Sales are neck and neck year over year

Many of the agents we spoke with last week are saying they are busy so we wanted to see why. On Friday, we checked the Coeur d'Alene Multiple Listing Service to see how the market was stacking up to last year. Remember last year was the year of tax incentives to spur housing activity.

This year, without a tax credit to fund down payments or bring down the cost of a home, we are running neck and neck with last year's sales. Interest rates remain historically low and prices have dropped to the point where the market seems to be normalizing. A check of the Idaho Housing and Finance Association website (ihfa.org) showed a 30-year fixed rate mortgage at 4.78 percent. Although rates have wiggled around that mark for some time, we watch regularly for anticipated increases. At least for now, activity and interest in housing seems good, partially due to the good loan rates.

With the amount of existing home inventory still available our new construction locally, as well as nationally, continues to lag and is likely to continue to do so. If you drive through the panhandle you will see a few custom homes and pre-sold houses being built, but contractors are hard pressed to start building homes in anticipation of ready buyers. The simple fact is there is just too much competition from existing home inventory. With bank repos, HUD homes and foreclosure auction opportunities it can be tough for builders to compete with their new construction.

About 40 percent of the homes sold this year have been bank owned properties. That is up from 29 percent reported last year at this time. Increases in available foreclosures continue to put downward pressure on available housing inventory which causes builders more angst about starting new projects.

Of the new developments that can be seen breaking ground across the Rathdrum prairie, most are offering modest homes at modest prices. These homes can compete with the distressed property market because they offer a brand new home without the need for repairs. Still, it is likely no nails will be driven on more than model homes until the builder has a signed contract to buy the home.

Since interest is high in foreclosed properties we still get questions about the various options. REO, HUD, Real Estate auctions, foreclosure auctions or short sales are all different and require a bit of knowledge to navigate safely through the process.

For guidance in buying real estate at any time you should contact a Realtor. This is especially true if you are thinking of buying distressed properties in a market with such a variety of opportunities. There is no commitment of money to glean knowledge from most agents and most have experience in a variety of sale types.

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.