Early numbers show increased activity

Although very preliminary, meaning the stats are not boiled down yet, January sales totals indicate a 37 percent increase in number over last January and an 11 percent increase over January 2009 giving us the strongest start in at least two years. Although our 114 sales exceed January of last year, the amount of available inventory remains higher as well.

The large increase in available inventory is due in part to increased foreclosure activity. Of those sales last month, over half were of bank or government owned homes. The HUD homes, written about two weeks ago by Anne Anderson, are coming on the market in a big way. Last year we had a total of 63 homes listed as for sale by the U.S. Department of Housing and Urban Development. This year, so far, we have listed 28 and only in the first month.

As explained here before, the law of supply and demand affects real estate as any other commodity. Because of the large inventory we see today, discounted properties are in demand. In January, 24 of our 114 sales were sold at less than $100,000. Sixty-seven of those sales were between $100,000 and $200,000. The highest price for a home last month was $665,000.

This helps explain the lack of new construction and therefore the lack of construction jobs currently in our area. When cheap existing homes are available it makes little sense to build new homes which would only increase the supply and keep downward pressure on prices.

A quick search of the Multiple Listing Service shows 361 homes now in pending status. Pending status indicates that these homes are under contract but we have no way of knowing when, or if, the transactions will reach completion. We do know that less than 34 percent of those pending are foreclosed houses, which indicates that there is some strength in traditional resale homes as well. Whether or not this is indicative of a slowdown in foreclosure listings, only time will tell. Opinions on this topic are as varied as the current housing inventory.

A check on Friday showed mortgage rates are up slightly, 4.88 percent compared to 4.75 the previous week. This fluctuation and predictions that as the economy improves mortgage rates will rise may be spurring some people to action. All we know for sure is that many of our members are reporting higher levels of interest in real estate purchases from buyers. Several we talked to this past week are involved in several transactions.

At the Traders Club commercial agent meeting last Thursday the conversation was largely upbeat with increased interest in buying and leasing properties reported by many of those attending. This is a welcome change from the lackluster reports from recent gatherings.

Of course, we watch daily for signals that will enable us to tell you that the market has found its footing and is moving forward. Although our January sales are encouraging from a productivity standpoint, it certainly isn't the news of market appreciation those who are holding real estate would like to hear.

As always, we encourage you to ask your Realtor to compile statistics in the specific area(s) that affect you.

Trust an expert... 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, Realtor 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.