How high can it go?

The real estate market has just gone insane! I just talked to a neighbor who put his house up for sale. His appraisal came in at about $40,000 more than ours (it's about 400-600 sq. ft. bigger) but he's selling it for $80,000 over appraised value! It will probably sell too. That's insane! That means we could probably sell ours for $360,000 instead of the $280,000 it was appraised at. What is going on? We do live in a "desirable neighborhood" and we have deeded lake access with a boat launch ramp, dock, beach, and nice picnic area, but still, houses going for several thousand over appraised value? That has never happened here. I know in Seattle there are bidding wars on houses. We know a girl from here who lives in Seattle. She has put in offers on several homes and lost every one. She said she's usually competing with over 25 other buyers, most of them couples (she's single), who are willing and able to pay $100,000 over appraised value. The sad thing is, our kids may never be able to own a home at this rate! Well, my two oldest do own homes, but what will it be like for Jonathan once he's at that stage of his life? It's kind of scary.

I wish I had had the money to just buy a lot or two before things went so crazy. What a great investment that would have been. Unfortunately, we've never been in a position financially to do that. We've been lucky to just be able to afford the house we live in, let alone "investment property". There's a guy in town we've known since we moved here in 1983. He used to work for the local radio (FM) station selling radio advertising. He used to beg me to come to work for him. I sold radio advertising back in Colorado Springs. I couldn't imagine trying to make a living selling radio advertising in a town of 5,000 people so I politely declined his persistent offers of employment. It was a smart move on my part as the radio station has always been notorious for problems paying their bills, including payroll. Anyway, Jeff decided to go into real estate after a few years in the radio biz. Very smart move on his part. His first year he had the highest sales figures of all the real estate agents in the county. He continued in that vein, eventually becoming a broker. He is now a multi-millionaire. And to think, I knew him when... It makes me consider becoming a realtor. I love my job, though. And there are about a million realtors in Bonner County. Obviously, some of them are NOT making much money. But some are.

I hear stories almost every day about some two-bit piece of property, or some cheesy little house, being sold for unbelievable amounts of money. Everyone in the area is aghast at what is going on and can't seem to stop talking about it. New developments are popping up all over the place. Lots that sold for just $30,000 last year are going for over $100,000 this year as people scramble for a place to build that doesn't reequire them to bring in power, water, and telephone. Acreage is still fairly reasonable. It seems what is selling are lots or homes in and around Sandpoint, or anything on the water. What seems slow to sell are homes and acreage over 5 miles from town. Where in the past the inclination was to buy someplace out in the boonies to escape humanity and surround yourself with lots of property, it appears now that people want proximity to town, a nice neighborhood with amenities, and paved, plowed roads. Privacy and acreage really don't seem to be a factor at all. Maybe it's because so many of the transplants are used to big city living where homes are built on top of each other. Compared to that, a lot that is .25 to .5 acres seems enormous and probably seems really private. Also, someone used to California or Arizona (seems to be from whence most of our new arrivals come) city life would probably not be too keen on dirt roads, mile long driveways that they have to plow, and dialup internet access. So, maybe that's what I should buy - acreage just about 8 or 10 miles from town. Some day it will be worth a fortune as "town" continues to expand and new developments are continually in demand. Maybe, once we get our bills paid off and start saving money, we can actually consider buying investment property. It would be a smart move. Heck, look at the woman who owns the lot behind us. She has refused to sell that, and 4 others she owns in Ponder Point, for years - or has wanted so much for them no one would pay the price. We tried to get her to sell to our kids a few years ago and she wanted $60,000 when it was maybe worth $30,000. She has hung on to them all, and now each one is worth in excess of $100,000, up to $150,000. That's crazy! Her ex-husband is mad because he sold all his lots a few years ago. She got hers - half of his - in their divorce settlement about 25 years ago, so it irks him that she is making so much from land he "gave" her (not like he's hurting - he's worth millions). So, where will it end? How high can it go?