Robust market expected to continue

COEUR d'ALENE — The local real estate market is expected to continue to sizzle in 2019, but industry followers say it still won't be at the unhealthy pace of another bubble.

"The best markets are expanding, but not growing a ridiculous amount that's not sustainable," Jim Gillespie, Coldwell Banker's national CEO for eight years and recently retired chairman emeritus, told The Press on Wednesday.

"This (North Idaho) market is still going to continue to grow, but people shouldn't have to worry here."

Gillespie was a keynote speaker during Coldwell Banker Scheidmiller Realty's annual awards banquet at the Hagadone Event Center attended by more than 200 people. He was Coldwell Banker's national CEO from 2004 to 2012, riding the boom-bust roller coaster.

"We're not having the massive job losses and oversupply of real estate that was the case in 2008 through 2010," Gillespie said.

Gary Schneidmiller, broker of Schneidmiller Realty, agrees that indicators point to a continued strong local market.

"I believe our market matrix are healthy," he said after the banquet. "People continue to come here from other metro areas for the quality of life, beauty and to retire. That will sustain us for the foreseeable future."

Mark Johnson, Schneidmiller Realty's president and CEO, said the local firm had its second-best sales year ever with more than $1 billion in closed sales in 2018. Its top year was $1.38 billion in 2005, he said.

He predicts gross sales volume will increase 2 to 4 percent this year, so the record could be threatened.

"The new construction market is so strong," Johnson said. "We believe inventory will stay low, which will drive demand for the housing market."

Coldwell Banker Schneidmiller Realty continues to shine on a national scale within the company. It has qualified for the Chairman's Circle — the highest honor bestowed by the company — for 27 consecutive years.

To qualify for the honor, firms must be among the top 1 percent in sales out of about 800 individually owned firms in Coldwell Banker's system. Only five other firms nationwide have achieved the honor longer.

"You guys have highest regard over in corporate headquarters," Gillespie told banquet attendees.

Liz Gehringer, Coldwell Banker's national chief operating officer who also spoke at the banquet, told employees that they are "the elite of Coldwell Banker" on a national scale.

Gehringer said some firms are experiencing a decrease in transactions, but that's not the case here.

"Prices are still healthy across the country, but they're increasing (even more) here," she said.

Gehringer said she believes Schneidmiller Realty's culture has kept the local firm at the top of its corporation.

"I truly believe that your company's culture is more important than strategy and business execution," she said.

Gehringer said it's obvious that Schneidmiller Realty, which employs 258, pays attention to the economy and market based on its performance, but it also focuses on developing talent.

"You make sure people affiliated with this company are having satisfying careers," she said.

Coldwell Banker Agent Linda Wilhelm surprised Schneidmiller with the Post Falls Chamber of Commerce's Heritage Award, which has only been given to two other businesses. She accepted the honor on his behalf last week while Schneidmiller was out of town. A video was shown of the presentation during Wednesday's banquet.

Schneidmiller Realty opened in 1973 after a starter home on Spokane Street in Post Falls sold for under $20,000.

Employees in Schneidmiller Realty's two offices donated more than $150,000 and 1,000 volunteer hours to local charities in 2018.

Gillespie said it's also a great time to buy real estate as an investment because of the strong return on your money.

"Selling investment properties is one of the best investments you can make," he said. "On top of that, you get to write off everything you do for that property."