Lower prices driving sales
Year to date statistics have been compiled through June and reinforce that market activity is the best in years. That is of course, unless you are a seller.
Buyers are snatching up bargain prices creating a run up of activity not seen since the early boom of 2003-2004. Our recent compilation of figures provided by the Coeur d'Alene Multiple Listing Service (MLS) shows we have exceeded the 2009 production in number of units by 44 percent.
You can see that our year to date sales are nearly equal to the total number YTD in 2002, the first of the past 10 years that signaled a rise in home consumption. Bargain priced foreclosures and the resulting lowering of prices by sellers to compete with them means it is a bargain hunter's bonanza. Add to this the lowest mortgage rates in 50 years and you have a formula that makes inventory move.
The bad news for sellers is that our prices continue to slip. Although not by double digits as in previous years, we are still falling. In Kootenai County our average price fell by 8 percent as follows:
• Cd'A/Dalton - 4%
• Post Falls - 2%
• Hayden - 19%
n• Rathdrum/Twin Lakes - 20%
As the bargain priced inventory is consumed, prices will ultimately stabilize and then begin to rise following the basic
economic rule of supply and demand. Meanwhile we continue to see the greatest consumption in the lower priced homes. New construction has increased slightly but is still down from last year. At this time in 2009 25 percent of our single family homes were new, this year only 18 percent sold were newly constructed homes.
Sixty-eight percent of all residential sales reported were for less than $200,000 compared to last year when those homes accounted for 64 percent of our total. Our average sales price in June of last year, for a three bedroom, two bathroom home was $173,381 while this year it is $162,530. These lower priced homes are moving faster than last year too. The average days on the market was 122 last year with those homes moving in an average of 99 days this year.
There are bargains to be found in literally all types of property and in every price range. If interest rates continue to hold below 5 percent it would seem that the trends seen so far this year are destined to continue. Lower prices and lower interest rates mean a lower monthly payment that, in many cases, make owning cheaper than renting.
We continue to monitor the market and although only report here monthly, your Realtor can give you up to date figures any day.
For a safe trip home, call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.
Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664 with your questions or commentary.