Realtors concur, market is improving

Last week at The Coeur d'Alene Resort more than 220 Realtors converged to conduct the business of the Idaho Association of Realtors, participate in continuing education and network with peers from across the state. In conversations with these Realtors we gained a "boots on the ground" perspective from all corners of the state and communities of all sizes. The consensus? "The market is improving." Many lamented their decreasing inventory and told stories of multiple offers on well priced listings, much the same as we have seen locally.

It is easy sometimes to be engulfed by local conditions so it is great, at least once a year, to get a broader perspective, especially when the perspective from geographically distant areas is the same as here at home. We all experience the same challenges with delays in transactions as discussed last week yet we share the optimism that the real estate market is beginning to take on characteristics more like a "normal" market.

Locally we are seeing inventory shrink as properties are sold. At September's end we see our year over year comparison of available residential listings is nearly 13 percent below last year at the same time and our inventory of all types of real estate is off by nearly 12 percent. As available listings decrease, we see prices begin to rise.

In Kootenai County, our average price for a site built home on its own lot reflects a 10 percent increase over September 2011 while our median price is up by 12 percent. As inventory absorption continues to escalate in our outlying areas we anticipate price appreciation there as well. Most parts of our Multiple Listing Service area reflect a higher number of sales with the exception of South Kootenai County where sales are 43 percent fewer than last year, yet their average price is up by 6 percent.

Post Falls has remained steady and although we have seen three less home sales there this year, their average price has increased by a healthy 5 percent. Reporting agents in Bonner and Boundary counties and in the Silver Valley are reporting double digit increases in sales activity but the persistently deflated values continue to provide buyers with lots of opportunity to save - at least in the short term.

Distressed properties which at one time were half our sales have declined to 35 percent in our most recent statistical report. As you recall, "distressed" includes those properties that are selling for less than is owed, or "short sales," and properties that are lender owned due to foreclosure or surrender of deeds to lenders by the homeowner. This year we have seen 25 percent fewer lender owned properties sell and our short sales have increased by 20 percent. This indicates that lenders are more willing to help debtors avoid costly foreclosure proceedings by settling their loans at a discount which arguably is less damaging to the borrower's credit.

We have also seen a significant increase in the percentage of homes sold in the $200-300,000 range, a sign that lower mortgage interest rates are allowing people to afford more home. That price range last year represented 15.5 percent of our sales whereas this year more than 19 percent of our home sales are in that range.

Waterfront home sales increased a whopping 60 percent over last year's total number but at an average price that was still 9 percent below last year indicating that buyers are still finding bargain priced vacation homes. At the current pace however, it is more than likely those prices will soon begin to escalate.

Our investment property sales are spot on with last year although their accumulated value is nearly half of the total dollar volume the previous year. History tells us that commercial property recoveries lag behind residential so we look for those properties to gain value too in the coming months.

The National Association of Realtors has told us for years that, "All real estate is local." It is encouraging then to note that local real estate in all locales - at least in Idaho - is improving.

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.