Is the Market SHIFT starting to show in Kootenai County?
Average Home Prices
Average Home prices dropped from June 2022 to July 2022 in Coeur d’Alene, Silver Valley, and Hayden.
However, the price drop was only marginally different than what we saw between June and July last year.
Surprisingly, the average home value actually increased in Post Falls.
Thus, it is still too close to call based on property values.
Other Indicators:
-New Construction: For the past 2 years, builders have been so swamped that many stopped offering custom homes where buyers chose their own finishes. “Spec” pre-built homes were the norm. Now, we are starting to see the return of custom homes.
-Bidding Wars: Bidding wars are cooling off. Sellers are seeing less competition for their homes, and buyers are finding better opportunities to get the home of their dreams.
-Price Adjustments: For the past few years, many sellers and agents have opted to list their properties for more than market value – and they’d still get showings. Not any more. Market value is still high, but now there are enough homes on the market that overpriced homes are being ignored. We’re seeing a lot of price changes where overpriced homes are dropping to the correct value.
– Increased Interest Rates: Interest rates on mortgages are increasing, causing some buyers to rethink buying a home. However, rental prices are rising as well, so many savvy buyers are still in the market – looking to get a mortgage just to lock in their rate for the next 3 decades.
The “Desirablity” Factor
Even as politics and economies change, the desirability of North Idaho has not changed. As long as people view it as a better place to live than their home states, they will continue to buy homes here. The worse things get economically and politically, the more of a “Land of Opportunity” North Idaho appears to be.
Because of this, it is likely that our local real estate market will react differently than other regions around the country. So, while we still prepare for a major shift (because we Idahoans like to be ‘prepared!’), it is more likely that the market will decrease a bit and “correct itself,” and give buyers a bit of relief, without ever bottoming out the real estate values.
Fortune favors the Prepared… Don’t be afraid to reach for the home of your dreams. Just prepare, and move forward with wisdom. Remember: the market is always good for someone. Learn how to make the market – even a shifting market like this one!- work for you!
If you want to understand the market, and the possible ways that selling your specific home might be impacted over the next few months, please feel free to reach out! I’m here for you!
