Market Update

Posted by: admin  :  Category: Boise Market Trends, Housing Market, Local Boise Market Update, Market Trends, Market Updates, Real Estate, Real Estate & Housing

The numbers are in

Two months in a row we’ve seen double digit increases when compared to the previous year. Inventory also has been a big topic lately.

While inventory doesn’t historically increase until April, we reversed four consecutive months of decreasing inventory when 2,044 homes were on the market in January.

Now here’s something all this data doesn’t quite say. Right now, I have multiple buyers waiting to buy and sellers waiting to sell. My next blog will encourage you not to wait, but rather to beat the rush.

But now, back to your monthly numbers!

While sales historically drop when the calendar rolls over and January hits, this year they went up, however so did the days on market. This is odd, however with only one month of higher-than anticipated days on market, it’s too soon to suggest any sort of a trend. We’ll keep you posted as future data points present themselves.

Up and Down Update

Up

  • Single family home sales increased 10% when compared to January 2013.
  • Days on market! In January, homes were on the market for 70 days, compared to 59 in December and 53 last January.
  • The 99 new home sales created a 27% increase from January 2013.
  • Existing home sales, at 309, were up 6%.
  • Total sales were up 29% over December’s (reversing typical trends).
  • Distressed sales, at 12%, were up 2% from last month, but down 13 % from last year (not to be mistaken for distressed inventory/listings).
  • The median home price, at $208,190, was up 12% from January 2013.
  • Inventory was up slightly, showing 4.2 months and 2,044 homes in January.
  • Down payments were up. More buyers are puttin more than 20% down.

 Down

  • Pending short sales, however pending REOs went up.
  • Distressed inventory went down 1% between December and January, 2014.
  • Sales to first time buyers decreased to 31% in 2013.
  • Home building dipped in January according to the Department of Commerce. That makes sense. Brrr!
  • The Fed’s monthly bond purhcases, which push down longer-term interest rates, according to KTVB.

Thank you to the Ada County Association of Realtors for providing these wonderful numbers! Check back next month for more on my interpretation and vantage point.

Sincerely,
Providing you real estate market trends
ShanaFosterMoore@gmail.com
Your Local Boise Real Estate Professional

Renters Vs. Owners – Who’s Really Better Off?

Posted by: admin  :  Category: Boise Market Trends, Market Trends, Real Estate, Real Estate & Housing

Renters Vs. Owners – and other interesting Boise and Ada County Demographics.

When it comes to the percentage of their income that goes toward housing, owners are better off than renters. At least according to Census data, which reports about 50% of renters put less than 30% of their income toward housing costs, compared to 66% of homeowners who have the majority their income leftover after the housing-related bills are paid.

This Census data from American Communities Surveys suggests that about half of local renters would meet a common rental criteria – that monthly income must be three times the rent. Two-thirds of owners would meet the same criteria.

The catch. Home repairs are not included in the lists of costs. The costs included are mortgage, taxes, insurance and utilities. Let’s not forget that renters have the fortune of calling landlords when repairs are needed. This surely would sway those numbers a bit. It also provides renters with the advantage of being less prone to expensive surprises, if they carry renter’s insurance. Without renters insurance, which also isn’t included in the housing costs, a water heater leak could become a big expense for a renter, in terms of damaged material goods. I recommend renters insurance!

 

Know Your Market

Delving Into the Demographics of Ada County

  • Median rent in Ada County $806 (compared to $790 the two years prior and $860 before that).
  • Rental Vacancy Rate 3.7%
  • Homeowner Vacancy Rate 1.6%
  • 161,876 housing units with a median of 5.8 rooms, with three bedroom units being the most popular (46.9% of houses)
  • Population of people 16 years of age and older – 315,225 in Ada County and 171,487 in Boise
  • 65% of homes are owner-occupied and 35% are renter occupied.
  • 77.5% have a mortgage (of the 100,000 owner-occupied units)
  • The median mortgage is $1,295
  • Average household size is 2.52-2.64, with the higher number representing owner-occupied units
  • It appears that moving has expedited – more people moved within the past several years in 2012 than in the two years preceding
  • Median earnings for full-time workers $36,000- $48,000 (depending on gender)
  • Median household income and benefits $53,909 in Ada County (slightly lower with just Boise)
  • Mean household income and benefits $69,768
  • Median family income 63,736
  • Mean family income 81,963
  • 20 minutes – the mean travel time to work
  • 4.8% are unemployed, 62.3% are employed and 32.7% are not in the work force
  • 12% of people and 8.4% of families are below the poverty line

