Expectations exceeded in housing market
Last month we reported that our Year to Date (YTD) sales appeared to be approaching those not seen since 2007. Preliminary sales figures for the month of November put our YTD sales well in excess of that year. In Coeur d'Alene our number of single family homes shows an increase of 33 percent over our 2012 performance and nearly 300 sales ahead of 2007 at the same time.
Sales of single family homes across the entire Multiple Listing Service show dramatic improvement as well with an average increase in number of sales at 22 percent ahead of last year. It is no surprise that some of the biggest gains were in the smallest areas of our market, since a few homes less or more can account for a big swing in percentage of gain or loss. When we look at North and South Kootenai County however, the difference is dramatic even in these somewhat sparsely populated borders. North Kootenai County showed an increase in sales of 74 percent with a 75 percent increase in the South. Average prices were up as well, by 16 percent in the North and 13 percent in the South.
Our second most populated area, Post Falls, while still benefiting from some Rural Development loans, achieved a 24 percent increase in number and a 12 percent increase in average price. This overshadows the 7 percent gain in the average sale price of homes in Coeur d'Alene.
Hayden's average price increased by 9 percent when compared to last year and the sales volume there exceeds 2012 by 14 percent. Rathdrum, Twin Lakes and Hauser, which are reported as one area in our MLS performed respectfully again with an increase in sales that is 11 percent above last year. The average price in that area is up by a full 15 percent.
Sales of distressed properties have slowed dramatically as a portion of our total sales. Last year foreclosures and short sales made up 33 percent of our totals where this year that number has dropped to just 17 percent of our total housing market. On the other hand, we continue to see strength in new housing as the sale of newly constructed homes doubled from 8 to 16 percent of our totals.
Sales are up across the board with the exception of manufactured homes and waterfront. Although the average price of manufactured homes increased by 9 percent, there were an insignificant, five fewer sales which provided them with a loss of 8 percent from last year. Waterfront properties continue to lag the balance of the market showing a decrease in number of sales by 12 percent with an average price that is 6 percent below 2012. Secondary waterfront too, showed an average price deficit of 6 percent although the increase in number of those types of properties ia a whopping 73 percent more than at the same time last year.
Our residential inventory is less than half what was on the market at this time last year. Interest rates, although fluctuating, remain very low and provide buyers with less incentive to wait than in previous, recent years.
The Commercial Real Estate (CRE) market is gaining traction as well. The best performing category is Multi-Family housing with a 15 percent increase in number of sales. This would be higher but for the dearth of inventory available to those investors who find that market segment attractive.
All in all, it has been a good year. We can say with confidence that we have worked our way out of a long real estate recession. If economic conditions continue to improve as reported last week, we may be out of the woods.
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.