2009 Kootenai County Market Forum Development Land Slides

Development Land Doug Rall, CPA

Topics • • • • •

Review R i off residential id i l and d commercial i lb building ildi permits i issued for 2008 verses 2007 Review of residential platted lots added from 2000 thru 2008 Review of out of state drivers’ license surrender report p from 2002 thru 2008 Review of closed commercial land escrows reported b th by the MLS ffor 2008 verses 2007 2007. Forecast for 2009-2010.

Kootenai County Building Permits Number of Permits 2007

2008

2007/2008 Change

Residential

1,848

1,294

-28.25%

Commercial

336

273

-18.75% 18 75%

Total

2,184

1,567

-29.98%

2007

2008

2007/2008 Change

Residential

$305,338,467

$182,706,174

-40.16%

Commercial

$212 724 424 $212,724,424

$118 070 569 $118,070,569

-44 5% -44.5%

Total

$518,062,891

$300,776,174

-41.94%

Permit Volume

S Source: Construction C t ti M Monitor it

Total Residential Lots Platted 3000 2617 2462

2500 2000

1938 1510

1500 1179

1000 500 0

989

1593 1362 1152

Total Residential Lots Platted l d l l d

Drivers License Surrenders 2000 1800 1600

Arizona California Colorado M t Montana Nevada O Oregon Washington

1400 1200 1000 800 600 400 200 0 2002

2003

2004

2005

2006

2007

2008

License Surrenders/Lots Platted 6000 5219

5309

4779

5000

4708 4429

4289

4073

4000 3000

2617

0

Drivers License Surrenders

1938

2000 1000

Total Lots Platted

2462

1510 989

1179

1593 1362

1152

Commercial Land Sale # Land Sales

Range

Gross Sales

2007

24

0.13 – 56.8 Acres $13,868,701

2008

16

0 26 – 4.4 0.26 4 4 Acres

$3 841 650 $3,841,650

Source: Coeur d’Alene MLS

Forecast • • • •

Building permits are expected to remain at or slightly below 2008 levels. O t off state Out t t migration i ti to t Idaho Id h is i expected t d to t remain i level or show a slight decrease Commercial land sales will continue to be slow Prices of land will continue to decline

“When building values decline, the value of raw land declines and when building values increase, so does the value al e of raw ra land land.””