Inventory slows sales
Even though by all accounts the market area served by the Coeur d'Alene Multiple Listing Service is brisk, the total number of sales may be affected by shortages of suitable housing. At our last market report sales of homes in Kootenai County were 21 percent ahead of last year. At the end of May that decreased to what most would agree is a still healthy 18 percent increase in the number of sales. For the entire MLS the change was from 18 percent in April to a 16 percent increase in year over year comparisons.
Taking a closer look at available residential listings we can see that inventory has shrunk by more than 16 percent when compared to the same period in 2014. No wonder agents and consumers seem frustrated when trying to find a proper home, especially in the $100,000-200,000 price range where most of our activity occurs. Consequently those who are able are moving to higher priced categories, causing an increase in activity there. For example homes in the $200,000-300,000 price range have increased in direct proportion to the decrease in home sales in the lower priced category.
Supply and demand drive prices in any commodity and real estate is no different. The two areas of our jurisdiction that have supply in excess of last year, Bonner/Boundary and Benewah counties still demonstrated healthy price appreciation though, as demand appears to exceed those supplies.
For May, compared to May 2014, here is what is happening in single family homes on lots less than two acres in size:
Coeur d'Alene/Dalton Gardens shows an increase in number of homes 14 percent higher.
The average sales price there is up 13 percent.
Post Falls reports a sales increase of 21 percent over last year with an average price increase of 6 percent.
In Hayden the number of home sales is up 8 percent while their average price is up 12 percent.
For the combined area of Rathdrum, Hauser and Twin Lakes sales are up 35 percent with an average price that is 23 percent higher than last year.
In the Silver Valley the number of homes sold is down by three units but their average price gained traction, increasing by 12 percent over 2014's average.
Benewah County's one additional sale increased their production by 7 percent over last year but their average price is up 44 percent.
Bonner and Boundary counties sold 8 percent more homes with an average price increase 32 percent above last year's average.
Our total MLS sales stand at 16 percent higher than 2014 with an average price that is also 16 percent higher. Total sales for all homes, manufactured to luxury, are at $420,844,311.00 or 27.1 percent more dollar volume than last year.
Your Realtor has the tools and knowledge to help you understand your own micro-market so be sure to ask what is happening there.
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.