October_2021

Market
Update

October
2021

In the News….

• CRMLS, the largest MLS in the country, announced the relaunch of their
integrated “submit offer” feature. (CA Regional MLS)

• Redfin allows buyers to tour homes without an agent, the Brokerage partners with ADT
to expand its Direct Access home tour feature. (Vacant Home Feature/Homes Owned by Redfin)

• Realtors still get most of their leads from Facebook
• Zillow’s purchase of Showing Time closes ($500 Million)
• For the second month in a row, national housing affordability improved in August,

according to the latest National Association of Realtors housing affordability index
report

Active Monthly Listing Count Peaks 2017-2019

1500000 2017 2018 2019 2018
1450000 Sept
1400000 Feb Mar Apr May Jun
1350000 2017 2019
1300000 Aug Oct
1250000
1200000
1150000
1100000
1050000
1000000

Jan Jul Aug Sept Oct Nov Dec

realtor.com

Kootenai County Single Family

For Sale Per Year

1600

1400

1200

1000

800

600 745
291
400

200 March April May June July August Septmeber October November December
2021
103

0
January February

2017 2018 2019 2020

* Data compiled from Tredgraphix as of 10/12/2021

Seller Traffic Index

NAR

Price Appreciation – YOY, Q2 2021

FHFA

3 reasons listings may continue to increase
throughout this fall and into the winter

1. Pent-up Selling Demand - Homeowners may be more
comfortable putting their homes on the market as more and
more Americans are getting vaccinated.

2. New Construction Is Starting To Take Off – There will be more
options for current homeowners to consider when they sell. The lack of
options has slowed many potential sellers in the past.

3. The End of Forbearance Will Create New Listings – The end of
the forbearance program will not lead to a wave of foreclosures
for several reasons. Instead of going to foreclosure, homeowners
will be able to sell their homes and have enough equity to more
than cover the expenses of selling.

“My sense is the Case-Shiller
National annual growth rate of
19.7% is probably close to a
peak, and that year-over-year
price increases will slow later
this year.”

Bill McBride

Calculated Risk

$111,285 potential growth in household wealth over the next
five years based solely on increased home equity
if you purchased a $350K home in January 2021

$445,471 $461,285

$413,851 $430,157

$391,090

$350,000

Based on price appreciation projected by the Home Price Expectation Survey

January 2021 January 2022 January 2023 January 2024 January 2025 January 2026

Home Price Expectation Survey 2021 Q3

$171,084 *Kootenai County Single Family

$520,643 $596,084

$486,582

$454,750

$425,000

Based on price appreciation projected of a 7% CAGR

January 2021 January 2022 January 2023 January 2024 January 2025

Mortgage Rate Projections

Quarter Freddie Fannie MBA NAR Average
Mac Mae of All Four
3.1
2021 4Q 3.4 2.9 3.3 3.18%

2022 1Q 3.5 3.0 3.4 3.4 3.33%

2022 2Q 3.6 3.1 3.6 3.5 3.45%

2022 3Q 3.7 3.1 3.8 3.6 3.55%

What some experts say……

“Closings are set to decline roughly 10% year over year

in 2nd half of 2021 and home price appreciation is on the

cusp of flipping to a decelerating trend.” Ivy Zelman
Zelman & Associates

But then this…..

Mortgage applications to purchase a home jumped 7% last
week from the previous week. . . . That is the highest level
since April of this year. ” Fannie Mae

Residential Snap Shot
January 1st, 2021- September 30th, 2021

Area 01 CdA Area 02 Post Falls Area 03 Hayden

Active Listings 1,315 Active Listings 1,254 Active Listings 713
Homes Sold/Closed YTD 1,026 Homes Sold/Closed YTD 996 Homes Sold/Closed YTD 511
Avg Days on Market Avg Days on Market 75 Avg Days on Market
Median Sales Price 71 Median Sales Price Median Sales Price 70
Avg Sales Price $500,000 Avg Sales Price $437,000 Avg Sales Price $553,000
SP/OLP $574,000 SP/OLP $489,000 SP/OLP $692,000

100% 102% 97%

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

Active Listings 594 Active Listings 81 Active Listings 212
Homes Sold/Closed YTD 493 Homes Sold/Closed YTD 46 Homes Sold/Closed YTD 163
Avg Days on Market 109 Avg Days on Market 95 Avg Days on Market
Median Sales Price $440,000 Median Sales Price $698,000 Median Sales Price 86
Avg Sales Price $510,000 Avg Sales Price $667,000 Avg Sales Price $485,000
SP/OLP 100% SP/OLP 101% SP/OLP $532,000

100%

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

Active Listings 88 Active Listings 373 Active Listings 4,578
Homes Sold/Closed YTD 51 Homes Sold/Closed YTD 280 Homes Sold/Closed YTD 3,490
Avg Days on Market 60 Avg Days on Market Avg Days on Market
Median Sales Price $622,000 Median Sales Price 64 Median Sales Price 79
Avg Sales Price $680,000 Avg Sales Price $240,000 Avg Sales Price $485,000
SP/OLP 97% SP/OLP $254,000 SP/OLP $624,000

97% 98%

*Data provided by Cda MLS

Residential Sales Comparison Year over Year 585 590
All MLS

782 691

662 642

617 597 588 597
545
510 546 545

403 461 448
366 586

319
324

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

2016 Sold 2017 Sold 2018 Sold 2019 Sold 2020 Sold 2021 Sold

*Data provided by CDA MLS

3rd Quarter Median Sales Price Comparison
2020 vs 2021 YTD
Re-Sale Only

Kootenai County Single family

799,000

560,000

348,000 482,500 +43%

+39%

Less than 2 Ac More Than 2 Ac

2020 2021

3rd Quarter Median Sales Price Comparison

2020 vs 2021 YTD
Re-Sale

545,000 Kootenai County Multi family & Condos

+53% 466,000

355,000

286,000 +63%

Multi Family Condo

2020 2021

3rd Quarter Median Sales Price Comparison

2020 vs 2021 YTD
Re-Sale

Kootenai County

1,370,000

850,000 800,000

+61% 580,000 +38%

Waterfront Sec Waterfront

2020 2021

3rd Quarter Median Sales Price Comparison

2020 vs 2021 YTD
Re-Sale

Kootenai County Land 263,000

+54%

170,000

90,909 118,500

+30%

Vacant Lot Land 1-10 Acres

2020 2021

3rd Quarter Median Sales Price Comparison

2020 vs 2021 YTD
Re-Sale

Kootenai County 495,000

350,000 322,000 +54%

225,000 +56%

Land 10Ac + Manuf over 2 Ac

2020 2021

When is the Market Going to CRASH?.....

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

The current market can absorb any listings coming to the market

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

Most of the 1.86M in forbearance have enough equity to sell their home

Talking Points…

Homes for sale in Kootenai County have increased by more than 20% compared to this time last year

Our pending sales have slowed just a bit and are down about 3% from this same time last year
Average Days on Market is increasing slightly month over month

Bonner County sales are down slightly by about 5%

Inventory is up a bit by about 7%
Average sales prices are up 48%, $602,841

Boundary County sales are up 24%

Inventory is up 18%
Average sales prices are up 31%, $422,905

Shoshone County sales are up 14%

Inventory is up 14%
Average sales prices are up 39%, $253,392

Benewah County sales are down 2%

Inventory is up 5%
Average sales prices are up 23%, $301,824