Waterfront homes gain popularity, value

The waterfront market in the Inland Northwest is changing dramatically as more people from outside the region discover its value compared with other vacation-home destinations.

In 2003, Spokane, Kootenai and Bonner counties saw seven sales of waterfront properties valued at more than $1 million. In 2004, that number jumped to 30, of which 17were in Kootenai County.

“That’s going to get bigger,” said Realtor Bill Fanning, of Tomlinson Black’s Waterfront Division during the 2005 Real Estate Market Forum on Thursday. The annual event summarizes activity in many segments of the market and looks ahead to the coming year.

Fanning said the waterfront market is changing as demand rises for upscale properties. More people are coming here from outside the area wanting big lots and are willing to pay full retail value for them. Marshall Chesrown, developer of the exclusive Club at Black Rock on Lake Coeur d’Alene, has several high-end projects under way on Lake Coeur d’Alene and the Spokane River in Coeur d’Alene and Post Falls. Chesrown’s national marketing campaigns, which compete with other vacation-home destinations, also are new in this market, Fanning said.

And though the region’s most popular lakes have long been Priest, Pend Oreille and Coeur d’Alene, properties are being snatched up on other lakes, such as Newman Lake, on Spokane County’s eastern border. Fanning predicted that all waterfront property within an hour of Spokane will become a hot commodity within the next few years.

“On Newman Lake, there’s not one place for sale,” Fanning said. “If you want to buy something right now, you have to get on line.”

The secondary-lot market, which has been weak for 25 years, is seeing strong activity and should be solid from now on, Fanning said. Those lots aren’t situated on the water but frequently have some kind of waterfront access. In 2003, 43 homes on secondary waterfront lots in Spokane County sold at an average price of $117,000. In 2004, 67 homes sold at an average price of $126,000.

People are coming here and buying waterfront property because this region is easy to get to, people can work from anywhere with advances in telecommunications, and properties are still less expensive compared with other vacation-home destinations, Fanning said.

And, he added, the departure of the Aryan Nations from North Idaho “is a lot bigger driving force than we realize.”