Comparing Coeur d’Alene & Post Falls real estate market statistics year over year vs. year to date is interesting. Just comparing December 2011 with December 2010, we see some good progress.
The absorption rate has dropped by nearly 4 months – this is a good thing
The average list price has held
The median list price has held
The average sales price has dropped dramatically
The median sales price has dropped slightly
The average days on market has dropped
The median days on market has dropped
These things are all great to look at, but in reality, they don’t mean a whole lot. Often, journalists and real estate agents will interpret that the average and median prices are HOLDING (no longer depreciating or appreciating) by looking at these numbers – but they are very very wrong. All they tell us is the price at which things are selling, nothing about the actual item that is selling.
Let me explain: The average sale price has dropped 16.80% year over year. No, that doesn’t mean prices have depreciated that much in the past 12 months (they may have, but it doesn’t mean that). What it means is that people are buying homes that cost 16.80% less on average than they did a year ago. That could mean people are spending less on homes, perhaps buying smaller homes, or that homes have decreased in value OR a combination of all of the above. The last answer is the correct answer.
Home prices have decreased AND more sales are happening in the lower price ranges (people are buying less expensive homes) which leaves us with a greatly decreased average and median sales price of homes.
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Check out Coeur d’Alene homes for sale here:
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Check out Post Falls homes for sale here:
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