There are no homes for sale in Moscow.” That seems to be a sentence too often spoken lately. And the tough thing is, it is essentially true. Our inventory has been reduced to only a few homes and most out of the range of buyers. So there isn’t really anything for sale now but what about the rest of the year? It is easy to speak in generalizations or get our impression of how different 2021 is by gut feel or anecdotes from looking at zillow or other snapshots but what about the numbers? As we come to the close of the 2021 housing market, let’s look back on some data of how Moscow and Latah County’s housing market compares to this time last year. 

The number of sold single family properties in Latah County is down 13% from 389 to 338 year to date this year from this time last year. The average sale, however, is up 15% this year at $385,928 over $335,407 one year ago today. This combination has resulted in essentially no change in total sales volume this year over last year (the difference is less than $30k in a total volume of over $130 Million).

Interestingly, the increase in average sale price is significantly higher outside of Moscow. While the average sale price in Moscow is now over $400k, this represents only a 10% increase over last year. Whereas in the rest of Latah County we saw an increase of $66k, which brings the average sale price of single family homes to $365k, which is a staggering 22% increase.

The largest change, however, came in the category of land sales. Latah County saw a 34% increase in the number of land sales and a whopping 42% increase in the average sale price to bring about a titanic 91% increase in the total dollar volume of land sales across the county. 

What could be driving this especially when builders and building supplies are at such a shortage? Typically, we would think that if building costs are through the roof and timelines are pushed out to the point that many local contractors are booked for more than a year out that this would cool the market for land and buyers would be looking to existing homes to fill their needs. The trends I am seeing through my own experience are people planning much further ahead with their land purchases. More and more land buyers are thinking 5-10 years down the road but are just trying to secure their place to build here in north Idaho. Some also see it as a good hedge against the growing problems of inflation. That helps explain the demand factor but the price is then driven up because of the lack of supply. How can that be when land is seemingly one of the more abundant characteristics of Latah County? Well, the county is still fairly restrictive when it comes to creating new parcels. The comprehensive plan calls for preserving the agricultural heritage of Latah County and this has led to restrictions on the number of splits allowed. This, coupled with the backlog of work for local surveyors, well drillers, etc. is keeping supply of lots and land lower. 

So, as we have seen, prices are up as demand continues to rise with a limited inventory. Whether you are looking to buy or sell in the coming year the time to prepare for 2022 is now. Buyers should get prepared with financing and clear plans to be ready to jump with their best foot forward when the right place comes up. Sellers should get ready to be one of the first or only homes on the market to capture the best possible terms through competing buyers. Happy Thanksgiving and Merry Christmas. 

- MIKE CHURCH