Boise Market Trends – Housing Update

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

Real Estate Market Cool Down

We’re coming off the hottest summer the Boise real estate market has seen since 2006, based upon the number of homes sold and their prices. More than 800 homes were sold per month for four consecutive months this summer, followed up by 683 in September.

Single Family Home Sales Chart. Source: Ada County Association of Realtors

September’s seasonal slowdown was predicted by the Ada County Association of Realtors (ACAR) who provides this data. Homes sold numbers are still 20% higher than last year at this time. Of those sales, 129 new homes was the same in September 2012.

Ada County Median Home Price Chart. Source: Ada County Association of Realtors

Median home prices had climbed to $200,000 in August and were predicted to start to stabilize at $195,000-$200,000, according to the Ada County Association of Realtors (ACAR). This prediction hasn’t changed in the last month.

Source: Ada County Association of Realtors

The Government Shutdown Is a Factor

Boise’s real estate market has done better than national trends, although it is subjected to the same national influences. The government shutdown will change forecasts.

Fortunately, there are automated systems in place for loan processing at Fannie, Freddie and FHA, which have kept loan delays slight so far.

“The shutdown is delaying home sales and approval of loans because lenders rely on government data, such as verification of borrowers’ income, that aren’t available,” the LA Times reported this week. Availability of tax returns and ability to sell loans to Fannie and Freddie has been affected, as have improvement and reverse mortgage loans by FHA.

Twenty five percent of realtors cited deals falling through due to the government shutdown, in an informal survey or Realtors at the IAR Convention, according to ACAR and NAR.

Real Estate Market Trend Indicators

  • Sales pending - Down 12% from 2012 and 15% from August – let’s watch this number.
  • Investor purchases - Mine are down, and nationally they’re predicted to slow down
  • Distressed inventory – 10% is down 21% from last year and 1% from August 2013 (ACAR)
  • Prices – They’re down from last month, but up from last year.
  • New home sales - 129 is consistent with 2012
  • Days on market - 46 is even with last month and down from last year’s 64.
  • Home sales - 683 is up compared to last year and down 18% compared to last month, as seasonally expected.
  • Prices - Median, new home and existing home prices are up 11-14% from 2012, although down slightly from August.
  • Inventory - At 3.2 months of supply, the number of homes for sale is up 12% from 2012 and 4% from August.

Active Inventory Chart. Source: Ada County Association of Realtors

Fall is a great time to catch up over a coffee. Please don’t hesitate to let me know if you’d like information or a coffee conversation about specific real estate market trends in Boise. I‘m happy to discuss real estate strategies, as they relate with the current market.

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

Local Boise Market Trends

Posted by: admin  :  Category: Local Boise Price Charts, Market Trends

The local real estate market in Ada County continues to outpace the national recovery, which also has been strong. Home sales and home prices are on the rise and being named as significant factors in the overall economic recovery. Economists advise cautionary behavior and paying attention to the market, when asked about the threat of another bubble. “As long as markets continue to see inventory shortages, home prices will continue to rise, not a healthy development if household income gains don’t keep up,” according to an ACAR bulletin.

HOME SALES CHART

According to the Ada County Association of Realtors (ACAR), April saw an increase in single family home sales of 7% over a year ago and Year-to-Date sales in 2013 were up 3.8% over YTD 2012 sales. Homes are also selling faster – an average of nearly two week’s faster in April than in March.

Home sales are up. Source- acarwatercooler.com/

 

See ACAR’s report

ACTIVE INVENTORY CHART

Other important (and exciting!) trends:

  • New homes sales increased 34% compared to a year ago and existing homes sales were up 1.5%. This is an important reversal of the trend in January through March, which saw existing home sales lagging behind 2012.

  • April sales increased by 27% over March sales. This is the strongest April over March sales increase since 2001 (historically, April sales increase by 9% from March). Is this a teaser of things to come?

  • Median home sale prices are up 18%, with Ada County’s median home price at $187,000 in April, more than the national median price of $184,300.

