Land costs surge in logging town turned resort
Sunday, March 21, 2004 12:34 AM PST
By Associated Press
Printable version
E-mail this articleSANDPOINT, Idaho -- As you drive across the mile-long bridge that spans Lake Pend Oreille, the charming center of Sandpoint appears.
For many, it's been love at first sight.
As a result, real estate prices are booming in the former logging community. While prices are low compared to Aspen or Sun Valley, the cost of housing at Schweitzer Mountain ski area or along the lake has skyrocketed in the past couple of years.
"The quality of life here is exceptional," said Rich Faletto, who operates one of what appear to be dozens of real estate offices here.
Sunset Magazine recently named Sandpoint the best small town in the West, and it is something of a surprise that the town of 7,000 was not "discovered" sooner.
Sandpoint is packed with restaurants, art galleries, fine shopping and a lively arts scene. It sits on the shores of one of the West's largest and deepest freshwater lakes. The ski resort is 11 miles above town, making for a rare combination of winter and summer recreation in one place.
There is no comprehensive source of real estate price information in Idaho, so the exact increase in housing costs is difficult to measure. But those who live in the area have seen a jump of 10 percent to 20 percent over the past couple of years.
A casual glance through real estate magazines shows lakeside homes topping $1 million, and new condos at Schweitzer generally starting at $240,000.
Those are unusual numbers in the Idaho Panhandle, where natural resource industries like mining and logging have been suffering for years, and unemployment rates are the highest in the state at more than 6 percent.
But Sandpoint, like many mountain resort communities, is somewhat isolated from the predominant regional economies and operates with its own set of demographics.
Many of the recent gains occurred after a Seattle company, Harbor Resorts, bought the financially struggling Schweitzer Mountain in 1999 and decided to push it as a destination resort for Puget Sound-area tourists.
Harbor built the 50-unit White Pine Lodge condos, and launched a media blitz.
"We have a real gem with Schweitzer Mountain Resort," said Ron Nova, vice president of resort operations at Harbor.
Faletto said White Pine Lodge quickly sold every unit except the penthouse in its first few months, and hundreds of people inquired about property.
"Sixty percent of those people told us they had never heard of Sandpoint or Schweitzer until that time," Faletto said. "These people fell in love with Sandpoint and Schweitzer."
There are 627 homes on the mountain, with many more planned.
Another company, Lakeshore Mountain Properties, is selling private land next to the ski area for $175,000 to $335,000 per lot, for homes that must cost at least $500,000.
One drawback for the community is the lack of scheduled airline service. The closest commercial airport is in Spokane, some 90 miles away. Driving from Seattle to Sandpoint takes about six hours.
Local business leaders recently banded together to start air service, with McCall Aviation providing flights to Sandpoint from Boise and Seattle. Businessmen pledged to buy a certain number of tickets to convince the tiny airplane to begin service using a nine-passenger plane.
Sandpoint is also serviced by Amtrak's Empire Builder.
Jeanne Jackson of the Sandpoint Association of Realtors said there are only 44 homes or condos currently on the market in the area.
The average condo listing is for $286,000 and the average home is $486,000, she said.
Lakefront property, the most expensive in the region, is expected to reach $5,000 per foot of shoreline this year.
"It's spendy," she said.
But if you factor out the recreation property, prices drop plenty, she said. The average house in town lists for $174,000, and condos can be had for $65,000.
That means Sandpoint so far has largely avoided the runaway housing costs that have priced low-wage workers completely out of the market in places like Vail.
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