What's going on in the North Idaho Market.

Well folks, it looks like our market is picking up earlier than ever and it's starting to gain momentum again.  As of December 31st there were 2,853 homes on the market.  As of January 6th, we dropped to 2,552.  We've been consistently inching upwards and as of today, January 15th we are at 2,632.  Doesn't look like the inventory levels are going to get much lower.  This is our new baseline.

Buyers have also come out of the woodwork.  It almost seemed like we couldn't sell seed to a farmer in November and December.  Not sure what side of the bed people are sleeping in in January, but it's the side of 'I want to buy, and now'.

With the new predictions released by Fiserv, Coeur d'Alene Idaho is looking to gather a 7.3% appreciation for 2007.  My guess was 8%.  That's a solid, steady appreciation level.  Coupled with the tight, very tight, rental market (less than 4% for our company, 6% for the area), the insanely tight employment market (less than 3% unemployment rate) and the significant increase in excavation and building in the commercial/industrial sector, there is a lot of friction.  Key point being, something has to pop.  We need an influx of people to fill the hundreds of new jobs being created this year.  We need more rental properties for the new people, and an estimated 30% of renters this year will become home owners.  We need more homes!

We shall see what happens and how it plays out.  For now, the friction is tight and we are watching all sides to see what's going to give first.