I’ve gone and done it.  For most of you, this won’t make a difference whatsoever.  For me, it’s wonderful.  I’ve transitioned this blog from being on the free version of WordPress (a blog hosting platform) to my own hosting account.  This allows more freedom in what I can do with the blogsite, which is a great benefit for you, the reader.

So, please head on over to The North Idaho Real Estate Blog – it’s this blog and then some.  Essentially this blog has officially “ended” although I will keep it updated with cross-referenced posts now and then to remind everyone to change their bookmarks.  I will also be updating the weekly email that goes out to all of you so that you get the updates from the new blog.

Here is a link to our “September Real Estate Update“

This Newsletter is full of interesting and useful information perfect for buyers, sellers, homeowners, or renters.

This month’s issue includes topics such as:

“What the Housing and Economic Recovery Act of 2008 Means for You”;
“Moving Away From Heavy Gasoline Use”;
“New Fed Rules To Prevent Future Runs on Bad Loans”;
“Open The Doors And Buyers Shall Come — But Prepare First!”;
“Investor Report: Hidden Tax Pitfall”;
“Don’t Overlook The Garage When Getting Your Home Ready To Sell”;

Plus a roundup of August real estate activity as well as much more advice and information.

Enjoy. If you have any comments, let us know. Or, if you would like to see a certain topic covered in future months, let us know that too!

North Idaho housing starts follow national trend

Lower numbers mean fewer jobs in construction

COEUR d’ALENE — Construction in Kootenai County, as it is across the country, is slowing down.

“(Construction activity is) running about 10 percent below what it was last year,” Kathryn Tacke, Idaho Department of Labor, said of the Panhandle region. “That’s about 730 fewer jobs than we had last year in construction.”

Press article here.

This is absolutely the best news we’ve had in a while.

Why is it good news?  Because Kootenai County is just WEIRD.  Nationwide, approximately 10-12% of all homes sold are new construction.  That’s a national statistic that holds true in most areas.  Not in Kootenai County.  Here, roughly 26-29% of all homes sold are new construction.

Lower housing starts is excellent news for home owners.

Currently, the fact that almost 1 out of 3 homes sold is new construction is seriously hindering the ability of home owners to sell their homes.  When buyers can continue to get a brand new home, with more square footage than a resale offers, they’ll continue buying new construction.

With the slow down of new construction coming, it shows that there will be an upswing in resales. When?  I’m not omnicient so I can’t tell you that but, historically and cyclically it’s about 8-12 months after the housing start slow down.

“…I am really curious what you and your colleagues are saying about the current market conditions.  Are you still saying that things are stable?  Are things down?  Looking at the first ½ of 07 vs. 08, one might say things are down, however it is in my opinion a little too early to say.  Just curious what your take might be.  I have read a number of articles from your website/newsletter and so forth.  It is great information.  I am just fishing for some educated opinion…”

Definitely sales are down first 1/2 08 (by 25%) or so – and listing inventory is up by 7% or so.  With that said, that’s all encompassing – in other words, it’s everything in the MLS, not just Kootenai County.

What we are seeing is more instability (prices are all over the place) than ever before and this is usually indicative of a bottoming out – how long this instability lasts is the unknown.  It’s pretty much all dependent upon the credit markets and what that is going to settle down into being in the future.

The other factor we had this year was our incredible winter – this definitely affected sales significantly in fact – but knowing just how much that alone affected sales is impossible to determine.

We are seeing several things -

1. If sellers want to sell, they absolutely must price their home at the bottom rung of the price point with little to no competition.  If they don’t, they simply get lost in the sea of homes available and won’t get their home sold this season.

2. Buyers seem to think that they can make offers 10-20% below listing price on ‘best priced’ homes.  By this I mean that if a home is at the best price for it’s competition, buyers think that the seller is desperate or needs to sell (or whatever they are thinking) and they offer ridiculously low offers.  With sellers that are priced well, I can confidently advise how to counter back and whether to hold out or not.

3. Buyers are not separating our market from the markets that are seriously hit such as California, Phoenix, Las Vegas and Florida.  Buyers seem to think that since people are making offers at up to 40-60% off listing price and getting great deals, that must be the case everywhere.  Even REO’s aren’t going for more than 10% below market value in our area.

4. On the flip side, because so many of my sellers are from other parts of the country – I’m seeing more realistic expectations from sellers I work with that live out of state than I do from sellers that live locally.  The sellers from out of state are innundated with their local markets downward spiral and actually listen when I explain our market here.

5. On the other side of the above, I have a couple of sellers that are unrealistically freaked out – one seller brought over $30,000 to the table to close his property only because he was nervous about the market (out of state seller).  That $30,000 would have sustained him with a tenant for 4-6 years (it is a very strong rental market in our area) – well beyond our current market conditions.  My honest opinion, if you have to bring money to the table – sit down and figure out how long that money would last should you rent it out – even at a negative cash flow.  Then determine if that is long enough to get you into a better time of year to sell or even a better year to sell.

Here is a link to our “July Real Estate Update“

This Newsletter is full of interesting and useful information perfect for buyers, sellers, homeowners, or renters.

This month’s issue includes topics such as:

“Sell Faster When You Understand The Buyers Mindset”;
“What You Should Know About A Buyer’s Market”;
“Investor Report: Section 1031″;
“Paint The Perfect Sale”;
“Grill Burgers, Not Your Home”;
“Home Sales May Rise Modestly Before Upturn in Second Half Of 2008″

Plus a roundup of June real estate activity as well as much more advice and information.

