COEUR D'ALENE, Idaho — Less than two years ago, it seemed everyone wanted to live in Coeur d’Alene. Homes were selling quickly, subject to bidding wars and sometimes purchased without inspections, as reported by our news partners, the Coeur d'Alene Press.
The Wall Street Journal and Realtor.com even announced that Coeur d’Alene was No. 1 in the nation in their new Emerging Housing Markets Index.
Things have changed.
Last month, Forbes published an article that stated Veros Real Estate Solutions, a national valuation and analytics provider for the industry, expects housing prices in Coeur d’Alene to fall by 5% in 2023, placing the Lake City ninth on its list of the 10 worst housing markets in America for this year.
"Coeur d’Alene residents won’t be alone in their suffering," Veros said, according to the Forbes report. "For the first time since 2012, the data provider expects home prices nationwide to fall. Nationally, Veros predicts homeowners will see the value of their nest eggs drop by 0.5%."
The latest report from the Coeur d’Alene Regional Realtors said the median price for a single-family home in Kootenai County in January was $525,000, down from $550,000 in December, but nearly flat compared with $526,000 in January 2022.
The number of homes sold in January, 109, was down 40% from 183 in January 2022.
The number of active residential listings in January, 609, was down slightly from about 630 in December, but well up from 160 in January 2022.
Local real estate agents and brokers say the market is sound and in demand. They note the area’s setting of mountains, lakes and rivers will always be attractive.
“We live in one of the most beautiful areas in the Pacific Northwest. Our natural beauty, our culture and sense of community still drives people to us,” wrote Jennifer Smock, co-owner, managing broker, Windermere/Coeur d’Alene Realty, Post Falls.
She said housing values will not plummet. A 5% depreciation is not extreme given the recent increase in values.
“It could be seen as a leveling off and a welcome to some consumers,” Smock wrote.
North Idaho’s winter weather — gray, cloudy and cold — can impact housing.
“I would suspect we will see a few people move, but it won’t be anything noticeable,” Smock wrote. “We have had a mild winter by some standards, lack of sun can be hard, but it’s a tradeoff many are willing to make to live here.”
Ray Murphy with North Idaho Real Estate has been in the business nearly 20 years. When he started, the Spokane and Coeur d’Alene housing markets were parallel.
Today, the average price of a Spokane home is a little less than $400,000, according to Zillow, far less than Coeur d’Alene.
“They’re selling faster in Spokane County than they are in Kootenai County," Murphy said. "But the difference in average price has really elevated in Coeur d’Alene.”
He said the area can be difficult for blue-collar workers to afford, but people with plenty of money are moving here.
“It’s amazing how many homes are sold for over a million and the buyer paid cash,” Murphy said.
He expects the Coeur d’Alene market to settle back a bit from the dramatic run-up of 2021 and said a 5% reduction would not be a bad thing.
Murphy said while many buyers are seeking Coeur d’Alene homes under $350,000, there aren’t any. There are, however, many in the $600,000 and up range.
Murphy said he would like to see more local listings to reach what he would consider a healthy market. There were nearly 1,100 in early September.
“There’s so many people that are interested in moving here. It’s just, can they afford it?” he said.
Jared McFarland, CRR president, said the Kootenai County median home price peaked at $559,000 in May 2022.
Then, interest rates began rising, which affected housing prices and set off a “nice, slow correction.”
He expects mortgage interest rates to settle closer to 5% this year.
“That's a healthy place for interest rates to be,” he said.
McFarland said that overall, the local housing market is healthy.
“The last two years have not been healthy, and we're moving back toward that,” he said.
He disagreed with the report’s claim that Coeur d’Alene would be among the worst housing markets in 2023.
The quality of life, the natural beauty, the close community and the peaceful setting are hard to beat.
“It's a wonderful place to live,” he said.
Lindsay Allen, past CRR president, agreed Kootenai County's housing market is solid and remains in demand.
Inventory has increased, prices have come down, and buyers have more options.
“It’s becoming more balanced,” Allen said.
The Coeur d'Alene Press is a KREM 2 news partner. For more from our partners, click here.
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