Low rates only part of the picture

Even though interest rates for 30-year mortgages dipped below 4 percent again last week, that is not the only good news. More on that later. Prior to the announced average of 3.99 percent interest we received reports that home loan activity has increased. The Mortgage Bankers Association reports in its weekly mortgage market survey the week ending Nov. 14 that loan demand was on the rise driven mostly by applications to purchase a home.

Home-buyers are not the only group demonstrating an interest in the housing market. Low interest rates, affordable home prices and solid job creation are making home builders more optimistic according to the latest National Association of Home Builders/Wells Fargo Housing Market Index. The NAHB/Wells Fargo index gauges builder sentiment over current single-family homes sales, sales expectations for the next six months, and buyer traffic. All three components measured on the index rose in November.

"Growing confidence among consumers is what's fueling this optimism among builders," said NAHB Chairman Kevin Kelly. "Members in many areas of the country continue to see increasing buyer traffic and signed contracts."

Add to that the recent resurgence in refinancing and home equity loan applications and the interest in the housing market is obvious. People are once again seeing appreciation of home values in most parts of the country and, as usual, are beginning to capitalize on the return of stable real estate investments.

Our local real estate has demonstrated strongly the wisdom of a home purchase with steady gains in average and median prices across the board. This trend has continued long enough that people have lost their fear that they will end up under water on their home loans and things are pretty much back to normal.

Of course another real positive sign for the future of our market is the recent announcement that Advanced Thermoplastic Composites is breaking ground for their new facility in Post Falls and will bring with them at least 50 jobs. Many of those workers are likely to need housing and will add more fuel to the already strong Post Falls housing market. ATC's move is likely just the tip of the iceberg as more businesses look to take advantage of the tax incentives that became available in Idaho last July. According to the Spokane Journal of Business at least one other company, "larger than ATC" is considering a move to Idaho.

With Steve Griffitts and Jobs Plus, Inc. armed with these new incentives - which can save employers hundreds of thousand of dollars annually - we anticipate more growth from incoming large employers. With lower interest rates, median home prices below the national average, the good wages those companies must pay to qualify for the incentives and the unparalleled quality of life to be found here, we think the outlook for our real estate market is positive.

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.