Coeur d’Alene Market Update Summer 2011

Many people have been asking my opinion about what is going to happen with the North Idaho real estate market in the next few years.  I feel the same way that I have for the last couple years.  We will continue to see a slow drop in prices until inventory levels drop to normal.  At that point I am hopeful that we see slow, healthy appreciation.  My prediction is that in North Idaho, it will probably be a couple years before we see this turn.  It has been a crazy year with our country almost hitting its debt ceiling, crazy stock market volatility, and biggest of all, my wedding!  That is right….I am officially off of the market and am happily married to the girl of my dreams.  The wedding has kept me plenty busy over the summer and I am looking forward to spending some quality time back at the office, studying the real estate market.  Once things here in Coeur d’Alene slow down, we will take some time to honeymoon down in Mexico.  I am truly a lucky man.  Now, back to our real estate market…

As I have been saying we are slowly getting closer to equilibrium in the market.  Prices have continued to drop and will probably continue to do so for the next year or so.  We are starting to see a bottom in some of the lower end markets.  Recently I have had buyers offer 5% over asking price only to have their offer rejected because someone else made an offer for 10% over asking price!  This shows that there is high demand out there, but buyers are waiting for great deals.  Most of the buyer activity has been for homes under $200,000 that are priced below market value.  With interest rates so low, you can leverage out a home in this price range and still make monthly profits.  Today’s real estate market is a dream for investors!  There is a lot of truth to the saying, “You make your money when you buy, not when you sell.”  Higher end markets including waterfront homes and large estate properties will take a while to catch up.  There is still a large excess of inventory, and until it all gets bought up, foreclosed on, or taken off the market, prices will continue to drop.  This creates some amazing opportunities to make money.  If you keep the mindset of, “You make your money when you buy”, this is the best market we have ever seen!

If you have any questions or comments about Coeur d’Alene’s Real Estate Market, or North Idaho’s Real Estate Market feel free to call or email anytime. 

Jared McFarland

208-771-1454