Kootenai County home prices fall

COEUR d’ALENE — The median price of a single-family Kootenai County home fell 10% in January from the previous month, according to the latest report from the Coeur d’Alene Regional Realtors.

Based on sales of 110 single-family homes in January, the median price was $472,275. It was last that low when it hit $470,000 in August 2021.

The median price of a single-family home in Kootenai County in January and December of 2023 was $525,000.

The number of active residential listings in the county as of Monday was 630, according to the regional Realtors group, up from 609 one year ago.

Lindsay Allen with Locate Real Estate recently told The Press that although the area is seeing a decline in median home price, it’s important to keep in mind that between 2020 and 2023 there was an overall 48% increase in the median sales price. 

“This cooldown in prices was necessary, but also driven by extended period of rate increases,” she wrote.

Allen added that from 2022 to 2023 median home prices only increased 4.5%, compared to 35% and 15% in the previous two years.

“Our biggest gains and losses look like they are behind us,” she wrote.

Allen said January's median price decrease could also be attributed to sales that were generated from contracts most likely written in late November through December. Rates were still sitting above 7% at that time.

In January 2023, there were 115 sales. This year it was 110. 

"So fairly flat there. The big thing I am seeing with these 100 or so sales is the volume of January sales is down 18% year over year from about $71 million to $65 million," Allen said.

She said inventory ramps up in March to May, with the peak of inventory usually coming in June. 

If interest rates dip down closer to 6% and even into 5%, Allen expects to see more buyers come into the market. 

"Some neighborhoods, and certain turnkey product is still selling really quickly and even getting multiple offers," she wrote. "So expect to see a little bit of that again, along with the waiving of inspection contingencies. More buyers mean prices will push back up through summer and possibly into the fall."

She said North Idaho is also not near the top of the lists of cheapest places to live or the hottest markets, "so the eyes of the nation aren't necessarily on us anymore.

"I think we are settling into our new normal here for the next couple of years, single-digit appreciation, more inventory when rates come down, but lots more buyers, too," Allen said.

Allen said real estate professionals generally agree that when mortgage interest rates come down into the mid-to-low 5% range they will see a large chunk of the pent-up demand come back into the market. 

The interest rate on a 30-year fixed-rate mortgage fell to 6.2% on Tuesday, while the interest rate on a 15-year fixed-rate mortgage was 5.750%.

“And we also believe that when those extra buyers come into the market inventory will not be enough to meet demand,” Allen wrote “There will be some neighborhoods and price ranges that could see multiple offers and prices being driven up again.”

The median price of Shoshone County single-family homes was $232,3450, based on 12 homes that were sold in January.

That’s up slightly, 1%, from January 2023, but down nearly 25% from $300,000 in December 2023.

Coeur d'Alene remains a desirable place to live.

Lottery 'n Go said it conducted a survey with 3,000 participants, posing the question: "If you won a lottery, what kind of property would you invest in?"

Lakefront homes on Lake Coeur d'Alene landed 24th in the results, with Hawaii taking the top two spots.

"Coeur d'Alene is renowned for its stunning lake and luxury lakefront properties," Lottery 'n Go wrote in the survey. "These homes typically offer private docks, spacious outdoor living areas and beautiful views of the lake and surrounding forests."