Housing supply likely to fall as strong sales continue
COEUR D’ALENE, Idaho — Condominium projects across the greater Coeur d’Alene area are reporting strong sales as the end of 2010 nears. With projects such as Black Rock’s Riverfront House Condos being over 70% sold out, the Village at Riverstone condos nearing 75% sold out and strong sales at both Parkside and Ridgepointe, the supply of condos for sale in Coeur d’Alene will likely fall as 2011 approaches.
The real estate decline in 2008 hit developers of condominiums extremely hard throughout the world. In Coeur d’Alene, projects such as Ridgepointe Towers went back to the bank while others such as the Village at Riverstone held public auctions to clear out remaining inventory. Other projects in the area were forced to slash prices in order to compete with auction and bank-owned prices. This was good news for buyers.
Very few developers, if any, have plans to develop more condominiums in the near future. With strong sales in the condo market, and few projects on the horizon, supply will decline in the coming years. And while this is a good sign for the market, eventually prices will climb due to the lack of inventory and an artificial bubble could possibly form until more inventory can be produced to help meet demand.
Only time will tell how the market will react to a declining supply in housing. Buyers and sellers alike are still fearful to make an investment in real estate even as a bottom nears.
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