Local Real Estate Market

By KIM COOPER/Special to The CDA Press
As promised, the staff of the Coeur d'Alene Multiple Listing Service has completed the monthly task of compiling October sales figures and we can now present them to you. Each month staff takes care to ensure all sales for the month are recorded before completing the statistics for the current period. These are reported as Year to Date (YTD) for comparison. When you read the percentage comparisons below, they will always be, as compared to the same period in 2010. 

Although the market is anything but brisk, we are seeing some improvement in the number of properties changing hands. As reported to the MLS, 2011 sales exceed 2010 by 4 percent on average across our entire service area. 

Benewah and south Kootenai counties reported the highest increase in sales with 65 percent more in Benewah and an 86 percent increase in south Kootenai. Realtors in Benewah have sold a total of 33 residential properties this year compared to 20 last. Although we can't be certain what is driving the volume increase, it is likely affected by the 12 percent decline in average price and the dearth of available rentals in that market. 

The increase in south Kootenai County could be an indication of the return of second home buyers. Fourteen homes sold in that region in 2010 while 26 have been sold YTD with an increase in average price of 53 percent. 

Our urban areas present mixed results with Coeur d'Alene sales off 9 percent and the average sales price off 5. Post Falls reported a 7 percent decline in sales. Sales there remain at 12 percent below last year, consistent with recent performance. Sales are up 10 percent in Hayden though their prices continue to perform poorer than last year with the average sale price there 10 percent off 2010. 

Our agents in Bonner and Boundary counties, which are reported as one area, likely performed better than any other reporting geography with a 17 percent increase in numbers and an average price increase of 3 percent. This improvement could also be an indicator of the return of vacation or second home buyers with Sandpoint the largest market of that reporting area. 

Silver Valley sales continue their increases for the year, outperforming 2010 by 35 percent although by selling residential properties discounted, on average, 17 percent from 2010. 

Of those areas showing losses in average priced residences, the Rathdrum/Hauser/Twin Lakes geography posted the most modest price decline at 2 percent while increasing sales by 20 percent. 

The statistics above reflect only single family homes on less than one acre. When we add the balance of residential homes to the mix we see the residential market as a whole reflects an actual 2 percent increase in dollar volume and an overall average price reduction of 3.5 percent. 

The condo market continues to show some stability and is maintaining a lead over 2010 with a 14 percent increase in sales and a strong 10 percent increase in average price. 

Sales of waterfront properties, as evidenced by the south Kootenai and Benewah figures, showed a sales increase of 28 percent and an average price increase of 8 percent. Secondary waterfront did not fair as well with sales declining by 30 percent and an average price reduction of 19 percent. 

Your Realtor watches your market daily and will be happy to provide you with information to help you make decisions about the condition of your real estate, be it homes, land, apartments buildings, retail or office. Remember, we don't make the market, we just report it. 

Existing-Home Sales Off in September but Higher Than a Year Ago
Washington, DC, October 20, 2011  

Existing-home sales were down in September on the heels of a strong gain in August, but remain well above a year ago, according to the National Association of Realtors®. 

Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 3.0 percent to a seasonally adjusted annual rate of 4.91 million in September from an upwardly revised 5.06 million in August, but are 11.3 percent above the 4.41 million unit pace in September 2010. 

Lawrence Yun, NAR chief economist, said the market has been stable although at low levels, and there is plenty of room for improvement. “Existing-home sales have bounced around this year, staying relatively close to the current level in most months,” he said. “The irony is affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes, but the share of contract failures is double the level of September 2010. Even so, the volume of successful buyers is higher than a year ago and is remaining fairly stable – this speaks to an unfulfilled demand.” 

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.11 percent in September, down from 4.27 percent in August; the rate was 4.35 percent in September 2010. 

Contract failures were reported by 18 percent of NAR members in September, unchanged from August; they were 9 percent in September 2010. Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses. 

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said access to credit is unbalanced. “All year we’ve been discussing the fact that many creditworthy home buyers are being denied mortgages,” he said. “On top of that, loan limits have been lowered, which means buyers of higher priced homes, including many in more expensive housing markets, now have to pay a higher interest rate for a jumbo mortgage than buyers who can qualify for a conventional loan. We need to remove the roadblocks to a housing recovery – not place more obstacles in the way of financially qualified buyers.” 

