Robust real estate market expected to continue

COEUR d’ALENE — Real estate sales are expected to be robust this year and, if the inventory were higher, the predicted increase in transactions would also be higher, the president and CEO of Coldwell Banker told 200 local agents Wednesday.

The local and national real estate markets mirror each other with those trends, Charlie Young said during Coldwell Banker Schneidmiller Realty’s annual awards banquet at the Hagadone Event Center.

"The forecast for the next year is a 2 percent increase in transactions nationwide and a 5 percent increase in prices," Young said in an interview after his talk, citing National Association of Realtors predictions. "We’ve been in a healthy, steady post-recession real estate market."

A bright spot in real estate sales and a sign of consumer confidence is the luxury market, where Coldwell Banker sold about 25,000 homes listed at more than $1 million across the country last year.

"That bodes well for the Coeur d’Alene market," Young said. "No other brand sold more on a national basis."

Several indicators — low unemployment, strong consumer confidence, smooth lending, economic growth and an increase in income — point to an optimistic year ahead, Young said.

"We have all the components of a healthy market," he said.

The lone concern, he said, is the low inventory both locally and nationally.

Before the recession, about 1.5 million homes were being built nationally. The clip was reduced to about 500,000 during the recession, but grew to about 900,000 last year.

"There isn’t enough homes to sell to meet the demand," he said. "That is a function of what happened during the recession and post-recession."

The rise in material costs, lack of construction labor due to workers who moved on during the recession and didn’t come back, and stricter land-use policies in some areas have contributed to the low inventory, Young said.

"On a local basis, if you’re thinking about selling your home, this is a good time to do it because buyers are really looking for inventory," he said.

Ideas to combat the low inventory include the real estate industry working with builders to focus on the hot markets, Young said. Spreading the word that now is a great time to sell to boost consumer confidence even more is also key.

"We need to help people who moved into their first home 10 years ago that they can be confident to move on because the economy is strong," he said. "There are a lot of people, particularly those who are younger, who are hunkering down and have recessionary hangover. We’re well into post-recession, but some people are still recovering."

Young called Schneidmiller Realty a "shining star" in the Coldwell Banker company, which has 91,000 agents in 47 countries.

"In markets like this, you need to make the market," Young said, adding that the local office has a 43 percent market share and a history of more than 40 years. "Gary Schneidmiller has been making the market for years. They understand it takes relationships with builders and sellers and the important aspects for consumers to understand."

Schneidmiller said the success is a reflection of the agents and employees.

"Without you... none of this works," he told the group Wednesday. "It’s really about you guys. I recognize and appreciate that."

Schneidmiller said rumors have surfaced about him retiring, so he cleared the air in that regard.

"I have no interest in retiring," he said, throwing out June 2035 as a tongue-in-cheek, random year. "If I love something so much, why would I retire?"