Home sales drop, average price up

Home sales in Kootenai County during July dropped compared to the same month last year, according to the latest report from Coeur d'Alene Multiple Listing Service.

There were 231 sales last month vs. 314 in July 2009.

"The month of July showed the first appreciable slowdown of sales compared to 2009," said Pete Faust of Century 21 Beutler and Associates in Coeur d'Alene.

Of the 231 closings, 155 (67 percent) were in the under $200,000 price range. The percentage was the same in July 2009.

The average sales price and days on the market - $172,021 and 110 respectively - of a single-family listing were both up in July compared to July 2009 ($169,777, 91 days).

The only price brackets to see an increase in sales were below $99,999 and $300,000 to $499,000.

"Most likely due to the tax rebate pipeline draining and the monthly closings meshing with the steady but diminished flow of newly pending sales," Faust said.

For year-to-date numbers, home sales in Kootenai County are still up 20 percent through July 31 compared to last year, climbing from 857 to 1,025.

Among cities, Hayden has seen the biggest increase (39 percent) in sales this year from 115 to 160. Coeur d'Alene/Dalton Gardens sales are up 31 percent and Post Falls 7 percent, while Rathdrum/Twin Lakes are down 6 percent.

New construction housing accounted for 18 percent of sales through July 31 compared to 25 percent in 2009.

The average price in the county, however, has dropped 7 percent from $196,038 to $181,508.

The average prices for the year for listed Rathdrum/Twin Lakes homes dropped 18 percent compared to last year to $153,360; 15 percent in Hayden to $205,234; 4 percent in Coeur d'Alene/ Dalton Gardens to $180,255; and 2 percent in Post Falls to $174,319.

Ray Murphy of North Idaho Real Estate said that while the distressed market is still worse here than in Spokane County, it has increased over the border, causing prices to continue to slip in both areas. That, along with continued low mortgage rates, make for a buyer's market.

"When employment increases enough to stop the distressed property dilemma, interest rates will rise enough to more than offset any further decreases in housing prices making your monthly mortgage payments higher than what you could get today," he said.

Faust said some Realtors report greater resistance from banks in trying to process short sales, while bank-owned homes continue to draw off sales from both existing homes and new construction.