All-cash sales accounted for 30 percent of purchase activity in September, up from 29 percent in August and 29 percent also in September 2010; investors make up the bulk of cash purchases. 

Investors purchased 19 percent of homes in September, down from 22 percent in August; they were 18 percent in September 2010. First-time buyers accounted for 32 percent of transactions in September, unchanged from August; they were also 32 percent in September 2010. 

The national median existing-home price for all housing types was $165,400 in September, down 3.5 percent from September 2010. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 30 percent of sales in September (18 percent were foreclosures and 12 percent were short sales), down from 31 percent in August and 35 percent in September 2010. 

Total housing inventory at the end of September declined 2.0 percent to 3.48 million existing homes available for sale, which represents an 8.5-month supply at the current sales pace, compared with an 8.4-month supply in August. 

Single-family home sales fell 3.6 percent to a seasonally adjusted annual rate of 4.33 million in September from 4.49 million in August, but are 12.2 percent above the 3.86 million-unit level in September 2010. The median existing single-family home price was $165,600 in September, down 3.9 percent from a year ago. 

Existing condominium and co-op sales rose 1.8 percent a seasonally adjusted annual rate of 580,000 in September from 570,000 in August, and are 5.6 percent above the 549,000-unit pace one year ago. The median existing condo price5 was $163,800 in September, which is 1.0 percent below September 2010. 

Regionally, existing-home sales in the Northeast rose 2.6 percent to an annual level of 790,000 in September and are 6.8 percent above a year ago. The median price in the Northeast was $229,400, down 3.3 percent from September 2010. 

Existing-home sales in the Midwest slipped 0.9 percent in September to a pace of 1.09 million but are 17.2 percent higher than September 2010. The median price in the Midwest was $137,400, which is 1.4 percent below a year ago. 

In the South, existing-home sales declined 2.6 percent to an annual level of 1.89 million in September but are 10.5 percent above a year ago. The median price in the South was $144,400, down 3.0 percent from September 2010. 

Existing-home sales in the West fell 8.8 percent to an annual pace of 1.14 million in September but are 10.7 percent higher than September 2010. The median price in the West was $207,400, which is 4.5 percent below a year ago. 

“The falloff in Western sales from a surge in August was expected because many lenders had lowered mortgage loan limits over concerns that sales wouldn’t close before the higher loan limits expired at the end of the September,” Yun said. “Given the concentration of higher cost housing in the West, particularly in California, many buyers were motivated to close in the months leading up to the changeover while they could still get low interest rates on conventional mortgages. Unless Congress reinstates the higher limits, the overall housing market recovery will be slower than it otherwise could be, and will hold back the broader economic recovery.” 

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
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Idaho Housing and Finance Association launches new lending option
by Jennifer Gonzalez
June 7,2010  

There’s a new mortgage option for first time homebuyers in Idaho. The Idaho Housing and Finance Association (IHFA) has just launched the Affordable Advantage Loan, through its IdaMortgage program. 

According to IHFA’s President and Executive Director Gerald Hunter, “It offers another affordable lending option for low to moderate income homebuyers across the state.” 

Some of the features of the Affordable Advantage Loan include a low cost, 30-year fixed interest rate, as little as $1,000 needed from the borrower to close, and no mortgage insurance required. 

“This IHFA exclusive financing option is a great tool for homebuyers as the housing market in Idaho continues its recovery,” Hunter said. 

Interested homeowners are able to check their eligibility status for an IdaMortgage loan by checking out www.IdaMortgage.com. If they qualify, they can be referred to a local lender who will assist with the loan process.
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-Deed for Lease: This program will allow those in danger of foreclosure to sign over their deed to Fannie Mae. Fannie Mae will then agree to a one year lease, allowing them to stay in their home. The lease may be extended month to month and transfers to a buyer. 

-Loan modification: Although the challenges that some homeowners faced have been chronicled here, loan modifications appear to be gaining traction. If you are exploring this option, be very careful about employing companies who claim to be experts in this area. To learn more go to: www.makinghomesaffordable.gov. For free counseling in Idaho send an e-mail to: home@nhsid.org or call Neighborhood Housing Services, (208) 343-4065 Est. 119. The Department of Housing and Urban Development also has a list of approved housing counselors. Visit: www.hud.gov and click on "Avoid Foreclosure". 

