Real estate and the region's changing markets

Change is inevitable, and the real estate market in Bonner and Boundary counties is evidence of such.

Both counties have seen considerable growth since 2020, and that creates a demand for inventory that hasn’t, or currently, exists. Builders have done their best to keep up with the demand but as many know, the cost of construction, difficulty in getting materials, lack of skilled labor and other challenges have had an impact. 

Housing prices have steadily increased over the past three years. Median house prices in Bonner County have risen 54% since 2020, and 39% in Boundary County, while sales have dropped due to inventory shortage. Over the past year, residential sales prices in Bonner County have increased 10%; while dropping 12% in Boundary County, while the total number of sold residential units has decreased. Vacant land sales prices and units sold, and percentages have been dropping in both counties. Inventories fluctuated, depending on what time of year it was. (See attached graphics)  We have seen interest rates rise and fall back down, with the Fed stating earlier this year that they do not anticipate rates to drop below 5% again, which 5% is better than 8.125% and more. 

One topic that has been continually discussed by many in both counties is workforce housing and “affordable” housing. With home and rental prices continuing to increase, we are seeing those working in our communities being forced to move to less expensive areas and commuting. Kaniksu Land Trust has created a community land trust advisory committee to address the “affordable” housing issue; while employers, such as Schweitzer Mountain Resort, have built employee housing. The “affordable” housing shortage is nationwide, not just in our area. The solution is out there, it will take the entire proverbial village working together to find it.

Now, let’s address the elephant in the room. The proposed NAR lawsuit settlement. If you haven’t seen it on television, you have probably read about it or seen it on social media. There is a plethora of misinformation being shared and it is time to set the record straight – at no time was a seller “required” to pay a buyer’s agent for representing a buyer in a real estate transaction. Nor has the commission ever been a set percentage or amount; commission or compensation has always been and will continue to be negotiable.

 Idaho is one of 12 states that has had a buyer’s representation agreement for years. This agreement stipulates what services will be provided, how much the agent will be compensated for those services and alternatives for compensation. What this settlement does is remove the offer of compensation between seller/buyer brokerages on the MLS (Multiple Listing Service). Realtors will have the opportunity to better articulate their value, knowledge, skills, and services offered and negotiate with clients on how they get paid for the service provided. No matter what, Realtors are still a vital part of the real estate transaction for consumers. Realtors in Bonner and Boundary counties will continue to serve consumers professionally, with integrity and expertise.