Home sales soar 24 percent

COEUR d'ALENE - Brad and Rachel Grant have to be quick decision makers in today's real estate market.

The first-time homebuyers have been hunting for a home for three weeks in the Coeur d'Alene area and have learned places in the $120,000 to $150,000 range are moving fast.

"A lot of homes are coming on and off the market," Brad said. "It's a quick turnaround."

Brad said that situation - along with interest rates that have risen from 3 to 4.5 percent - have increased the couple's urgency to buy.

According to a recent report by the Coeur d'Alene Multiple Listing Service, home sales countywide are up 24 percent (646 to 804) compared to last year at this time.

The Coeur d'Alene/Dalton Gardens area had the biggest jump in sales of 36 percent (264 to 359). Post Falls had a 30 percent hike (188 to 245).

Hayden sales were up 6 percent (123 to 130), while Rathdrum/Twin Lakes/Hauser sales were down 9 percent (47 to 43).

"The market continues to be a very strong sellers' market in the under $200,000 price point," said Jennifer Smock, managing broker of Windermere Coeur d'Alene Realty. "We are seeing multiple offers regularly on homes in all areas of Kootenai County that are priced accordingly to the market.

"However, the flip side to this is the resurgence of appraisal issues. With pricing continuing to rise slowly, some homes are priced a bit too far above where they are able to appraise for and this is causing a slowdown of the sales process. We have seen a few homes come back onto the market due to this."

The average price for homes countywide is up 6 percent - $181,210 to $191,306 - compared to this time last year. The median price is up 13 percent - $150,000 to $169,665.

The largest price jump has come in the Post Falls market, where the average price is up 16 percent ($151,923 to $175,949).

Pete Faust, with Keller Williams Realty in Coeur d'Alene, said the market continues to show positive signs.

"Some of the local builders are already jumping in and raising prices across the board to take advantage of the mini boom somewhat reminiscent of the bubble days - some of them $10,000 or more overnight," Faust said.

Repossessions and short sales continue to be flushed out of the market.

Repossessions are down from 255 last year to 161 this year, and short sales are down from 101 to 85.

"This also contributes to a stronger market - hopefully a more sustainable one," Faust said.

On the commercial side, it "continues in its own cyclical pace" and will follow the housing market, Faust said.

Among other commercial projects, the Highway 41 corridor in Post Falls is seeing some activity, the Ground Force mining manufacturer is expanding and the Winco grocery store construction is progressing in Coeur d'Alene.