Good news this week

We are not sure the area's unemployed would agree, but apparently the recession is over. Yep, according to the National Bureau of Economic Research, the recession officially ended in June of 2009.

Then, the housing crisis apparently ended by hitting bottom last month. Although, as we have reported here on several occasions, one month's data is hardly sufficient to plot a trend.

Last week's report from the National Association of Realtors (NAR) says home sales climbed 7.6 percent last month after a less than stellar July. We saw sales here decline in July as well and August showed a slowing of the declines in prices we have been tracking since late in 2007. Our average price, as reported by the Multiple Listing Service (MLS), at the end of August was $178,801, just slightly higher than the median price reported Thursday by the NAR of $178,600. According to the report this shows an increase of less than one percent or 0.8 percent over July nationally. Remember, the median is the price that half the homes sold for more and half for less than, where average means all sales divided by the total.

Our MLS reports that our median sales price for July was $159,900 and August was $159,950. Although this may represent an increase (0.0003 percent) this is hardly noteworthy. Our average price for July was $176,990 which means an average price increase of 0.1 percent increase in August.

We don't know that this is cause for celebration, but the government and NAR apparently believe so. The NAR report does come with words of caution though. National sales are still 19 percent below August 2009 making it the second worst month in 15 years. Pundits are not predicting that sales will worsen; rather the indicators show that the slow recovery will include slow increases in housing sales.

The expiration of the homebuyer tax credits has had an impact as buyers approach housing investments more cautiously without those incentives. Whatever slight increases we have seen locally or nationally are no doubt influenced by the continued low interest rates. In fact, if you missed a tax credit when interest rates were closer to 5 or 5.25 percent (the rates near the end of the credits) you will still be money ahead by buying now. Lower interest rates today mean continuous savings over the term of your loan and in most cases will exceed the credit you would have received.

Renters would be served well to consider buying a home now too. Rents can rise, will rise over the next ten, twenty or thirty years, but the interest rate will guarantee your house payment will not increase.

At any rate, it appears the rest of the nation, on average, is beginning to adjust to the current economy and home sales, like the economy, are slowly moving in a positive direction. Whether this is true for your economy we can't say, but we call all agree, the economy can't move fast enough forward. We are not quite ready to celebrate, but we are encouraged by last week's news.

For a safe trip home call a Realtor. To find a Realtor to represent you visit the Coeur d'Alene Association of Realtors website http://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, ID, 83814.