Insane, ridiculous, and crazy- these words are all you hear from people nowadays when discussing the real estate market. While these adjectives are warranted, it is worth diving in for a second look and giving perspective to what this actually looks like in our local market. These same words are used in news articles across the country that report buyers lining up around the block to view a newly listed property, and then twenty offers coming in on that property leading to it eventually closing around $80k over asking. This is not our local market here in Latah County.

From the start of 2021 until now, there have been 266 residential properties listed in Latah County ranging between $0-$650k that are active, pending, or sold (excluding raw land). These properties include manufactured homes, condos, townhouses, single-family homes, and homes on acreage. Of those 266 properties, 180 have sold, 56 are pending and 30 are still on the market. The average list price is $320k with a lower average selling price of $312k. Interestingly, when you break this data into two groups, one group being homes under the average price of $320k and the second being homes over that price, the housing under that $320k mark is selling at an average of $4k over the asking price while homes between the $320k-$650k mark are selling for an average of around $10k under their asking price. 

Tying this all together-

If you’re looking for an “entry-level” home under the mid $300k’s the competition will be stiff. If you liked it enough to offer on it there is a good chance that a few other buyers are thinking the same thing. Will there be twenty other offers? Almost certainly not, but there could be multiple offers which means, offer price and terms will be key to coming out on top. Now is a great time to sell a mobile home, condo, or townhouse as buyers are eager to find an affordable housing solution.

Buyers in the mid $300k range and higher are being pickier and more selective in their home shopping as we can see from the lower average selling price. This is especially true when you get into the $500k+ range. As a seller, it is important to have your home looking its best and priced as close to that sweet spot as possible where you are pushing the market while at the same time not coming in so high that buyers throw in the towel and pass it up. 

Each house is unique in its location, size, style, and condition and will fare on the market accordingly. There will be that house for $250k that sits on the market despite being affordable due to its rough condition and at the same time, there will be that house for $650k that sells in a day for over asking due to its great location and features. While we have seen a few properties this year go for $50-$100k over asking ( just like you hear stories about in the news), thankfully, that is not the norm and our market has not reached that level of imbalance. Sellers are capitalizing on great appreciation right now. With interest rates remaining very low, however, and lumber futures on the downward trend, it is allowing buyers to continue purchasing, planning remodels, and new builds when the right property comes up.

- JED WHITLING