Kootenai County’s single-family dwellings, which are classified as being on less than 2 acres, went for a median sales price of $538,000 in May 2023.

Now, one year later, that median sales price has remained flat.

Why?

“Interest rates,” Windermere Coeur d’Alene Realty co-owner Jennifer Smock said Thursday. "Interest rates are really holding the market back right now. Good, bad, ugly, it doesn't really matter, it is what it is."

The average sold price in Kootenai County was $672,000 this time last year.

"Again, this is fairly flat as well," Smock said. "It's OK. We're happy to see that, actually. We'd rather see something like this than it going upward at a higher trajectory at a 2 or 3% a year."

Smock, an industry expert who has been in real estate for over 20 years, shared a real estate forecast during the Hayden Chamber of Commerce's Networking, Business and Connections luncheon at the Best Western Plus Coeur d'Alene Inn.

Resales this time last year were at $493,000. Today, they're at $515,000 for a 4.5% increase year over year, which is not bad, Smock said.

"This is right on par with where we would love to see it every single year," she said.

New construction in Kootenai County went from $551,000 to $540,000, Smock said.

"That does not mean the price of new construction is going down," she said.

Housing market data and research are showing that consumers are requesting smaller homes, Smock said. This is because some don't want to deal with the upkeep and maintenance of large dwellings, she said, and because others simply can't afford larger homes with current interest rates.

The market for vacant land exploded after the COVID-19 pandemic. This time last year, smaller parcels that went for $315,000 are now at $335,000, up about 6%. 

"It just went crazy," Smock said. "Even the parcels of land that had been on the market for five years sold. They were bought up because people just wanted that North Idaho dream."

Larger parcels of 10-plus acres that went for $449,000 this time last year have been reduced to $424,000, she said.

"The consumer has finally reached this limit," Smock said. "We all have reached this point, the paying point, where we're like, 'No, we're just not going to pay that anymore for that.' We're seeing a lot of offers come in considerably lower and tons of price reductions on land."

Regarding multi-family housing, Smock said for a period of about two years, it just didn't exist on the market. This time last year, dwellings such as duplexes and apartment complexes went for $575,000, based on what was sold. Condominiums that went for $360,000 and are now selling for $430,000.

Inventory for single-family dwellings is around four months, Smock said.

"If no other inventory came on the market today, at the current level that we were selling houses, we would be completely out of inventory in 3.9 months," she said. "There would be nothing left to sell. This is not good.”

Some areas of the county have more inventory than others.

“We’d love to see somewhere between six and 10 months of inventory," she said. "We're just not there yet but this is better than it’s been historically in the past."

More than one-third of local housing sales that closed in the past six months were paid for in cash. Many of those buyers are from “shoulder markets” in places such as Washington, Montana, Oregon and California where housing values continue to appreciate.

From 2023 to 2024, Idaho had the lowest percentage of year-over-year home appreciation. Smock said this was not a surprise.

"Our values went up huge," she said. "It makes sense that there's going to be pushback with the interest rates, they're going to come back down, we're not seeing the appreciation because we already enjoyed that appreciation two to three years ago."

The market is in correction mode at this time. Smock said the local market is strong.

"This is steady, we like it, it's not too crazy, it's not too slow, we're just right," she said.

During a Q&A, she said it would be helpful for potential buyers to sit down with a lender and make a game plan, then talk with a real estate agent about next steps.

"You will be able to buy a home, there is light out there," she said. "It's just you need some solid people behind you to help guide you."

    Two real estate signs are seen Thursday on Government Way in downtown Coeur d'Alene.