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Mike McNamara
Mobile Phone:
208-660-6320
Mike@HomesCDA.com
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Mike McNamara
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Mobile Phone:
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Mike@HomesCDA.com
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Local Market Conditions and Forecast for 2019 posted on 2-20-2019

The local real estate market seemed to peak locally around last summer around June or July. Don't take this wrong, it is still a strong Sellers market here, but not quite as strong as it has been. Home prices in the Seattle area and in parts of California are coming down. These markets are were most of are local Buyers are coming from and their markets do affect our market. With prices coming down, they will not be able to sell their home quite as quickly and for not as much money. 

With inflation under control the Fed has decided to leave rates alone. They do not want to slow the markets down and they want to keep the economy going. We have been on a 10 year run now, and this run con not last forever before we see a recession. It will be interesting to see how far these Trump tariffs go and how much they will affect the inflation rate, the interest rates and the economy. The more severe the tariffs, the more they will affect the economy and mostly negatively. My guess is that Trump will not carry them to an extreme. Look for 2019 to be a good year for the economy with local home prices slowing in their appreciate, the real estate market to slow but still be strong and interest rates to remain stable or later on in the year go up modestly.

In 2020, I see more instability and uncertainty than this year. A presidential election in the fall of 2020, the stock market becoming more unstable and more pressure on interest rates going up modestly. There is a chance that this could lead the start of a recession. We will have to see who is elected president and who controls the congress. It also depends on the effect of tariffs on businesses, the interest rates and how this effects the economy. It is too early to tell for sure.

These opinions reflect the feeling of Mike McNamara only, not his company or any other individual. Any unforeseen changes in the national or world economy can affect the markets either up or down. You should consult your accountant and financial ad visor before making any financial moves.

 

We look forward to a good local robust economy in 2019. Wishing all of you the best in 2019!

 

 Please call or e-mail me if you have any real estate questions.

 

 Local Market Conditions and Forecast for 2018 posted on 1-17-2018

Well we are already well into 2018. With it will bring new tax rules. How will these affect our local real estate market in 2018.

 

The allowable deductible mortgage interest on loans homeowners pay on primary and secondary homes,  will be lowered from it’s current 1 million debt maximum to $750,000 starting in 2018. This will affect homeowners who have mortgage debt greater than $750,000. This will slow high priced home sales down some.

 

With the business tax rate going down from 35% to 21%, this will have a major effect on the economy. Expect employment to increase, wages to increase, unemployment to decrease all modestly. Expect inflation to increase.

 

Buyers are still moving into the area. Most are coming from strong real estate markets in California and the Seattle area. Expect continued low inventory of homes for sale in our local market. Prices to increase around 6 to 8%. Expect home purchases with a Buyer loan debt over $750,000 to slow modestly. Expect a modest increase in interest rates to around 4.75% on a 30 year fixed. Expect the stock market to be affected negatively if the interest rates go up to high. I expect any negative effective to be minor. We have good fundamentals in place for a good economy.

 

These opinions reflect the feeling of Mike McNamara only, not his companies or any other individual. Any unforeseen changes in the national or world economy can affect the markets either up or down. You should consult your accountant and financial advisor before making any financial moves.

 

We look forward to a good local robust economy in 2018. Wishing all of you the best in 2018!

 

 Please call or e-mail me if you have any real estate questions.

 

Local Market Conditions and Forecast for 2017 posted on 12-12-2016

With the election of a new president, change is in the air. With the president elect Donald Trump being a real estate broker and business man, and having made most of his fortune in real estate, I would suspect that he would be pro real estate. 

Time will tell. But locally how things might  change in our local market. Expect interest rates to go up. Interest rates have increase on a 30 year loan from about 3.75% 3 months ago to a current rate of 4.5%. Expect this to slowly continue. Expect the feds to raise the  prime rate slightly at their December meeting. Rising interest rates can affect your monthly home payment more that an increase in price. This will eliminate some Buyers from being able to buy a home, especially the ones with low down financing.

 However, since the recession, Coeur d'Alene real estate continues to be a great investment. With the low inventory of  homes for sale in the local market, new construction will continue to be almost 20% of the local home sales. My projections for this coming year is for an average 10% increase in prices.

 75% of the Buyers in our current market are coming from our shoulder markets, especially California and Washington (mostly from the Seattle area). Home prices are higher in these areas and many Buyers feel the quality of life is better here and the homes are much more affordable. Several are coming from the surrounding area around Coeur d'Alene. (as in Sandpoint, Spokane, Moses Lake and Montana ). Expect this migration into the Coeur d'Alene area to continue as baby boomers retire and relocate.

Expect another strong year for Coeur d'Alene real estate.

Forecast by Mike McNamara

 

Local Market Conditions and Forecast for 2016 posted 2-12-2016

With all the uncertainties in the global markets and the instability of the stock market, it as usual makes it hard to predict what will exactly happen to our local real estate market this year. One minute the fed is hinting of raising the rates modestly this year, and the next they are saying that the world economy and the stock market are too fragile to raise rates. Expect little or no upward movement in the rates this year.

As far as local prices go, the lower price range continues to be very much of a Seller's market. There is a lot of new construction going on in this price range that is trying to keep up with demand. Expect this to continue this coming year, but I think the price increases of the past 3 years will moderate some.

The middle price range will continue to increase but at a more moderate pace also. There is quite a bit of new construction going on in this price range also, but not as much as in the lower price range. Most of these Buyers will be relocating from out of town due to retiring and some will be relocating for new jobs.

The upper price range will be more affected by the stock market and the national economy. The stock market is going through a strong correction as of this date, and who know for sure how long this will last. Look for price increases in the price range to moderate more than in the lower price ranges.

All in all, look for another great year for our local real estate market. Word is out what a great place this area is to live, and we have a lot of families and retirees wanting to move into the area. This combined with good home prices and good interest rates will make for another great year for Coeur d'Alene Area Real Estate.

 Forecast by Mike McNamara