It's that time again: North Idaho Market Update

Points of interest:

• Overall Available Inventory
• Our Team's Production 2007 vs. 2006
• North Idaho Volume 2007 vs. 2006
• Market Analysis
  

Overall Available Inventory - February 18th

• 5,419 Total Listings - up 400+ from January
  
• 2,859 Residential Listings - up 150+ from January
  
• 94 Multifamily Listings - up 20+ from January
  
• 2,018 Vacant Land Listings - up 180+ from January
• 394 Commercial Listings - up 30+ from January
• 14 Farm & Ranch Listings - down 1 from January
• 40 Business Opportunities - no difference from January
  

Listings are rising, fairly fast for the time of year.  People are getting cabin fever and are ready to move.  While overall listings are up, buyers are definitely out and about.  We'll see the results of these purchases over the next several months as more and more properties close and record. 

Our Team's Production - January 2007 vs. January 2006

• We've written 300% more contracts
• We've taken 50% more listings
  

Buyers have been coming out of the woodwork.  They are ready to buy, as evidenced by our significant increase in written contracts.  Also, when it comes to listings, I am a strong advocate of not taking an over priced listing, most especially now in a transitional market.  We've significantly increased the number of listings we've taken, and these listings have been selling faster, at higher list/sell prices than ever before. 

North Idaho Volume - January 2007 vs. January 2006

• 315 Properties closed and recorded January 2006
• 178 Properties closed and recorded in January 2007
  

This looks scary on the surface, but let's analyze it.  The properties that closed in January 2006 were a result of the insane amount of contracts written in the summer, fall and winter of 2005.  New construction that was finally completed - and, along with it our awesome appreciation from 2005.  While our closed and recorded contracts in January were down, there are a plethora of pending contracts.  As I mentioned before, the next several months will show a significant increase in closed and recorded sales from these contracts.

Market Analysis

I'm not sure if anyone else is noticing this or not... our market is TIGHT right now. 

• There has been a phenomenal increase in commercial construction, new business openings, big box stores coming in, etc. 
  
• There is a strong tightening of the rental market: our management company is running a 1.6% vacancy rate and we have a waiting list of tenants (we manage hundreds of units), I've noticed a reduction in available units overall on the market
• Our area unemployment rate is hovering at 3%. 
  
• There is major friction and something is going to have to give. 
  
• We have a lot of people moving into the area, more and more jobs are being posted despite the incoming progression. 
  
• Rentals are becoming few and far between. 
  
• More major companies and businesses are slated to open their doors over the next 12-18 months.
• There is a lot of room for rental prices to rise before tenants are inticed to buy vs. rent
• The overall household income has risen from $52k in 2004 to $68k in 2006, allowing more and more people to afford the 2005 run up in housing prices
• Appreciation held steady at 14% in 2006, originally estimated at 12,8% by Fiserv
• Estimated appreciation rate for 2007 is 7.8% (Fiserv) and 8-9% by our research