You saw it here first

Several weeks ago we reported that those of you who were waiting for the bottom of the market had likely missed it. The last few months sales figures show increases in sales in most areas and average price increases in our densely populated areas. Due to affordability driven in part by super low interest rates - last week rates dipped below 3.6 percent - we are optimistic that our modest recovery will continue to build steam.

Now comes Thursday's report from the Wall Street Journal, "Housing Passes a Milestone." The first paragraph in the article attests, "The housing market has turned - at last."

The U.S. finally has moved beyond attention-grabbing predictions from housing "experts" that housing is bottoming. The numbers are now convincing."

Of course this is encouraging news and reinforces that we are not just riding an anomaly of activity in Kootenai County. The positive movement in our local market this year is taking hold across the nation, although not all of the nation nor all of North Idaho. As seen in past reports, even though the number of sales in most of our areas are improving, prices in many continue to lag. So, if you are one of those lamenting that you missed the bottom of the market there are still real estate investment opportunities.

One could argue that, given the modest recovery - even where prices are rising - there is still plenty of opportunity. We agree. Never have interest rates been lower and for those who qualify, rates through Idaho Housing and Finance are even lower than industry averages for traditional lenders. A Friday check of the IHFA website (ihfa.org) shows a 30-year fixed rate of 3.25 or a quarter percent lower than last week! Never in the history of 30-year mortgages have rates been so low and to us, that equals opportunity.

If, you happen to be looking for properties in our rural communities - where prices have not recovered yet - the opportunities are even greater. We believe, as inventory increases in our cities, that bargain hunters will turn to those outlying areas. As those rural communities' real estate inventory is consumed by buyers, their prices too will begin to rise. We anticipate that will happen sooner, rather than later.

According to the Journal article, "Nearly 10 percent more existing homes were sold in May than in the same month a year earlier, many purchased by investors who plan to rent them for now and sell them later, an important sign of an inflection point. In something of a surprise, the inventory of existing homes for sale has fallen close to the normal level of six months' worth despite all the foreclosed homes that lenders own. The fraction of homes that are vacant is at its lowest level since 2006."

Is there any risk to investing in real estate at this time? Probably, but then hasn't there always been risk? Many risk adverse buyers thought it too risky while we were headed toward the bottom so they waited. Now that prices are on the rise, many will wait to see if they will fall again. If and when they do fall the risk may very well be in missing the lowest interest rates in the history of 30-year mortgages.

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.