2014 exceeds expectations
The Coeur d'Alene Association of Realtors was excited to tell you last October that we had surpassed our 2006 sales volume for residential real estate. Because our production is not tallied until the last sale of the month has completed, even we were not aware of how well the market would finish at the end of December.
Now the results are in and they are better than anticipated. Not only did the average price in Kootenai County improve by 9 percent, we dramatically exceeded 2006's number of homes sold, but came surprisingly close to the record sales of 2005. Had we sold an additional 10 homes a month in North Idaho last year, we would have equaled what by all accounts was the most productive year in history for home sales.
We see no reason to panic however since the forces driving the market today are different than those of nine years ago. Back then it was easy money; loans that were made to people without any documentation of income and with little in the way of credit stability. Now, with buyers finding it more difficult to qualify for a home loan, it is low, low interest rates and higher employment that are providing the vitality we have waited so long for. Last week, 30-year mortgage interest rates actually dropped, landing at an average of 3.73 percent, the lowest in 19 months. Based on that and an economy that is apparently improving, we predict another good year for North Idaho real estate.
Coeur d'Alene and Dalton Gardens ended 2014 by posting volume gains of 4 percent over 2013 and an average price that increased by 5 percent. Post Falls finished strong with a 12 percent increase in number of sales at an average price that is 7 percent higher than reported in 2013. Hayden improved by increasing the number of sales there by 16 percent over the previous year while their average price closed out the year 11 percent above 2013.
The northern part of the county experienced long awaited relief from the recession in 2014. The communities of Rathdrum, Hauser and Twin Lakes, which we report as one due to size, increased their collective number of sales by 19 percent and improved their average price by 12 percent through the end of the year. North Kootenai County which includes many rural properties surprised everyone. Even though the number of sales there dropped by 8 percent, the average price of a home sold in that area was 23 percent more in 2014 than in the previous year. South Kootenai County showed some similarity dropping 4 percent in number of sales while appreciating their average price by 16 percent over 2013.
The Silver Valley finished flat with the same number of homes sold both years. Their average price showed modest improvement with a 2 percent year-over-year gain. Benewah County showed the most dramatic decline in number of units sold, off by 19 percent from 2013 but the average price there showed healthy improvement posting a 5 percent gain in 2014.
Bonner and Boundary counties showed resiliency coming on strong the latter part of 2014 which enabled them to post a gain of 17 percent more homes sold than in the prior year albeit at a price that was, on average, 9 percent below 2013.
When all areas are included, we saw an average for those reporting to the Coeur d'Alene Multiple Listing Service of 9 percent more housing units sold at an average price 7 percent higher than 2013.
The properties that gained the most value in 2014 were our waterfront listings. While showing only one sale more than 2013, the average price of a waterfront sale was over 37 percent higher in 2014.
Commercial property sales showed a 32 percent increase with nearly $81 million sold in 2014 suggesting that a recovery in that market sector is well underway.
For details specific to what is happening in your particular area, please ask your Realtor to tell you what you can expect from your property.
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.