Growth and Appreciation Predictions for 2007

I originally posted this on January 11th, 2007 on our other blog - I am deleting the other blog and merging everything over to the AR blog platform.

It's interesting. My prediction is that North Idaho will see an 8% appreciation this year. That's 1% below our average annual appreciation, yet several points above inflation. Fiserv just released their numbers for the North Idaho area. 7.3% predicted between June 2006 and June 2007.

It always seems that it would be impossible for prices to climb any higher, and those of you in California and NYC can certainly relate. But, historically, the North Idaho area has always remained consistent. We don't have appreciation/depreciation mood swings. We have jumps and then maintain, then jumps and then maintain. The last 3 years have been jump after jump after jump. It seems like we should be heading for the 'maintain' but every indicating factor just doesn't point to that.

With the friction currently happening between extremely low unemployment rates and the large amount of commercial construction going on and the dramatic increase in tenant applications AND dramatic increase in buyers actually buying, coupled with the very low vacancy rate we are experiencing, this year is primed to be another shift in favor of investors/owners.

We have space to grow. Lots of it. Both up and out. Many years ago there were predictions that the space between Coeur d'Alene and Spokane along the I90 corridor would eventually be completely full - one long continuous town. It's looking more and more like that is where we are heading. It makes logical sense. Easy access, flatter land (easier, and cheaper to build on), and lots of growth room, without destroying the pristine beauty of the waterfronts and mountains. So basically, the best of both worlds.