Delighted with 2015

After reading last week about the closure of Vaagen Lumber’s stud mill in Usk, Wash., due to a “sluggish” housing market we were reminded again of how truly fortunate we in North Idaho have been to enjoy subsequent years of recovery. It has been our pleasure to report to you consistent gains in both activity and appreciation in all types of real estate and in all areas governed by the Coeur d’Alene Multiple Listing Service. For residential properties we reported gains for the sixth straight year as we climbed from the abyss that was 2009 — our lowest point of the last 11 years.

Since the month’s end was also the year’s end we did not have a recap of totals for the year by press time but will be delighted to report more positive news about our real estate market next week. In 2015 we also saw a resurgence in commercial real estate that appears poised to continue its momentum throughout 2016. More commercial real estate translates to more jobs which bodes well for our future.

Opinions vary on what 2016 will bring to the residential real estate market. We do know that the Fed interest rate increase had no immediate impact on mortgage rates. In fact, a week after the announced increase, rates for 30 year mortgages declined to the rate seen just before the announcement. Still some assure us that mortgage rates are destined to increase in this new year.

According to lending giant Freddie Mac the 30-year fixed-rate mortgage will likely average below 4.5 percent for 2016 on an annualized basis. Although they do anticipate mortgage rates will gradually move higher which could pose an affordability challenge. Every increase in mortgage rates increases the monthly payment so folks may have to adjust the size, age or location of a home to stay within their budget. Nationally, according to the mortgage giant, home prices will likely moderate slightly to 4.4 percent increases in 2016, driven in part by the reduction in home buyer affordability and reduced demand as a result of Fed tightening. They further predict industry activity will grow in 2016 despite the Fed action. They expect total housing starts to increase 16 percent year-over-year and total home sales to increase 3 percent. While home purchases will increase next year, higher interest rates will reduce the refinance volume pushing overall mortgage originations lower in 2016 than in 2015.

Freddie expects a strengthening labor market and pent-up demand to carry momentum into 2016. Idaho is fortunate to have seen employment rise, further strengthening our real estate market as more people get back to work, many of them in the construction fields building homes and commercial buildings.

We know we often are an anomaly when it comes to national prognosticators and their projections but we do watch closely to see if those predictions affect us or whether we are the exception so that we may report to you the truth about our local real estate market.

For all buyers, sellers, tenants, agents and brokers – Thank you for a stellar 2015. We look forward to working together to make 2016 even better!

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.