Data source

 

If you filled out the ongoing and longer Census survey that supplements the ten-question decennial Census, this was your 2012 data at work. Thank you for populating my latest Foster Boise Blog post with your efforts! PS – way to make it this far, through all that data!

Sincerely,
Providing you real estate market trends
ShanaFosterMoore@gmail.com
Your Local Boise Real Estate Professional

The average rent in Ada County Idaho is $806, however this is not for a specific size or number of bedrooms.

Housing Market Trends

Posted by: admin  :  Category: Boise Market Trends, Idaho Real Estate Price Trends, Market Trends, Market Updates, Real Estate

A Strong Start to 2014

Boise’s local market real estate trends took a turn for the better, when December’s numbers flipped a two-month trend of unimpressive data.

I’m pleased to also report that 2013 started my tenth year in real estate, and it doubled my predictions and became my best year yet. I’ve heard similar reports from my associates. This makes for a strong start in 2014 when it comes to real estate and home sales in Boise. It sure helped with the community contributions we revealed in our last blog post.

You may recall that December was predicted to be unpredictable. Typically sales are lower than in November. December sales were up from the month and year before, making for a strong finish to 2013 and serving as an optimistic springboard into the New Year.

Homes are up in price across the board, however new homes realized a bigger jump (19%) than existing homes (13%) compared to 2012. For new homes, the median price is 280,500 compared to existing homes 183,000.

The median home price is predicted to stay strong throughout the year.

Median prices have now sat above 200,000 for five consecutive months. New homes are up in price by 10%, putting their median at $274,171. Existing homes were up 15% compared to last year at this time, bringing their median to $185,000.

When compared to the median family income of $67,519, our median home pricing is considered affordable. The same cannot be said for the rental market pricing, as we examined in our recent rental market blog.

Source: Ada County Association of Realtors

 

2016 homes on the market was an inventory decrease from November, across all price points. It tends to decrease between August and December. That said, inventory is up 21% since last year.

Our supply averages at 3.6 months, but is low in homes priced under $100,000. The most popular price point in December was 160,000- 200,000.

Here’s our monthly up and down update, depicting Boise’s real estate market trends:

Up

  • Median prices. In 2013, our overall YTD increase was up 16% to 198,000.
  • Year-to-date sales are 7,957; up 14% over 2012 YTD sales of 6,979.
  • Dollar volume for December was up 26% to $136 million and YTD we are just over $1.8 billion in sales.
  • Days on market averaged 59 in December, up nearly a week from November. Our year-to-date average is 52 days. Boise – count your blessings. In Helena, Montana days on market average at four months, some recent research revealed.
  • New homes sold in December totaled 134; up 16% from December 2012 and up 4% from November.

 Down

  • Pending sales, at 686, were down 13% from December 2012.
  • Distressed sales, at 12%, were down from December 2012’s 24%, but up 1% from November 2013.
  • Short sales. Of the distressed properties, there were more REO/bank owned sales than short sales for the second month in a row.
  • Inventory decreased in December from November, but is up 21% since last year.

Static

  • The most popular price points continue to be $160,000 – 200,000 and homes under $160,000.
  • Interest is still hovering around 4.5%.

Please keep me in mind as a resource for your real estate questions, valuation needs, or referrals. I’m always happy to consult about the relation of the current market with your specific real estate goals.

Sincerely,
Providing you real estate market trends
ShanaFosterMoore@gmail.com
Your Local Boise Real Estate Professional

Boise Rental Market Trends

Posted by: admin  :  Category: Boise Market Trends, Investment Property, Market Updates

The rental market appears different depending on which side of the rental market fence you’re on – renting homes or owning rental homes.

