Effects of tax credits apparent
Although the tax credits have long expired, the resulting slowdown from its expiration is painfully apparent. Our May sales figures show a significant slowdown from last year's sales that will no doubt persist through September. September 2010 was the last month that credits could be applied to purchases, provided the contracts were in place by April's end.
Although not as bad as some areas of the country, here is how the credits, unemployment and foreclosures have affected our market:
• We have sold 8.4 percent fewer residences than at this time last year.
• Our total dollar volume has decreased by 11.8 percent.
• Our average sale price is decreased by 3.7 percent compared to last year.
• Our median price is off by 7.4 percent.
These figures are calculated by including all residential types, from manufactured homes to waterfront properties.
Sales of new construction are up slightly from last month as one would expect, but they still fall well short of last year. In 2010 15.5 percent of our sales were of new homes, this year that number is 10.6 percent. This is up from 9 percent in April. Since spring is a bit later and building season has only begun an increase would be expected.
Prices continue to lag behind last year in most areas covered by the Coeur d'Alene Multiple Listing Service.
Overall:
• Single Family home sales are off 9 percent with a drop in average price of 8 percent.
• Sales of homes on acreage dropped 12 percent with the average price 9 percent lower.
• Condo sales continue their recovery with an increase of 17 percent sold at an average price 20 percent higher than last year.
• Townhouses too are making their way up with an increase in average price of 5 percent.
• Waterfront sales activity increased by 24 percent although prices remain under pressure. The average waterfront property price was 2 percent below last year. The small number of secondary waterfront homes sold reflects a steeper decline with their average price 17 percent below last year's average.
• Averages for all manufactured homes, whether in parks or on acreage have declined too, with the homes on leased lots taking the biggest hit.
Even with all the foreclosure inventory on the market our active listings are fewer this year. As of the end of May we had a total of 7,078 listings, 3,683 homes. This represents a decrease of 10 percent in all listing types and 13 percent fewer homes, which supports the fact that our rate of absorption has improved. In May last year we had 21.5 month's of inventory, down to 18.6 this year.
For statistics pertinent to your property's location and type, contact your Realtor. They have access to up- to-date figures to help you understand what is happening in your neighborhood. Remember, all real estate is local and the statistics in your neighborhood are specific to that area.
If you didn't know, there are still tax credits available in Idaho. The Idaho Housing and Finance Association (www.ihfa.org) offers a credit of up to $2,000 a year for a one time fee of $300 for first-time homebuyers. These credits are annual and up to 20 percent of your total mortgage interest paid. IHFA is still accepting applications too, for their Emergency Homeowners' Loan Program for those who have been impacted by job loss or other unpredictable events.
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 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.