APRIL 2021

Market Update April 2021

“House prices nationwide recorded the
largest annual and quarterly increase in the
history of the FHFA HPI. Low mortgage
rates, pent up demand from homebuyers,
and a limited housing supply propelled
every region of the country to experience
faster growth in 2020 compared to a year
ago despite the pandemic.”

Dr. Lynn Fisher

Deputy Director of FHFA's Division
of Research and Statistics

YOY Change in Housing Inventory

realtor.co
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Regarding Cash-Out Refinances:

2020 Was Nothing Like 2006

89%

$7.3T 2006 2020

$4.6T

33% $321B 7%
$153B 2%

Tappable Equity % of Cash Out Total Cashed % of Tappable

in Trillons Refis Out in billions Equity

Black Knight, Freddie Mac, KCM Research

Tappable Equity* of U.S. Mortgage Holders Surging

$8,000 in billions *Tappable Equity - the amount available for
homeowners to access before hitting
$7,000 a maximum 80% combined LTV
$6,000 (Loan-to-Value Ratio)
$5,000

$4,000

$3,000

$2,000

$1,000

$0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Black Knight

321

Home Equity
Cashed-Out

by refinance in billions

153

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q1-Q3

Freddie Mac

Default Risk in the Mortgage Market (1999-2020)

Product Risk

Reasonable Lending Standard

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Urban Institute

Annual Home Price Appreciation

12.5% 9.2%
11.4%
6.4%
8.5% 8.7% 4.8% 4.7%

Average Annual Appreciation Average Annual Appreciation

10.3% 6.3%

2002 2003 2004 2005 2017 2018 2019 2020

CoreLogic, Black Knight

American Home Equity Skyrockets

$26,300 $204,000

average gain in equity current average equity
of mortgaged homes of mortgaged homes

38.2% 16.2%

of all homes are owned increase in equity
‘free and clear’ totaling over $1.5 trillion

American Community Survey, CoreLogic

YOY Change in Home Equity

CoreLogic

Mortgage Rate Projections

Quarter Freddie Fannie MBA NAR Average
Mac Mae of All Four

2021 2Q 2.9 3.1 3.2 3.0 3.05%

2021 3Q 3.0 3.1 3.4 3.0 3.10%

2021 4Q 3.0 3.2 3.6 3.1 3.22%

2022 1Q 3.1 3.3 3.7 3.2 3.32%

Residential Sales Comparison Year over Year 585
All MLS 590

782 691

617

510 597
545
461
403 448
366
586
319
324

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

*Data provided by CDA MLS 2016 Sold 2017 Sold 2018 Sold 2019 Sold 2020 Sold 2021 Sold

Residential Snap Shot

January 1st, 2021-March 31st, 2021 Residential

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

Active Listings November 1st, 2018 – January 31, 2019 195
Homes Sold/Closed YTD 403 Active Listings 388 Active Listings 107
Avg Days on Market
Median Sales Price 298 Homes Sold/Closed YTD 269 Homes Sold/Closed YTD 73
Avg Sales Price $550,000
SP/OLP 00 Avg Days on Market 82 Avg Days on Market $740,000

$485,000 Median Sales Price $415,000 Median Sales Price 102%

$584,000 Avg Sales Price $474,000 Avg Sales Price

100% SP/OLP 104% SP/OLP

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

Active Listings 162 Active Listings 21 Active Listings 55
Homes Sold/Closed YTD 140 Homes Sold/Closed YTD 7 Homes Sold/Closed YTD 32
Avg Days on Market 151 Avg Days on Market Avg Days on Market 108
Median Sales Price $394,000 Median Sales Price 41 Median Sales Price $402,000
Avg Sales Price $477,000 Avg Sales Price $287,000 Avg Sales Price $433,000
SP/OLP 102% SP/OLP $472,000 SP/OLP 101%

104%

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

Active Listings 24 Active Listings 102 Active Listings 1,346
Homes Sold/Closed YTD 11 Homes Sold/Closed YTD 80 Homes Sold/Closed YTD 909
Avg Days on Market 81 Avg Days on Market 81 Avg Days on Market 100
Median Sales Price $502,000 Median Sales Price Median Sales Price
Avg Sales Price $573,000 Avg Sales Price $203,000 Avg Sales Price $450,000
SP/OLP 103% SP/OLP $213,000 SP/OLP $579,000

94% 101%

*Data provided by Cda MLS

Kootenai County 1st Qtr. Year over Year 628
Average Sold Prices

732

597 606

399 -17% 285 247 323
231 141
49% Multi Family 94%
23% 75%
Single Family Condos/townhomes
Lots & Land Manufactured

1st Qtr 2020 1st Qtr 2021

CdA 1st Qtr. Year over Year
Average Sold Prices

578 502 258 236 124 683
380 338 86 397
-19%
56% 49% 44% 72%
Lots & Land
Single Family Multi Family Manufactured Condos/townhomes

1st Qtr 2020 1st Qtr 2021

Rathdrum 1st Qtr. Year over Year
Average Sold Prices

909

504 334172% 344 432 284
397 262 183
Multi Family 165
27% -34% 55%
162%
Single Family Lots & Land Condos/townhomes
Manufactured

1st Qtr 2020 1st Qtr 2021

Single Family 1st Qtr. Year over Year
Average Sold Prices

599 202 265 411
451 177 164 280

33% 14% 62% 47%

Bonner County Shoshone Benewah Boundary

1st Qtr 2020 1st Qtr 2021

DOM per Price Point
Kootenai County Single Family

172

117 120 110 105 105
+12% 90
82 +6%
-26% +16% 72 75 +42%
-43%
-46% -3% -17% -54%

250-349 350-399 400-449 450-499 500-599 600-699 700-799 800-1 million 1-1.5 million 1.5 million +

DOM per Price Point
Kootenai County Single Family

Resale Only

98

68 43 50 42 44 53 56
+5% 45
-38% -15%
250-349 350-399 400-449 39 -43%% -7%

-52% -74%
450-499
-68% -73%

-53%

500-599 600-699 700-799 800-1 million 1-1.5 million 1.5 million +

A few talking points on why we are NOT headed towards a bubble

In the mid-2000s, loose mortgage-lending standards enabled borrowers with poor credit
histories to purchase homes beyond their means…

…sometimes with mortgages that required low payments in the early years of the
loan…

Homeowners are not doing re fi cash outs and spending it on frivolous items

Homeowners have historic equity levels, the risk of foreclosure or short sales is minimal