Enjoy. If you have any comments, let us know. Or, if you would like to see a certain topic covered in future months, let us know that too!

This project isn’t so much ‘in Rathdrum’ as it is just north of major residential areas of Post Falls – ie, it’s between Idaho Road and Greensferry Road and south of Burlington Road – this area is just north of Fieldstone (a major residential sub-division in Post Falls).  Rathdrum ‘proper’ is typically considered areas east of Hwy 41,  this is west of Hwy 41 by about a 1/2 mile.

In other words, this location is very central to all areas including Spokane, Post Falls, Coeur d’Alene and a somewhat easy drive to Sandpoint.

“900 residential units as well as commercial and industrial properties and land for parks and schools on 302 acres of property.”

Article here.

Here is a link to our “June Real Estate Update“

This Newsletter is full of interesting and useful information perfect for buyers, sellers, homeowners, or renters.

This month’s issue includes topics such as:

“Moving Up? What You Need to Consider to Accommodate Your Growing Family”;
“How To Get the Goods On Regreening”;
“ID Theft Hits Home”;
“Keep Cool Starting From The Top”;
“Avoiding Home-Based Business Blunders”;
“Tax Rebate Uses For Sellers”;

Plus a roundup of April real estate activity as well as much more advice and information.

Enjoy. If you have any comments, let us know. Or, if you would like to see a certain topic covered in future months, let us know that too!

Yes, I know people are worked up about this – but let’s be realistic. Has it really declined? I don’t agree, no matter what the county says on paper. Here’s why . . .

First and foremost, the county was over-valuating properties in 2007. Seriously over-valuating them. I’m going to use somewhat specific examples (and I have hundreds):

Woodbridge sub-division – A property in that neighborhood was valued by the county at $188,000. I thought that was high because I knew for a fact that the home wouldn’t sell for more than $180,000 ($182,000 given the right buyer). I got my comparables from the same place the county was looking, the MLS. The difference in what I found and what they found? It appears that the county was looking at ACTIVE listings, not sold and pending listings. Big mistake. Active listings provide no concrete idea of value, only what has sold shows value, especially in this tough market.

I’ll go on. The Landings at Waterford – A property in that neighborhood was valued by the county at $175,000. Exact same floor plans were selling for $160,000 – $163,000 during the same time period (although there were plenty of over-priced homes on the market for the county to get perceived value from).

The county determines that the value of your property is based upon its value on January 1st. If values rise or fall thereafter, that value doesn’t change until the following year. Problem is, the examples given above don’t support this method. The county seriously over-valued properties and now they are expecting the community to believe that values have dropped.

Looks like that $500 million in value “drop” is approximately 3-4% of the total value of the county. Hum, from the examples above, that sounds about right.

Growth in North Idaho has never stopped, despite the perception of the market. It’s just slowed down… ‘cept it looks like it’s starting to pick up again. Post Falls Idaho is growing even faster than other North Idaho towns, mainly because Post Falls has more land available for growth. Coeur d’Alene has pretty much used up the land within their city boundaries and since more and more people desire to live in North Idaho, the growth has to go somewhere.

“The preliminary subdivision plan allows for an expansion of commercial development that will incorporate and spread the atmosphere created by the Tullamore development across the street,” the project description states. “The project includes a retail center consisting of multiple building pads/lots in the area closest to Highway 41, and three parcels located to the east of the retail center which will be reserved for future commercial/office/retail development.”

Article here.

The Idaho Housing and Finance Association is cranking out mortgage loans at a furious rate in Idaho, with about 10 percent being made in Kootenai County as homebuyers rush to take advantage of dropping prices and interest rates that remain low.

For once the media isn’t kidding – buyers are rushing to take advantage of low interest rates and excellent home prices.

In the first four months of 2008, loans are within a couple dozen of what were created in all of 2006 in the county, with most going to the category known as “workforce” or “affordable” housing, priced at $200,000 and less. In 2007, IHFA made 385 loans totaling $63.6 million in Kootenai County. This year 140 loans totaling $23.7 million were made through April, compared to 162 loans totaling $25 million in all of 2006.

How’s that for buyers out in full force?

The $200,000 and under price range is going like hot cakes.  It’s essentially a balanced market (not quite a sellers market because of the intense amount of inventory, but also not a ridiculous buyers market where they can offer 10% below market value and get it).

IHFA mortgage rates are as low as 5.39 percent, and as much as 6 percent depending on borrower qualifications. A credit score of at least 620 and as much as 700 is required to qualify. IHFA has maintained an excellent portfolio of loans, with a delinquency rate of less than 5 percent and foreclosure rate of less than 1 percent, Hunter said.

It is very important that buyers keep their credit in good shape and save money away for a down payment.  There are no longer programs available for bad credit buyers.

Do you want to know if you qualify for an IFHA mortgage, or any mortgage? We highly recommend Veronica Garnsey with First Horizon Home Loans.  She enjoys working with buyers and you will enjoy working with her.  She’s got a tremendous amount of experience and will help you find the best program to meet your needs, not the one that enriches her pocket book.  Just give her a call today: 208.661.3409 – just tell her Christina sent you (no, I don’t get any money or gifts – it’s just nice that she knows I’m referring her because she’s done such a great job for us).

Article here.