sparkling credit, and according to news reports, 20% downpayments are also becoming the norm. For those looking for loans in North Idaho though, the best resources appear not to be national companies, but local sources. Mountain West Bank did not take on the kind of bad loans that bigger banks took on, and they have been making loans in routine fashion, much like before this economic storm. Recently, a story was sent out by broker Judy Delucchi about a loan that was falling apart right before closing. Jason Hauck of MetLife (that's right, they make home loans, too!) put together a loan at a decent rate in just one week. The changes with USDA loans are generous. Joseph Cool of USDA in Post Falls says that a family of three can buy a home anywhere in Bonner County, and they can make in excess of $70,000, and even get assistance. There is money out there for loans in the Inland Northwest. Just look down the street rather than around the globe. Another alarming trend people have noted in Sandpoint is the closing of several area restaurants. Restaurants are among the most visible and talked about of businesses. Therefore, many people see this segment of the business environment as a guage to the economy. Sandpoint has had some trouble keeping fine dining restaurants open. After the Power House Bar & Grill closed, Montana Pizza opened one of their Craggy Range franchises at the Power House. It lasted one season. After Alex Verhoogen, a Spokane MD, lost Swan's Landing, Glen Harvey picked up the property, developing it into the Lodge at Sandpoint. He leased the restaurant to his nephew, and the venerable establishment's reputation suffered for almost two years. From personal knowledge, with rents so high, it didn't seem it could succeed no matter who ran the kitchen. Then Len Golding took over, and for a time, the place ran smoothly, but in October 2008, he also shut the doors. Now, Claudia Dick, owner of the Crossings at Willow Bay and Cafe Trinity, will start another restaurant venture there this December. The old Passtime, a staple of downtown Sandpoint, was renovated at great cost to the Chicago transplants that hoped that Sandpoint was ready for a nightclub and cool eatery, but also closed after a couple of years. Three Glasses opened with Chef Luigi from Alba, Italy and fantastic reviews. John and Darcy Peters hoped that the incredible wine list, live piano music, and very, very good food would attract enough business to warrant gutting the building at considerable cost. Result? Closed doors. Upstairs, the Loading Dock has found limited success as a deli and pizzaria. They have since made the restaurant into a kind of concert hall with some success. Out in Hope, Barney Ballard hoped the Dock of the Bay, with its fine menu and wine selection, would make it, but when rents were raised, he gave it up and moved to the new Panhandle Bank building in Sandpoint. Now Gloria Waterhouse is looking to sell the Sand Creek Grill. Fine dining just doesn't seem to be able to survive here, and many miss restaurants like the Garden. Truth is, while we seem to have enough people to support these dining rooms, we actually don't. Plus, though we appear to be a prosperous community with so many wealthy people finding homes here, many are not full-time residents. Our wages are still low compared to the rest of the nation. Still, we do have some pretty good places to catch a bite. Yesterday I interviewed Tom Guscott of Arlo's Ristorante, and by all accounts, they are doing well, employing twelve employees even in winter months. After a fire there last year, the worry was they wouldn't reopen. Gary and Laura Peitz owned the venerable Coit House B&B, and after selling a couple of years ago, looked for the right place to open at the right time. Next month they will open a comfort food diner with chef Gabe Cruz nex to the new Subway, next to the new Mountain West Bank complex. Apparently, in this economy, pricier fine dining isn't working as well as more affordable sandwiches and comfort food. I have worked with great chefs, the most notable[read more...] |