Housing market off to solid start

COEUR d'ALENE — The Kootenai County housing market is off to a solid start in 2024, with the median home price at $499,500 and the number of single-family homes sold at 252, according to the Coeur d'Alene Regional Realtors.

The number of residential listings as of March 6 was 656, up from 601 the same month a year ago, while the average days on the market was 112.

"Across the industry, everyone seems to be busier," said Jared McFarland with Century 21 Beutler and Associates. "There is increased activity across the board."

McFarland said many agents expect a busy spring. 

Predictions for interest rates are that they will stay stable and continue to be in the 6% to 7% range over the next year, he said.

"If the rates can stay stable, even at 6% or 7%, buyers' confidence will go up and sales will continue to increase," McFarland said. "We expect to see more listings come on the market this spring and we are seeing homes that are priced correctly sell faster than they were in the last year."

He said investors are coming back to the market and buying property and homes again, showing increased confidence.  

"Local real estate agents are also feeling confident about the market moving into spring and summer," McFarland.

The median price of a single-family home in Shoshone County was $240,000 in February, with 21 homes sold through the first two months of the year. There were 53 residential listings as of March 6, while the average days on the market was 119.

Lindsay Allen with Locate Real Estate said that Friday she received a notification from Market Rate Watch that the interest rate was at its lowest point in the last month, with rates in the high 6% range. 

She said the local Multiple Listing Service data on inventory and sales also reflects a similar stabilization in the local housing market. 

The 2024 North Idaho real estate market is starting off very much like 2018-2020 started, Allen said.

"Dare I say again we are settling back into a normal, healthy market," Allen said.

Statistics such as new listings by month, days on the market and month's supply of inventory are nearly identical to the first quarter of 2018, 2019 and 2020.

Allen said that interestingly, the number of pending home sales and the number of closed home sales year-to-date is lower than in 2018-2020, and more in line with 2013 and 2014, which were quieter years in the local market history.

"Sellers are currently accepting 96.2% of the list price, which is on par with what we saw in 2013-2015," she said. "This means buyers are getting some good deals right now, and sellers are accepting these requests for concessions. Nearly every offer I am writing right now, whether it is a cash offer or a financed offer, we are seeing concessions on the price, or the sellers agreeing to pay closing costs to the buyers."

She said that two years ago, sellers were accepting offers of 99.6% of their list price and were not giving much in terms of other concessions.

The markets of 2013-2020 were robust markets, with not a lot of fireworks.

"I feel like 2024 is shaping up to go in that same direction. It’s like we are picking up where we left off if you take the pandemic years out of the equation," Allen said. "The floor on home prices has drastically increased over the last three years, reflected in that median sales price hovering around $500,000, but in terms of the level of activity and turnover of inventory in our market, I think we are very much returning to historical norms."

Mortgage and real estate industry folks continue to expect rates for 2024 are going to average in the 6% range. 

"We should hopefully see less volatility, which will be comforting to consumers who have been waiting on the sidelines for the seas to calm down," Allen said. "Now that we are stabilizing on all these fronts, and hopefully avoiding a major recession, confidence will increase, and buyers and sellers will start re-entering the market."

She expects to see more inventory hitting the market through this spring.

"Expect to see more buyers entering the market this spring," Allen said. "Expect prices to stay buoyant, and expect that median price to float back up to the low $500,000s."

    McFarland