For those who do not qualify for any of the programs discussed here it could be argued that there is still incentive to buy based on the current market. Currently in Kootenai County our home values remain at 12 percent below last year. Because this trend has maintained the same for five consecutive months it appears that we are at the bottom of declining values. Current incentives and interest rates below 5 percent should cause continued absorption of existing inventory. Since housing prices are driven by supply and demand, we could see upward movement in prices. 

For a fresh perspective of the current real estate market in homes, land or commercial real estate, contact a Realtor. Visit www.cdarealtors.com for market statistics. 

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About the Spokane, Coeur d'Alene, Post Falls and Hayden Real Estate Market 

CALIFORNIANS MOVING IN Account for 35 percent of region's recent growth in population
Article in The Press 1/17/2007 

By Rick Thomas, Staff writer 

COEUR D'ALENE-- California bashers beware. They're still coming, in even greater numbers than in the past.
As recently as last summer, the perception that the Golden State was the top source of growth in North Idaho's population was a fallacy, ccording to Jim Stravens. This year's annual Inland Northwest Demographics report by JP Stravens Planning Associates, Inc. puts Californians as the top of the list, with 35 percent of the region's growth in population coming from that state.
" That's no surprise to us," Stravens said. "We haven't seen this trend for quite a while." Last year, Stravens said a third came from Washington State, a third from other Idaho counties and Montana and another third were
"made right here" as the result of local population growth.
Stravens' latest demographic report shows that in 2005, California led with 35 percent, followed by Washington State at 26 percent and surrounding states at 14 percent.
"We're only making 20 percent of population growth from people who are already here," Stravens said. "That's pretty phenomenal."
He estimates the population of Kootenai County by the end of 2007 at more than 140,000, and by 2010 above 167,000.
" They'll be older and wealthier", Stravens says.
"We're seeing more high-end type homes being constructed for older people," he said. "We're going to see a lot more of that kind of construction."
That means more age-restricted communities, an increase in seasonal population--10 percent of dwellings are now seasonal or occupied less than six months of the year and more wealthy buyers purchasing lots in high end developments like Black Rock, Gozzer Ranch and Powderhorn Bay, Stravens said.
However many of those buyers may not build homes for some time--as long as 10 years, if ever--because they're buying the property to get memberships to the exclusive golf clubs. "That's a trend we didn't see in the past," he said.
Housing for those with lower incomes will remain problematic, with about 62 percent of the county's homes now owner occupied and 28 percent rental units. Stravens said 20 percent of the population is now retired.
Housing construction peaked in 2005 and has since decreased by about half, but unemployment has remained low at 3.7 percent.
About 27.5 percent of households have incomes of less that $25,000, while the average is $56,430, which would qualify them for a home costing up to $210,000. People keep talking about low to moderate priced houses, Stravens said.
That's a misnomer, he said, because less than 25 percent would qualify.
The inventory of available homes grew by 1620 in 2006, but there are still a large number of subdivisions in the works, especially in the Post Falls area. "The number of units in Post Falls already platted is extremely high," Stravens said. That doesn't mean there's a lot of speculation, however. "Everybody wants to get their lots platted before there's a change," he said. "A lot of people complain about farmland being turned into housing. A lot of the farmers are platting their land to avoid (changes in policies)."
Even with housing construction off, there are homes being finished and enough commercial and industrial projects under way to keep the resident labor force busy, said Kathryn Tacke, regional labor economist for Idaho Commerce & Labor.
Unemployment has remained low in part because much of the labor force came in from other areas and the quantity is hard to track, she said.
There are just so many jobs, we can't seem to fill them all," Stravens said. "That appears to be the situation."
He said unemployment data doesn't take into consideration the self employed. "A lot of construction jobs fall through the crack," he said.
One trend that continues is the gradual shift in Kootenai County's center of population, which moved 1,333 feet west and slightly north since the last report as a result of growth in Post Falls and Rathdrum. Last year, it was at the intersection of Atlas Road and Hanley Ave.
In spite of a slowdown in demand for housing in the past year, Stravens doesn't see any likelihood of a retreat in prices now.
that the relative bargains in the region have been uncovered.
"Once you're discovered, it's impossible to go back," he said.  

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