Inventory is lower and time on market is shorter. Source- acarwatercooler.com/

 

MEDIAN PRICE CHART

According to Marc Lebowitz, executive director of ACAR, “When we look back on 2013 we’ll say that: “the Spring of 2013 was the best in seven years”.  REALTORS® have seen it coming…but your buyer clients are absolutely overwhelmed right now. They can’t keep up with your pace. They don’t understand where all the houses went. They can’t believe that a full price offer won’t get them the home of their dreams. They need you now more than ever.”

The builders are back! Source- acarwatercooler.com/

I am here for you! With an emphasis on effective marketing, promotion and staging, I will help you put the market-ready touches on your home so that you get the best price possible. And if you are thinking of buying, as my previous clients will attest, I pride myself on my knowledge of the market and my ability to match the just-right buyer with the just-right property. Please don’t hesitate to pass my contact information to any friends in need of a well-informed real estate resource to plan their next steps.

Sincerely,

ShanaFosterMoore@gmail.com

Your Local Boise Real Estate Professional

Headlines From a Changing Market!

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

Headlines From A Changing Market!

“It’s becoming a seller’s market,” according to our local, reliable source, Ada County Association of Realtors (ACAR). “Home Prices Finally Returning to Normal,” says CNN Money and “Boise is #3 Metro Leading Housing Recovery,” reports Forbes.

Notice the purple bar in Ada County’s median home prices chart. Source: Ada County Association of Realtors

The 35% increase in median home prices from January 2012 to January 2013 is graphically depicted by ACAR may not apply to every home and individual value yet, however it serves as an indicator.

My buyer responses and actions seem to translate this indication as a “last call to buy your home.” I’ve been busy and loving it, wishing only that there were more homes on the market to show them.

The small, blue X marks the inventory at the start of 2013.
Source: Ada County Association of Realtors acarwatercooler.com

One thing fueling the market shift is a notable shortage in supply. “Homebuyers are back. Where are the houses?” ACAR tweets. First quarter of 2013 has shown us the lowest inventory since 2001.

As buyers trade, upgrade and shift, one common question keeps arising, “Should I keep my current home or not?” Of course, I’d love to help you buy AND help you sell, but. . . not so fast. There are market factors that support selling your current home. Renting is another option that could boost your overall profits.

Thinking of Renting out Your Home?

I strongly support and agree with considerations to hold onto your existing property for a bit longer if you can, even if you’re buying a new one. The real estate market has been trending up and the rental market is holding strong. I would speculate that there is room for continuing upward trending. Another double-digit value increase wouldn’t surprise me, given the indicators mentioned above. I also believe strongly that accumulating real estate is an effective financial planning path.

Plan Your Exit Strategy

Watching the market and planning your exit strategy is something critical to include in your thoughts now. Be calculated. Commit to when you’ll reassess and keep it short-term– say before your owner occupancy benefits expire or when market indicators suggest a shift in appreciation. (I’ll keep you posted of that.) Then re-asses your plan and either cash out at that point or commit to staying in for long haul if the market changes.

Owner occupancy for two of the last five years saves you from paying taxes on the profit (a capital gain).

Keep reading, as we delve deeper into the considerations to face, when holding onto your home as a rental. In the meantime, plan ahead and start watching the market early if you’re thinking of buying. If you’re thinking of selling, or know someone who is, contact me. I have buyers and lots of friends with buyers.

Sincerely,

ShanaFosterMoore@gmail.com
Your Local Boise Real Estate Professional

 

Distressed Inventory Downturn

Posted by: admin  :  Category: Bank Owned homes, Local Boise Price Charts, Market Updates, REO, Short Sales

Distressed Inventory Downturn

Ada County’s distressed sale inventory has not only shown a fairly steep decline, the homes also are selling sooner in the process. We’ve experienced a complete flip from one year back, when there were more bank owned properties than short sales listed in our distressed home sales.

Recently, short sales outnumbered REOs 3:1, and then climbed back up to 3:2 according to monthly sales reported by Ada County Association of Realtors. REOs are bank owned properties that have passed the short sale point, gone through foreclosure, gone to auction and come back on the market as bank owned.

Some speculate that we are clearing out the shadow inventory. I interpret it to mean equity seekers searching the distressed home inventory need to adjust their shopping habits and expectations to match the market (and I can help with that part).

