Stats show positive signs
This year's statistics so far indicate a modest improvement in our overall real estate market. Although we do not see appreciation in all areas and in fact, some areas show decline, with only 244 sales of residential properties reported so far, it is too soon to predict a trend.
For example, we could get really depressed when we see that sales for Coeur d'Alene and Dalton Gardens are behind last year by 11 percent, but then we could get excited when we see the average price for that geography is up by 20 percent. These statistics somehow lose their impact when we see that the 11 percent decline in sales only reflects a difference of nine total residences, or four and a half per month.
Or, take for example the South Kootenai County statistic that shows a whopping 50 percent increase in sales and a 99 percent increase in average price! When you have two sales compared to three, it's easy to see that there is not a lot of cause to celebrate.
Still, when we look at overall performance in our Multiple Listing Service, we are encouraged that market activity continues to grow. Admittedly the growth is moderate at best, but we are showing consistent improvement when measured over the past several months. Regular readers will recall that 2011 was the third consecutive year of increased sales numbers since 2008. At year's end 2011 we showed a 4 percent increase from 2010.
This year - it is early yet - we are showing a 10.6 percent increase in the number of sales when we include all geographical areas and all types of residential properties compared to last year. Excluded of course are multi-family properties. Included are mobile homes, condos and high-end waterfront properties. When we look at this inclusive category we see that the average price is still lagging at 9 percent below last year. Our median price however - this means half the homes sold were above and half below - shows a 1 percent improvement over the same time last year.
Condominium prices appear to be inching up still with our average condo price 10 percent higher than at this time last year. This could be why the number of sales this year to date are down from a total of 33 in 2011 to 26 in 2012.
Waterfront property sales are now 70 percent higher - 17 compared to 10 last year - but the average price so far is 28 percent lower than last year. Not to panic though, because these properties vary greatly in price and a few lower priced properties can drag down the averages.
We are gradually absorbing active inventory. Last year at this time we had a total of 6,041 properties listed in the Coeur d'Alene Multiple Listing Service. Today we have 5,567. As we continue to absorb inventory we look for new construction to increase and for prices to stabilize and ultimately increase.
Interest rates for mortgages of all types are still very low and should contribute to sustained activity in all market sectors. At least we are seeing that prices are now making it affordable to own a home and in many cases folks can buy cheaper than they are renting.
Stay tuned. As the year passes more sales will provide a better picture of what we can expect from the market. As always, your Realtor can provide you data that is specific to your neighborhood and provide you with a realistic view of what your future holds.
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.