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Spokane, Washington  Est. May 19, 1883
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Regional home sales set record pace

By Alison Boggs and Becky Kramer The Spokesman-Review

Homes sold at a record-setting pace during the first six months of the year.

Nearly 5,000 homes changed hands in Spokane and Kootenai counties through the end of June, generating $690 million worth of residential real estate sales. Average sales prices rose on both sides of the state line.

The strong market reflects continued low interest rates and “kind of a rush to this area,” said Richard Kohles, president-elect of the Coeur d’Alene Multiple Listing Service.

Low interest rates are allowing many families who already own homes to move up, according to Kohles. If they own a $125,000 home, they’re looking for a larger home in the $175,000 price range, he said.

The region also continues to attract a strong influx of new residents from other states, particularly from high cost areas of California, he said. Kohles was recently in San Jose, where the median home price was around $700,000.

“People can sell their home for somewhere in that vicinity, and buy a nice or nicer one here for $200,000,” he said. “That seems to be what’s happening.”

The Spokane Association of Realtors reported that 3,378 home sales closed through June 2004, a 10 percent increase over the same time period last year. Total sales volume was almost $475 million, a 19 percent gain from the first six months of 2003. The average sales price through June 2004 was $140,523, up 7 percent from 2003.

However, the average sales price in the month of June was $150,260, up $16,000, or 12 percent, from June 2003.

In Kootenai County, residential real estate set a record during the first sixth months of the year. The number of homes sold – 1,377 – was up 31 percent over last year at this time. Total sales volume reached nearly $215 million, a 50 percent gain from June 2003. The average sales price through June was $155,853, up 14 percent from a year ago.

“If you look at our economy, it’s doing very well,” said Kohles, referring to recent job growth in Kootenai County. “Wal-Mart and Costco didn’t come here by accident. They were looking at the demographics.”