Housing market heats up in North Idaho

COEUR d'ALENE — In the midst of a cold snap, the local housing market is hotter than ever.

January and February are traditionally two of the slowest months of selling activity — but that’s not the case in North Idaho this year. Demand for housing is high and supply is low.

“We have very limited inventory and a very large number of buyers,” said Kristen Johnson, a real estate agent with Century 21 Beutler & Associates. “It’s a difficult time.”

The average sale price of a home in Coeur d’Alene was $509,000 last month, according to Seattle-based real estate brokerage Redfin.

Homes in Coeur d’Alene reportedly receive four offers on average and sell in around 13 days.

“We’re seeing more multiple offers on properties than we’ve ever seen before,” Johnson said.

The majority of prospective homebuyers Johnson works with are from out of state, she said, as opposed to current North Idaho residents looking to move.

“It’s very difficult for locals to list at this time,” she said. “If you don’t have a rental lined up or something else in place, you can be in a bind.”

Almost 800,000 people moved to Idaho in 2018, according to the U.S. Census Bureau.

Moving marketplace HireAHelper reported that 194% more people have moved into Idaho than left the state since March 2020.

“People thought Idaho was the place they wanted to be when the pandemic started,” said Samuel Wolkenhauer, the Idaho Department of Labor’s northern region economist.

More employers are becoming open to permanent telework, which makes it possible for some workers to relocate from more congested tech hubs, like California and western Washington.

Johnson said she’s noticed this trend among prospective homebuyers — some folks who planned to retire in Idaho have decided to skip the wait and move here instead.

“With more and more people working from home, we’ve seen a greater number of people moving here,” she said.

She expects this pattern to continue through 2021.

“The builders can’t keep up with our demand,” she said. “There’s just not enough to go around.”

In such a competitive market, Johnson said buyers need to be more prepared than ever. Often, they also need to be willing to compromise.

That could mean potential buyers not having any home sale contingencies, for example, or even sellers negotiating to stay in the residence for a period after closing.

“Sellers are getting what they need,” Johnson said. “They’re setting the demands.”

Existing homes aren’t the only hot commodity. Undeveloped land sales have also increased throughout North Idaho.

“Some people just want a piece of Idaho,” Johnson said. “They’ll move here when they can.”