Investors with rental property in Boise, aka landlords, have been enjoying a long run of a strong rental market in Boise. Rents have steadily increased, and the number of quality candidates has seemed high for years – I first noticed it when the housing market crash led many homeowners back into the rental market.

Renters, on the other hand, have experienced a steady stream of increase in rents and wonder if or when it will slow. Locally and nationally, it’s getting harder to afford rent, as this data-packed MSN article details.

The number of rental households has been sharply increasing since 2005. Thank you Ada County Association of Realtors and Marc Lebowitz for sharing your data.

Rental market trends in Boise

While I can’t provide the crystal ball, I can and will provide data and indicators into the Boise real estate trends and rental market trends and how they’re shifting.

Typically, the rental market and the real estate market work conversely. With the real estate market slowly recovering, one must wonder if, or when the rental market will slowly balance that trend and weaken.

I’m often leery of national sources predicting local trends, however here’s one quote from RealFacts, “In 2014-2015 rents will stall or drift downwards as occupancy rates decline.”

When compared to the national housing market recovery trends, Boise has been speedy.

 

Landlords and investors in Boise shift their ROI/cash-on-cash return expectations

Investors who enjoyed a solid position in Boise since 2009 or so report that new purchases have been dropping and their rate of acquisition has slowed. It’s happened as prices have increased, distressed inventory has decreased and quality investment properties have been challenging to find. With interest at an enticing 4.5% or so and predicted to rise, returns on new purchases will further be affected.

That said, if you have a quality investment property you’d like to offload, the pool of buyers is hungry.

The rental market has seasons and seems to run a little slower in winter than in the busiest Boise moving seasons (spring through fall). If the overall strong rental market weakens in conjunction with the strengthening housing market, landlords would have fewer candidates to choose from, need more time to find the right renter, and start paying closer attention to how each property compares from a price and condition standpoint.

Thank you Ada County Association of Realtors and Marc Lebowitz
for sharing your presentation.

Renters smart to consider buying in Boise

Its safe to say that as the housing market recovers and interest rates eventually rise, it will trend toward costing more money to own less home. If you’re renting and considering buying, it will not behoove you to wait. The housing crash created a lot of fear and is a common reason for waiting to buy. If that’s your primary reason, it’s time to test those emotions with numbers and sprinkle in some market trending for motivation.

Take note- homes on the lower end of the price range are in high demand.

That said, if the rental market “weakens” or “levels out” it’s good news for you, your negotiating power and the future of those steadily rising prices you’ve endured. Landlords priced at the high-end of the scale for their property tend to consider “scaling back” on rents during a weaker market, which would put renters back into a less-competitive position.

Let me know if and how I can help you, wherever you may fall in the process. I’ve had positive reviews from my investor clients (buyers and sellers) as well as my first-time home buyers who make that leap from renting.

Sincerely,

 

Shana Moore, Your Local Boise Real Estate Professional

 

 

Your Local Boise Real Estate Professional

 

Interest Rate Chart

Posted by: admin  :  Category: Boise Market Trends, Financing, Idaho Real Estate Price Trends, Real Estate, Uncategorized

Here’s a chart with updated mortgage interest rates, for reference in your real estate considerations and mortgage payment calculations.

Mortgage rates 30-year fixed 15-year fixed 5/1 ARM 30-year jumbo
12/11/2013 4.55 3.6 3.34 4.55
12/4/2013 4.55 3.62 3.33 4.57
11/27/2013 4.44 3.47 3.29 4.45
11/20/2013 4.39 3.42 3.28 4.42
11/13/2013 4.48 3.49 3.33 4.51
11/6/2013 4.35 3.42 3.25 4.44
10/30/2013 4.27 3.38 3.26 4.35
10/23/2013 4.27 3.37 3.27 4.38
10/16/2013 4.42 3.49 3.31 4.55
10/9/2013 4.39 3.47 3.34 4.58
10/2/2013 4.41 3.47 3.4 4.58

Chart data courtesy of www.bankrate.com/finance/mortgages/current-interest-rates.aspx

Market Trends Update

Posted by: admin  :  Category: Boise Market Trends, Idaho Real Estate Price Trends, Local Boise Price Charts, Market Trends, Market Updates, Real Estate

Boise as a “Bright Spot”

The latest data is in, thanks to the Ada County Association of Realtors (ACAR). There are several notable indicators to moitor, as we keep the pulse on the market trends in Boise.