 

Source: www.acarwatercooler.com

Shopping Short Sales

If fewer homes are becoming bank-owned or REO, it’s time to either look elsewhere or look sooner in the foreclosure process. Many a very PATIENT person or investor has been doing that – watching for short sales, signs of short sales or even public notices of sale dates to get in “pre-foreclosure.” They are approaching distressed homeowners (in droves) with an offers 20% or more below market value that will help them avoid foreclosure. This approach to buying is not just time consuming –it’s still not a sure thing. Resources like the Realty Bargains website could make it easier to locate pre-foreclosure distressed properties.

Remember, short sale offers take a long time and often don’t yield a favorable response (if they yield a response at all). Getting offers in very soon after a short sale hits the MLS is advisable, if you find one you like.

To each his own.   Source: www.fosterboise.com

If you’re looking and your expectations on this process are realistic, I’m happy to tackle the additional work, follow up and time it takes to chase a short sale. The bright side is, you can still shop while you’re waiting for a response to your offer (a much less common practice with faster-moving, traditional offers).

Better Time to Sell

Distressed sales affect local home values, so as the number of distressed sales decreases, homes values may level out to reflect more non-distressed prices. This, combined with an inventory shortage, is good news for people who have wanted to sell, but couldn’t face market prices of January 2012.

If you have a home to sell, even If you’re distressed and looking for an “out,” I have a lot of buyers looking out for good homes right now and inventory is low. Either way, I’m at your service.

Thanks for reading!

Sincerely,

Shana Foster Moore,
Your Local, Boise Real Estate Professional

Bottom’s UP in Ada County

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

Real Estate Price Graph; Real Estate Price Charts; Real estate median prices by county; Housing market pricesBottom’s Up in Ada County

In case you didn’t get it, here is “The Memo.” Local Boise Real Estate prices and sales have hit the bottom and are back on the rise. Median prices of brand new homes remain static. The ONLY notable downward trend is among the number of distressed homes on the market, particularly REO/bank owned properties.

If you’ve been waiting for the right moment to buy, you’re certainly not late and homes are still affordable, however waiting won’t buy you more home for your dollar. In terms of investment property pricing, cash flow is still accessible with the 25% down payment that lenders typically want to see. On that note, the rental market has been strong.

Local Real Estate Prices Up from 2011 (in Ada County)…

Real Estate Price Graph; Real Estate Price Charts; Real estate median prices by county; Housing market prices
Source: Ada County Association of Realtors http://t.co/n75iuXuq

At $173,000, July median home prices were up 14% from last year at this time.

The most desirable price point was $120,000 to $160,000, which comprised 27% of total sales in July. At 19% of all sales, the next largest price point sold is $160,000 to $200,000. Sales in the higher priced inventory $300,000 to $500,000 decreased by roughly 10%.

Contact Shana Foster Moore for pricing specifics on your neighborhood of interest, or to check into the value of a specific home.

Inventory as an indicator…

Real Estate Price Graph; Real Estate Price Charts; Real estate median prices by county; Housing market prices
Source: Ada County Association of Realtors

If you’ve been contemplating selling, inventory levels also are on your side. We have less than 3.3 months supply on hand overall. For nearly two years, our local Boise and Ada County real estate inventory levels have been significantly lower than national average. Small blessings.

The lower priced homes are in shortest supply. We’re in the 2 month range for homes priced below $159,99, and all price points below $400,000 have less than 4 month’s supply. “Single digit increases in sales and double digit increases in pricing for the year” have been forecasted by Marc Lebowitz, Executive Director of the Ada County Association of Realtors.

Inventory levels like these have me searching for more sellers to represent. It’s nice when the market can be added to the factors I can control e.g. applying diligence, good knowledge, strong negotiation skills, etc. As always, I work hard for you and your referrals.

Thanks for reading! Sincerely,

Shana Foster Moore,
Your Local Boise Real Estate Professional
Sources:
http://acarwatercooler.com/2012/08/13/ada-county-real-estate-market-continues-its-blistering-pace/
http://www.zillow.com