Sales still strong, price declines slow
It's hard to believe the year is 70 percent passed already. Judging from our trends so far, the local real estate market may be headed for greater stability. On the heels of steady declines, first the 16 percent in 2008 followed by the 14 percent in 2009, declines in most of the area served by the Coeur d'Alene Multiple Listing Service have slowed.
As reported here in past months we started the year off 9 percent below the 2009 average price. That decline slowed to 7 percent by the end of July and now, the Kootenai County average is off just 5 percent from last year. Overall the MLS average price is down 6 percent. Our median price, remember that is half below and half above, is down just 3 percent over last year. We hope these smaller declines indicate that the adjustments are nearly over.
As you will recall these price declines are driven by economic basics of supply and demand. As foreclosures accelerated the supply of homes became excessive. With the lien holders focused on generating cash, many foreclosures sell at below prevailing market prices. This then becomes the comparable pricing for non-distressed inventory, dragging prices down overall. These lower prices appear to be attracting buyers.
No-one will argue that the tax credits early this year provided a shot in the arm for the real estate trade here as well
as across the nation. However, except for rare cases, those tax credit purchases had closed by the end of June. As a result we saw a slowing of activity in July when we dropped from a 44 percent gain in sales over 2009 to 22 percent.
August statistics have been compiled and we are still ahead of last year in the number of closed residential sales by more than 20 percent. This indicates that buyers and sellers are more often in agreement about the right selling price for a home and that interest in home ownership is still high without the credits. Today's lower rates will save a buyer more than the credit over the term of a typical mortgage.
A closer review of the activity shows that Coeur d'Alene/Dalton sales are up 17 percent with an average price that is just 2 percent below last year. Post Falls prices noticed an identical percentage price change although their total sales were up just 2 percent from the same period in 2009. Hayden prices and those in Bonner and Boundary counties suffered the largest decrease in price at 15 and 16 percent respectively, although the number of sales was up 29 percent in Hayden and 33 percent in Bonner/Boundary. The higher number of sales is likely related to the decline in prices. Townhouse/Condo sales are 59 percent ahead of last year although their average prices are down 10 percent or about $20,000 from the same time in 2009.
One of the most surprising numbers is that of residences with acreage. The total Year To Date (YTD) sales in that category exceed last year by 57 percent and the average price is actually up 1 percent.
Super low interest rates and lower prices with a good supply of inventory are likely the driving forces behind the increase in activity. Our total number of listings is almost 8 percent fewer than at this time in 2009 with residential listings up slightly at just over 1 percent.
To get the most up to date market information, always contact a Realtor member of the Coeur d'Alene Association of Realtors.
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.