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Video Script:
This November caught a lot of people off guard.
Weather wise, it was the coldest November in recorded history in Coeur d’Alene. The average high last month was only 35 degrees, which was about 10 degrees below normal. The second coldest November was way back in 1919.
Last month was also the fourth snowiest November in history, with a total of 26.2 inches of snow. Half of last month’s snow, 13.1 inches, came Nov. 30. And with those below freezing temps it means the snow does not melt, like it typically does in November.
In many ways the frigid and frozen weather of November, also symbolizes the Real Estate market here in the North Idaho area…frigid and frozen.
When it came to new homes hitting the market in November…they didn’t!
November saw just 300 new listings come onto the market hear in North Idaho. This is certainly the fewest homes to come onto the market over the past five years. You have to go back to 2013 to find a November with fewer homes being listed.
Sellers are frozen in their North Idaho homes for a couple reasons:
- Few want to leave North Idaho, although after the start to this winter, there may be a few looking for property in Florida.
- Most people with mortgages have rates under 4% and if they sold their current home, they would be jumping into the market as buyers, where inventory is tight, prices are higher, and mortgage rates are above 6.5%
Keep in mind that the real estate market cannot see significant price drops without a significant amount of homes adding to the supply.
Rumors of foreclosures, vacation homes, and homes belonging to out-of-staters who work from home flooding the supply of homes…are just that at this point…rumors. Facts tell us there are fewer homes coming onto the market, not more!
Another sector of the North Idaho Market that is frozen, is buyer demand.
Fewer and fewer buyers were looking for homes in November. The amount of homes sold, represented by Closed Sales, were down 43% compared to 2021, and were at their lowest level since 2014.
This decrease in buyers is healthy for our market, in my opinion.
It is healthy because it means inventory can replenish back to normal levels over time. We are seeing that happen over the second half of 2022, to where inventory in November was almost twice what it was in November of 2021.
However, while inventory was significantly higher than November of last year, it was still the third lowest November inventory of all-time!
I must also note, that while inventory is increasing, it is only increasing because the less desirable and/or overpriced homes are sitting on the market longer.
Very much like a car lot, the models that stay on the lot are the models nobody wants, or can afford.
So, while there are more homes on the market, they are not necessarily what most buyers are seeking.
That brings us to the final point…home prices in November
As we detailed previously, both the Seller and Buyer sides of the North Idaho Housing Market are basically frozen.
As a result, we are seeing the same thing with prices…they are FROZEN
The median priced home in November was 512K, the same price it was in November 2021.
The good news is that prices have stopped going up. The bad news is, if you are a buyer, or seller, prices are still at 2021 levels.
So let me close with where I see the current market:
To my buyers out there… the desirable homes are still selling fast and near 2021 prices hear in North Idaho. As buyers you can expect less competition, but you are NOT in “low-ball” territory, unless you are looking for a home nobody else wants.
To my sellers out there…you cannot list your home over 2021 prices…the days of listing a home for more than what your neighbor got six months ago… are gone! Further, don’t listen to any Real estate agent blowing smoke up your butt about how their super-secret marketing skills can get your home sold for top dollar. No matter how many open houses you have, or pretty pictures one takes, if your home is not desirable AND priced right…it is going to sit on the market…period!
The takeaway is that the North Idaho real estate market currently favors the buyers and sellers who are realistic.
Written and produced by:
Kory Martinelli - Realtor and Team Owner