On a country-wide scale, Boise was singled out as a bright spot by the National Association of Realtors (NAR) due to strong recovery, improving inventory, home sales and an improving median sales price point.

Increases in home prices can be expected in Idaho. Source: Ada County Association of Realtors.

One noteworth indicator is sales pending. “This is the third consecutive month in which we’ve seen a decline in pending sales, relative to the previous year. This is a key number to monitor moving forward,” reports Marc Lebowitz, executive director of the Ada County Association of Realtors (ACAR).

The arrows indicate the lowest period and the start of the recovery, both in 2011, according to the Ada County Association of Realtors.

Also noteworthy is Boise’s median home prices and “promising” recovery, particularly when compared to national trends. Median prices are higher than we’ve been all year, and sitting above the 200,000 landmark for the forth consecutive month. Fortunately, when compared to the median income of 67,500 for Ada County, homes fall into a range deemed “affordable.”

Inventory is close to equilibrium, according to the Ada County Association of Realtors.

Inventory sits at 3.8 months on hand, and has climbed throughout the year, dipping 1% last month. The lowest-priced homes are in shortest supply. Six months of supply is considered “stable.”

The gold star indicates the start of the recovery, according to the Ada County Association of Realtors.

Real Estate Market Trend Indicators

  • Year to date sales are up 15% from 2012, at 6,810 homes.
  • Dollar volume was up 13% for the month.
  • Days on market averaged 52 in October, which is one day above our YTD average and six days higher than September 2013.
  • Median home prices - October’s $214,000 is up 21% from 2012 and about 14,000 higher than the national median price ($199,200).
  • Distressed inventory is significantly lower than last year, and has steadied out around 10%.
  • * Sales pending was down 9% last month compared to last year and 1% compared to September. Watch this number, advises Marc Lebowitz of the Ada County Association of Realtors.
  • New homes sold is down 17% from last year at this time.
  • Inventory is down a mere 1% decrease from September, marking the first decrease of 2013. We sit at 27% more inventory than last year and 52% more than January.

Next month, we’ll address interest rates again, delving in a little deeper into what we can expect. In short, a slow but steady increase is on the horizon. In the meantime, call or email me if you would like to chat about the market or are considering buying or selling a home in Boise.

Sincerely,
Providing you real estate market trends
ShanaFosterMoore@gmail.com
Your Local Boise Real Estate Professional

30th Street Extension to Affect Local Boise Real Estate

Posted by: admin  :  Category: Boise Market Trends, Boise River Community, Community Updates, Foster Boise Communities, Housing Market

Whitewater Park Blvd Opening in Boise

After years in discussion and months in construction, the 30th Street Extension construction project is celebrating a Milestone.

Idaho River Sports, ACHD and the City of Boise are planning a ribbon cutting and reception for the opening of the new Whitewater Park Boulevard on October 24, 2013 at 10 am.

The project will change the traffic flow and is partnered with other value-adding projects in the immediate area south of State Street and West of 27th Street, in the Veterans Park Neighborhood. We have already seen some impact on local real estate and home values in the area.  I expect and hope to see home values continue to climb in this local Boise community that I call home.

Boise Mayor David Bieter and ACHD Commission President Sara Baker will attend the grand opening and speak about the project and future plans for the Whitewater Park Boulevard area.

Location of Ceremony:

Idaho River Sports
601 N. Whitewater Park Boulevard
(formerly 3100 W. Pleasanton Ave.)
Boise, Idaho 83702