April_2022 (1)

Market Update
April 2022

Residential Snap Shot

January 1st, 2022- March 31st, 2022 Residential

Area 01 CdA Area Snap Shot 02 Post Falls Area 03 Hayden

Active Listings November 1st, 2018 – January 31, 2019 189
Homes Sold/Closed YTD 352 Active Listings 334 Active Listings 120
Avg Days on Market 69
Median Sales Price 233 Homes Sold/Closed YTD 274 Homes Sold/Closed YTD $600,000
Avg Sales Price $758,000
SP/OLP 74 Avg Days on Market 73 Avg Days on Market 97%
$575,000 Median Sales Price $513,000 Median Sales Price
$642,000 Avg Sales Price $557,000 Avg Sales Price
SP/OLP SP/OLP
99% 99%

Area 04 Rathdrum/Twin Lakes Area 04a Hauser Lake Area 05 Athol/Spirit Lake NW Kootenai Co

Active Listings 172 Active Listings 23 Active Listings 59
Homes Sold/Closed YTD 15 Homes Sold/Closed YTD 35
Homes Sold/Closed YTD 100 Avg Days on Market 115 Avg Days on Market 99
Avg Days on Market 83 Median Sales Price $725,000 Median Sales Price $550,000
Median Sales Price Avg Sales Price $693,000 Avg Sales Price $599,000
$500,000 SP/OLP 102% SP/OLP 97%
Avg Sales Price
$577,000
SP/OLP
99%

Area Athol/Bayview 06 NE Kootenai Co Area 12 Silver Valley Area All Kootenai Co

Active Listings 36 Active Listings 68 Active Listings 1,268
Homes Sold/Closed YTD 17 Homes Sold/Closed YTD 50 Homes Sold/Closed YTD 794
Avg Days on Market 73 Avg Days on Market 67 Avg Days on Market 76
Median Sales Price $685,000 Median Sales Price $295,000 Median Sales Price
Avg Sales Price $833,000 Avg Sales Price $290,000 Avg Sales Price $539,000
SP/OLP 94% SP/OLP 98% SP/OLP $655,000

98%

*Data provided by Cda MLS

Residential Sales Comparison Year over Year
All MLS

617 691 590 600
597 585 508

461 546 586

431

366341 332204

Jan Feb March April May June July Aug Sept Oct Nov Dec

2017 Sold 2018 Sold 2019 Sold 2020 Sold 2021 Sold 2022 Sold

*Data provided by CDA MLS

Kootenai County 1st Qtr. Year over Year
2021 vs 2022

Average Sold Prices

712 714 771
597 606 649

24% 21% 438 228 247 19%
296
6%
48%
Single Family Multi Family Manufactured Condos/townhomes
Lots & Land







History suggests that when rates rise, there is an
initial bump in home prices as many move quickly to
buy a home before rates increase further. But after
that period, home prices slow. Freddie Mac analysis
shows that a 1% increase in mortgage rates results in
home price appreciation that is 4 percentage points
lower. For instance, a 1% increase in mortgage rates
would change home price growth from 11% to 7%.

- Freddie Mac

Impact of Rising Rates on Home Prices

Changes when mortgage rates rise by more than 1%

Start Date End Date Months Increase Home Prices
14 2.38% +3%
Oct 1993 Dec 1994 8 1.2% +2%
19 1.81% +13%
Jan 1996 Sept 1996 12 1.06% +13%
13 1.18% +7%
Oct 1998 May 2000 13 1.11% +11%
13 1.46% +8%
June 2003 June 2004
Source: Freddie Mac
June 2005 July 2006

Nov 2012 Dec 2013

Average

Impact of Rising Rates on Housing

Changes when mortgage rates rise by more than 1%

Start Date End Date Months Increase Home Prices Home Sales
+3% -11%
Oct 1993 Dec 1994 14 2.38% +2% -2%
+13% -2%
Jan 1996 Sept 1996 8 1.2% +13% 2%
+7% -14%
Oct 1998 May 2000 19 1.81% +11% -2%
+8% -5%
June 2003 June 2004 12 1.06%
Source: Freddie Mac
June 2005 July 2006 13 1.18%

Nov 2012 Dec 2013 13 1.11%

Average 13 1.46%

Impact of Rising Rates on Housing

Changes when mortgage rates rise by more than 1%

Dates Months Increase Final Rate Home Prices Home Months
8.23% +2% Sales Inventory
1/96-9/96 8 1.2% 8.52% +13% -2%
19 1.81% 6.29% +13% N/A
10/98- 12 1.06% -2%
5/20 N/A
2%
6/03-6/04 5

6/05-7/06 13 1.18% 6.76% +7% -14% 4.5
13 1.11% 4.46% +11%
11/12- 13 1.27% 6.85% +9% -2% 4.8
12/13
-4% 4.8
Average
Source: Freddie Mac

Rising Inflation Means Homebuyers Will Be Looking for Homes That
Are $40,000 Cheaper

Homeownership: a Hedge Against Inflation

Home Price Appreciation vs. Consumer Price Increases over the Decades

Inflation Rate Home Price Appreciation 18%

9.9% 9.2%

7.1% 6.8%

5.6% 5.5% 4.9%

4% 2.6% 2.3%
3%

1.8% 1.4%

1970s 1980s 1990s 2000s 2010s 2020 2021

Source: NAR, CoreLogic, Consumer Price Index



Buyer Traffic Index

February 2022

Source: NAR

Single Family Homes

More New Listings than Active Listings

Active and New Listings by Month

616 621 Active Listings New Listings
516 463
612 483
554 409 376 370 434
326 382
449
381 288

Aug 2021 Sept Oct Nov Dec Jan 2022 Feb Mar

Source: realtor.com

Indicators of a Market Shift? 298

310

195

155 90 102
69 April YTD
59
Jan Feb March

Price Reductions New Listings

Talking Points …..

• As interest rates rise historically we see a few things shift in the market
• Home values still continue to rise, but at a slower rate
• Homes sales drop, Less Inventory to sell and still rising prices
• MOI starts to creep up, what is on the market takes longer to sell.

• Prepare our Sellers it will take longer to sell and may not be as many offers
• Price War and the Beauty Contest is making a comeback
• Learn your Value Proposition, and be able to explain it clearly

Contact Us with Any Questions

With the local real estate market changing in 2022, you may have questions on
how this will effect you.

Inflation will force construction costs higher which will put upward pressure on
new home prices and home resale prices. Low inventory of homes for sale will

continue to also put upward pressure on home prices.

Inventory of homes for sale will slowly rise as interest rates go up. Net effect,
home price appreciate will moderate as interest rates will rise.

Mike McNamara, Realtor
ABR, CRS, GRI, CNE, e-PRO
Windermere Coeur d'Alene Realty

Cell 208-660-6320
Fax 888-640-7771
[email protected]
http://www.HomesCDA.com