Market appreciation still climbing

2013 ended with an increase in sales of 21 percent over the previous year. That pace has cooled somewhat this year with sales at the end of May just 3 percent ahead of May 2013 when we look at the entire Coeur d'Alene Multiple Listing Service area. Some areas fared better than others, as is always the case, but the real surprise - and strongest performance - has been in the northern parts of Kootenai County.

Sales in the combined geography of Rathdrum, Twin Lakes and Hauser are up 44 percent over sales there last year at this time. The average price of sold properties there is 20 percent higher than at the end of May 2013. Sales in the rural area known as North County are up 13 percent with an average sale price that is a whopping 61 percent higher than the 2013 average.

In areas of higher population density sales are still strong and sellers are commanding higher prices than last year. Hayden is the leader with a 13 percent increase in average price and a 3 percent lead over last year's sales.

In Coeur d'Alene and Dalton the number of sales was spot on with last year but the average price is 6 percent higher. Post Falls continued its performance through May with a 1 percent year to year increase in sales and a 7 percent improvement in average price. Even though these areas are all showing signs of slowing the fact that there is still appreciation indicates the market is healthy. After all, continuing double digit increases in sales could quickly deplete inventory and lead to price inflation beyond healthy recovery.

MLS-wide we continue to see declines in distressed property sales, both bank owned and short sale activity. Where we had 85 short sales at the end of May 2013, this year that number dropped to 58 for a 32 percent drop. Regular readers will know, a short sale occurs when a home sells for less than is owed and requires cooperation from the seller and the lien holder, both who would like to avoid foreclosure. Foreclosure sales too, down from 167 in 2013 to 127 this year for a 22 percent difference, year over year.

Bonner and Boundary County's real estate market appears to be strengthening as they posted May sales figures that are 10 percent higher than last year with an average price that is 21 percent above the 2013 average there. To the East and West sales were a bit softer and prices actually declined, reflecting an adjustment in Washington counties reporting and in Shoshone County where they had one less sale than last year at May's end.

While it accounts for less than 1 percent of our market activity, we have seen a significant increase in properties selling for more than a million dollars. At the end of May in 2013 we had recorded only one such sale. This year we have posted 11. This could signal a return of the vacation homebuyer as markets improve in areas outside North Idaho, making our market an attractive second home market once again.

Let it suffice to say that, after a protracted and painful recession, we are always delighted to report positive movement in our local real estate market.

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.