Market activity positive in third quarter
It's easy to look around and be gloomy, but there is always something positive to be found if you look closely enough. Just as we reported here last week, we are slightly ahead of last year's total number of sales as reported by the Multiple Listing Service.
Friday brought news that unemployment is down, slightly, from last month in Idaho and although it does not imply great numbers of people are finding work, it does provide hope that the worst may be over.
Even though our unemployment figures didn't improve overall in Kootenai County, we did make gains in some areas. According to figures provided to us by Alivia Body, Regional Economist for the Idaho Department of Labor, we posted job gains in government, education, health care and service jobs. Any gain in jobs is the precursor to gains in housing. The more people we can get back to work, the more they will be empowered to live under their own roof instead of somebody elses.
Also Friday, we learned that the National Association of Realtors had been successful in our efforts to re-establish the former, maximum loan limits on FHA backed loans. The Senate voted 60-38 Thursday night to restore the old limits of 125 percent of the median home value in an area. Lowering limits would hurt the housing market. Although there will be tough competition from the House for this measure we will continue the fight to restore these limits.
We also heard of something, last week, we hadn't before - the "Misery Index." Initiated by an adviser to President Lyndon Johnson in the 1960s the rate is calculated by adding the unemployment rate to the inflation rate. As of this September's end, the Misery Index was 12.97. The highest rate was in June 1980 at 21.98. Many of you will remember that inflation was rampant then, unemployment was high and mortgage rates were in the high teens instead of today's rates that are still below 4 percent. Those interest rates have to be responsible for our increases in production and that is another positive thing.
Even though our home prices according to the Coeur d'Alene Multiple Listing Service are off 7 percent on average over last year, our third quarter sales of residential listings outperformed 2010 by 14 percent. That is a move in the right direction. The more homes we sell, the less inventory there is to compete with those of you who would like to sell your homes. This also means we are consuming some of the distressed property inventory which drags down prices, particularly in the neighborhoods with the largest number of these properties for sale.
Find something positive in your world today and let's all work together to get that darn misery index down. The lowest it's been is 2.97 so let's make that our goal.
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.