Despite a steep slowdown in the residential real estate market in Kootenai County, the economy there is expected to remain strong in 2008, especially in terms of commercial, retail, and tourism growth.


Jonathan Coe, president and general manager of the Coeur dAlene Chamber of Commerce, says several major commercial construction projects are expected to be completed in 2008 and more are in the pipeline.


The $50 million Parkside mixed-use tower in downtown Coeur dAlene is scheduled to be completed late next year, as is the $35 million Salvation Army Coeur dAlene Ray & Joan Kroc Corps Community Center on that citys northwest side, he says.


Riverstone, the 161-acre mixed-use development along the Spokane River northwest of downtown Coeur dAlene, is continuing with its aggressive development plans, which include condominium, office, and retail projects, he says.


Coe says developers are confident that the commercial sector can absorb the buildings erected in the brisk construction.


Im seeing things are filling up, and I think theyll do pretty well, he says.


In an otherwise healthy local economy, home sales have slowed markedly in Kootenai County for the second straight year. In the six months ended Oct. 31, the number of homes sold fell 11.4 percent from the year-earlier period, a report compiled by the Coeur dAlene Multiple Listing Service shows. The median sales price fell 4.2 percent.


Chuck Ryan, a real estate agent with Century 21 Beutler & Associates, of Coeur dAlene, says hes expecting prices to stabilize in 2008.


Theres a ton of listings, and people have a lot to choose from, Ryan says.


He says, however, as people keep moving to Kootenai County, the inventory of homes listed for sale, which was estimated by the MLS in October as equivalent to 13 months of sales, should begin to ebb.


By the end of 2008, I think well see a dramatic turnaround in the market, Ryan says.


Kathryn Tacke, the Coeur dAlene-based regional economist for the Idaho Department of Labor, estimates that Kootenai Countys population will reach 137,200 by the end of this year. She says the countys population has been increasing at an annual rate of about 2.7 percent in each of the past two years, and she expects a similar rate of increase in 2008.


Barring a national recession, 2008 should be a great year for retail businesses in Kootenai County, Tacke says. She says major retail tenants are expected to commit to projects in the Pointe at Post Falls development, where Cabelas Inc. recently opened a 130,000-square-foot retail outlet in west Post Falls.


Another major shopping center is proposed along state Route 41, near Post Falls, she says. That centers planned location is at the northeast corner of state Route 41 and Prairie Avenue.


Tacke says the tourism industry in and around Kootenai County should benefit from Coeur dAlenes national and international exposure, as well as the softer U.S. dollar.


Europeans are going to be feeling rich when they come here, she says. Kootenai County already has enjoyed a surge in Canadian shoppers due to the increase in value of the Canadian dollar against the U.S. dollar, she adds.


The countys manufacturing sector also could benefit from the weaker U.S. dollar, because a weak dollar makes U.S. products cheaper for foreign buyers, Tacke says. Potentially attractive export prices could be negated, however, by the sting of rising energy costs, she adds.


Tacke says she expects job growth this year will come in at a surprisingly strong 3 percent, or more than 1,600 new jobs in Kootenai County. Shes not expecting job growth to be that high in 2008.


The Kootenai County economy should benefit from strengthening prices for precious metals, which have triggered bolstered mining activity in the Silver Valley, Tacke says.


The average annual wage for mine workers is $57,000 and its going to get higher because metal prices continue to be high, she says, adding that Silver Valley miners spend a significant amount of their income in Kootenai County.