Area sales slow, but news is good
July figures are out and as expected, we could not sustain the previous month's increase in Year to Date (YTD) sales. You will remember that June's figures reflected a 44 percent increase over the same period of 2009.
July's performance was down but we still can report that the number of single family homes for the year are up from last year by nearly 22 percent. We continue then, to outpace the nation for housing sales. After six months of consistent increase in monthly sales we are not sure what to make of this decline. Some news below may make a difference.
As interest rates continue to fall we anticipate more stability in the coming weeks and hopefully increased activity like we saw in the first half of the year. The harsh reality is though, that our production totals for July 2010 fell below those of 2009. A step backward is not welcome at this juncture but we will continue to press onward.
Although the decline may be an indication of the residual effect of the housing stimulus expiration at the end of April, one month of statistics makes it hard to draw that conclusion.
Prices continued to fall in July but the decline seems to be slowing. Overall the Multiple Listing Service (MLS) reports that the average home price fell in Kootenai County by 7 percent. This reflects a 2 percent change from the 9 percent YTD average decrease reported at the end of June. Interesting too, is that the total MLS average price remained flat, a 0 percent change from last month in YTD sales.
As mentioned previously, one month's data is hard to interpret alone. Even with the drop in July activity agents are reporting that they are busy with buyers and so far this month we have recorded 58 sales.
At least some of these sales are attributed to investors dissatisfied with the lackluster performance of their usual portfolios. Some report average returns of 1-2 percent on their brokerage accounts and are looking to real estate for better returns.
Many multi-family properties can return 8 percent or better on your investment and come with a bevy of deductible benefits including a depreciation schedule that allows you to write off a portion of the building each year. Management fees and depreciation of appliances and appurtenances also provide tax benefits for the savvy investor.
Add to the tax benefits the ultimate appreciation of your properties and real estate becomes a very attractive vehicle for homebuyers and investors alike.
The administration has approved funding for the United States Department of Agriculture to fund loan programs and the money is expected by the USDA next week. Regular readers will recall that the USDA is responsible for some $68 million in loans within the county last year. These funds will ensure that these programs will continue.
One of the popular programs for low income buyers is the Rural Development loan. This program allows for a subsidized payment to make housing affordable in rural areas. Banks have been short of funding for these programs and this latest legislation will replenish those coffers which should help the rural portions of our market to recover.
For a safe trip home call a Realtor. To find a Realtor to represent you visit the visit the Coeur d'Alene Association of Realtors website; www.cdarealtors.com. There you can also search available properties in the Multiple Listing Service.
Kim Cooper is a Realtor broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your commentary and feedback. You may contact them by calling 667-0664 or by writing to them at 409 W. Neider, Coeur d'Alene.