Are we doing it again?

As we near the half-way mark of 2013 we the members of the Coeur d'Alene Association of Realtors are very busy making sure that buyers and sellers of real estate are getting together to transfer ownership from those who are done with it to those who want it.

Many would agree that the last time we were this busy was the beginning of what would become known as the real estate bubble. Things were different then though and now we are dealing largely with buyers who have taken the necessary steps to qualify for a real estate loan. They are employed, have good credit and have demonstrated the stability that lenders are requiring, unlike the buyers of that bygone period.

As we continue to emerge from the recession of the last five years, we are beginning to see confidence levels rise. Buyers are more confident that they can actually build equity, Realtors are more confident they can pay their bills and sellers are confident that they will actually sell their property without taking a huge loss.

While this confidence makes it a better market to conduct business in, some appear to be buying into the "sky is the limit" mentality that preceded the bust of that historic bubble. While our market activity began a surge in 2005, by the fall of 2008 we had begun a free fall-like decline that would ultimately lead to a bottoming of the market a few years later.

The reality of that decline was difficult for many to accept. Some listings were renewed several times without any price adjustment. As those properties languished on the market, many became lost to creditors and were sold for pennies on the dollar as foreclosures. Those foreclosures of course, dragged other prices down with them and as the market adjusted, properties began to sell again and the price building started over.

So far this year we have seen some significant gains throughout our Multiple Listing Service. As we report those gains, sellers gain more confidence and some Realtors catch the fever of that enthusiasm, pricing their listings above market value in hope that the market will catch up. When a property is listed at market value and the seller is in an area of demand, their listing time may be short. We know of several homes, for example, that sold the first day, or within a few days of being listed. It is easy to see then, why some would think, rather than "it was priced right," that it was priced too low. We Realtors know that often, the first offer we get is the only offer we get, yet some sellers will hang on to a high price until the market slips away.

An article in the Daily Real Estate News on Friday reported:

"Home prices have been soaring by double digits compared to last year's numbers and the National Association of REALTORS are calling the rises "unsustainable."

The price for existing home sales surged 15.4 percent higher in May compared to last year.

"Some of the increases can be explained by the fact that it is recovering from an over-corrected situation," says Lawrence Yun, NAR chief economist. "But with people's income rising at only 1 or 2 percent and prices rising in double digits, it cannot continue."

We actually heard from a member last week who reported that a buyer's full price offer had been rejected by the seller. Not only is that not good business, it is likely a breach of a contract to sell and an actionable event.

A vibrant market can do that. To buyers, to sellers and to agents. But before you decide to hold out for your dream offer remember - remember that load you took to the thrift store after your last garage sale - if it is priced right it will sell. If it is priced too high the value is too hard for most to see so your chances of selling are slim. Don't end up giving it away because you can't hang onto it any longer.

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