Be Careful. What you read may be inaccurate, even from "experts".

Realtytimes.com has a "market reports" area where agents throughout the country can post market conditions about their areas for consumers to read and review. I've been pretty good about updating our reporting (under David's name). As you also know, I'm a stickler for accurate and factual information and for providing full disclosure and backup of the source of that information.

This post should serve as a warning - Be very careful about what you read. There are good honest agents throughout the web world (and in real life) reporting inaccurate information. Inaccurate enough that were one to read and believe it, it may change one's course of action.

I just recently ran across this in our own area. Agents reporting declining prices and yet despite digging deep and looking everywhere, I can't figure out where in the world they are getting this information. Here is our updated report for the Coeur d'Alene Metro area:

Warning: be careful what other agents are saying about the Coeur d'Alene area. Some are saying the market is dead. Some are saying prices are declining. Both of these scenarios are false. When you see/hear agents reporting market conditions, ask them to site their source and provide a direct link to the data they are siting.

Here is the truth and it's quoted directly from the Coeur d'Alene MLS April 2007 Market Report (full report available on our website):

For ALL residential sales during the same time periods, we note approx 25% decrease in the total number of sales, 23% decrease in total sales volume, 2.4% increase in average price, 5% increase in median price. These numbers reflect sales of ALL residential listings, from the inexpensive mobile homes on rented lots to the high end waterfront properties. In the 6 month period ending on Apr 30, 2006, sales prices ranged from $8,900 to $11,750,000, with an average of 113 days on market. For the 6 month period ending on Apr 30, 2007, sales prices ranged from $10,000 to $2,990,000, with an average of 122 days on market.

Additionally, OFHEO just released their 2006 Q4 report (also available on our website) that showed the Coeur d'Alene Metro area with a 10.47% appreciation rate. Fiserv has predicted the Coeur d'Alene Metro area will reach 7.8% appreciation in 2007 and other (not as reliable) sources have predicted an appreciation rate of up to 11%.

In other words, we are not in a declining market. Most agents perception of 'decline' is that people are reducing their listing prices. The reality in that is that the listing prices were higher than market value in the first place and when they price at market value, the home sells, quickly too.

The luxury market is alive and kicking and very strong. The luxury market in North Idaho is defined as homes priced from $500,000 and over (the top 10% of the market). That price point will be raising before the end of the year.