Market stabilization continues

As we had hoped, the May statistics as presented by the Coeur d'Alene Multiple Listing Service show improved performance in several areas. Coeur d'Alene and Dalton continue the upward momentum seen the previous months with the May statistics showing improvement in number of homes sold and in average price of those homes.

When we compare 2012 to 2011 sales through the end of May each year, we see an 11 percent increase in that area, from 238 in 2011 to 253 in 2012. Some would attribute this increased activity to short sales and foreclosures sold at less than market value, however we noted an average price increase of 21 percent year over year. This geography represents the most improvement but other areas are showing signs of price stability if not appreciation.

Home prices in Hayden increased by 4 percent on average and the number of sales there was 5 percent above the same time last year. Post Falls slipped slightly, showing a 1 percent decline in average price or just over $1,000. We have actually sold eight fewer homes there than we did by last May. Some fear the loss of USDA Rural Development loans will cause further erosion, but the reality is that parts of Post Falls will still qualify for those zero or low down payment loans. Check the maps at www.USDA.gov to be sure, but for now at least the entire Post Falls area still shows as eligible.

Price erosion continues in the Silver Valley. That area posted a decline of 13 percent in average price however home sales increased by 14 percent over last year. Of course as the increased sales diminish the lower priced inventory, prices have to come up.

Our Bonner/Boundary County members report that their growth continues with a 17 percent increase in single family home sales and an average price increase of 6 percent. The Rathdrum/Twin Lakes/Hauser area also reported increased sales activity, selling 5 percent more units than last year although their average price slipped by 11 percent.

Please keep in mind that these figures reflect only single family, site built homes on less than an acre, so are not the complete story. Looking at all residential types over the entire MLS service area we find more positive news. Our number of residential sales shows a 10.5 percent increase over last year. While past reports showing an increase have also reflected a lower dollar volume, we are pleased to report that our volume is also up by 14 percent with an overall average price appreciation of 3.5 percent.

Last week we learned that more than 100,000 foreclosed properties were dumped into the housing market nationally. Locally, so far, our distressed property sales are fewer than last year at this same time. Last year too, sales of properties under $200,000 accounted for nearly 71 percent of our total sales whereas this year that number is down slightly to just over 68 percent, further supporting a market recovery of sorts. In fact, we are outperforming last year with our total number of sales in every price category except for properties of more than $1,000,000.

Even so, our biggest percentage gain in property sales was in the Waterfront category which showed a 57 percent increase with an average price some 24 percent below last year's average. Second to that was Residential Acreage properties whose activity increased by 37 percent with a modest decline in average price of just 3 percent. Categories showing increases in both number of sales and in average price were single family homes as reported above and in manufactured homes on leased lots as you find in parks.

Overall then, we are seeing recovery, although it is specific geographic areas that attribute the overall performance. Our hope is that, as some areas historically have dragged the market down, these performing markets will drag the remainder up.

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.