January Market Update
After about 5 months of leveling off, the median sales price in Kootenai County climbed for the second straight month- topping out at $557,500, which sets a new all-time high for the county.
We are seeing similar trends when it comes to New Listings- which saw a net increase for the first time in 5 months (going from 166 in December to 230 in January). HOWEVER, the overall number of homes for sale continued to drop in January, this time to a historic low number.
In addition, homes remained on the market for an average of 69 days- longer than the previous two months and consistent with the overall 3-year trend.
All of this combined with the fact that price per square foot ALSO hit a Kootenai County all-time high at $304 in January indicates a few things...
1. Even though inventory is low, the buyer demand remains. This may cause prices to continue increasing until inventory catches up.
2. The inverse correlation between new listings (increased) and overall homes for sale (decreased) is a unique one...and tells me that buyers are not buying lower quality homes as frantically as before.
3. Sellers are taking advantage of an empty market to cash out high.
So...what does all this mean for you???
BUYERS- it is still an extremely competitive market, especially in the $400-$600K range, and it will probably continue or even be exacerbated by the Spring. It continues to be very important that you are financially prepared to pull the trigger so you don't miss out on a quality home.
SELLERS- You still hold the cards. Low inventory, high demand, and historically high price per square foot and overall sales prices mean that you still get to dictate pricing and terms for the most part. The market is projected to remain strong this year so if you are in the market to sell you can expect to cash out high, especially if you bought prior to 3 years ago.
As always, feel free to reach out to me with questions or comments, I would love to help!