Monthly Facts and Boise Market Trends

Posted by: admin  :  Category: Boise Market Trends, Buying Boise Homes, Housing Market, Local Boise Market Update, Market conditions, Market Trends, Market Updates, Selling Boise Homes, Selling Homes

It’s now officially fall, and the kids are back in school. Have I missed the window for selling my home?

Before waiting another entire year to sell, consider this: August 2015 inventory was down 15.5 percent from last year, and there were 1,279 homes pending sales in August 2015 (up 40.4 percent from the same time last year)—meaning the demand is there.

According to Brenda Kolsen, 2015 President of the Ada County Association of REALTORS®, this decrease in supply and increasing demand “was the reason that many buyers and sellers found themselves in multiple offer situations over the summer.”

Also worth noting is that the current month’s supply metric reflects buyer demand. A typical balanced market is between four to six months of supply. However, this August’s supply metric was down 28.9 percent from last year. For sellers who are still looking to sell in 2015, this is all good news—made better by a median sales price increase of 4.8 percent over last year.

Here’s a closer look at the numbers in our latest monthly market trend indicators update:

Upward Market TrendsTrending Up

  • 837 homes sold in August 2015 (up 12.4% from August 2014)
  • $229,500 median home price (up 4.8% from last August)
  • 1,279 pending home sales (a 40.4% increase from August 2014)
  • 837 closed sales (up 12.4% from last August)

Arrown indicating downward market trends in Boise's housing marketTrending Down

  • 2,504 homes of available inventory (down 15.5% from last August)
  • 2.7 months supply (a 28.9% decrease since August 2014)
  • 45 days on market (down 15.1% from last August)

It’s still an ideal time for house-hunting, too—especially with the inevitable dip in purchase activity that occurs around this time every year. In fact, a recent realtor.com article suggested, “September could be the best month all year to sign a contract to buy a home.”

Since our seasonal peak of 2,512 homes for sale (in June 2015), this number has held steady through the summer, meaning that buyers—especially those considering new construction or homes above $400,000—still have plenty of homes to choose from, and with less competition.

And, given the fact that interest rates remain at near historic lows, the market looks favorable for just about everyone this season. We’d be happy to meet with you to discuss your situation and review the options available to you.

Your Boise Market Trend Experts

2014 Market Trends Report

Posted by: admin  :  Category: Boise Market Trends, Buying Boise Homes, Housing Market, Idaho Real Estate Price Trends, Local Boise Market Update, Local Boise Price Charts, Market conditions, Market Trends, Market Updates, Real Estate, Real Estate & Housing

Was 2014 a good year for homeowners?

“What happened in real estate in 2014 and what can we expect in 2015?”

This time of year, we’re answering questions about the real estate market from a wider perspective, that looks beyond the current month-to-month stats and examines the overall market trends in Boise and the nation. In short, 2014 was a good year for homeowners.

In fact, 2014 was the third year in a row that I’ve had the pleasure of communicating good news about pricing and equity for homeowners. This has enabled owners the freedom to move around a bit. The average price was up about 6% this year, 17% last year and 13% the year before that.

This comes amidst other good news statistics, as well as ongoing and interesting reactions to the Great Recession. For one, there are more renters and fewer homeowners. Data suggests a seeming tentativity to enter home-ownership, despite low interest rates, recent government incentives and an overall upward trend in pricing.

To illustrate 2014 in terms of real estate housing market trends, and divulge what to expect in 2015 we’ve pulled the data below from the 2015 Idaho Real Estate Summit hosted by the Ada County Association of Realtors, and of course, our own client experiences.

Boise’s housing market was not far from the national housing market trends, which are show in this slide from the 2015 Idaho Real Estate Summit. Source: Ada County Association of Realtors.

 

Jobs have the biggest impact on any local real estate market, including the housing market here in Boise. Job growth trends in Boise have been favorable, mirroring the national trends, according to Lawrence Yun, the Chief Economist and Senior Vice President of Research at the National Association of Realtors.

Household net worth also is at an all-time high, reports Yun. Homeowner households tend to be 31-46 times the net worth of renter households, however our rate of homeownership is decreasing. When asked to make forecasts, Yun obliges – his predictions are below the job growth chart.

What’s next in 2015

Lawrence Yun suggests we’ll see:

  • More jobs, as well as a slightly increasing job-quitting rate
  • Manageable mortgage rates, increasing slowly and reaching 6% by 2016
  • Population growth and a pent-up demand for housing
  • Record high household wealth
  • More starts, sales, growth in prices, and transitional/erratic lending policies which should return to “normal” by 2016
  • Improving business opportunities in the commercial sector

On a more immediate and local scale, we’ve seen a winter slowdown following the previous period of rising home prices. Inventory requires patience from our buyers (us too, but it’s my job to be patient). We’re reaching out to sellers, in part because we need some inventory to present to our buyers.

Housing Market Trend Update

 UPUpward Market Trends

  • Sales in 2014 were up in all price points above $160,000, when compared to the previous year
  • Median home prices have been on the rise in Ada County over the past year
  • Jobs are the biggest factor influencing the housing market and jobs in Boise, and the nation have been on the rise
  • Renter households also are on the rise nationwide
  • Existing home sales
  • Boise area housing permits

    Boise real estate price charts

    Source: Ada County Association of Realtors, as presented at the 2015 Idaho Real Estate Summit

 

Arrown indicating downward market trends in Boise's housing marketDOWN

  • Sales in 2014 were down in all price points below 160,000, when compared the the year prior
  • Now, and at the end of 2014, inventory has been down. This can be typical this time of year.
  • Homeowner households and the overall rate of home-ownership decreased alongside an increase in renter households

 

Static Boise real estate market trendsSTATIC

  • There is pent up demand for homes priced below $160,000 – this is a trend that first started being noticed back in 2006.
  • America’s Gross Domestic Product has been low – below 3% for nine years now. This was among the market indicators Lawrence Yun pointed out at the 2015 Idaho Real Estate Summit.

Thanks for reading. All that data leaves me ready for a break to go skiing! I’d recommend you do the same – it’s a beautiful time of year to take off for a spontaneous Bogus Basin visit. If you’re hungry for more market info, or an analysis of how these market trends are affecting your home’s value, please don’t hesitate to give me a call!

Sincerely,

Shana Moore, Your Local Boise Real Estate Professional and source of real estate market trends in Boise Idaho

 

 

Shana Foster Moore,

Your resource for Boise market trends (and more)

 

 

 

 

Cashing In

Posted by: admin  :  Category: Housing Market, Local Boise Market Update, Local Boise Price Charts, Market conditions, Market Trends, Market Updates, Moving in Idaho, Real Estate, Real Estate & Housing, Selling Boise Homes, Selling Homes

Cashing In: The Costs of a Sale

Those accustomed to moving, or 11.7% of the population in any given year according to Census data, seem to understand that moving carries a cost. Buyers understand there are costs involved with buying – down payment, closing costs, initial repairs or improvements and maybe a new couch that fits the new space.

A lesser known fact is that selling a home also carries a fairly standard set of inherent costs. Greg Kester of Pioneer Title breaks it down, “The seller is usually paying for anything associated with the sale, to show they have a sell-able, insurable property where the buyer is usually paying for anything to finance that home.”

Seller costs can be less intuitive, or more surprising, but a good rule of thumb is to budget 8-10% of the price of the sale to be safe.

Seller-paid costs

  • Real estate commissions -this is not a fixed number for all real estate companies, but Buy-Boise charges 6% to sell your home, 1/2 of which is given to the Buyer’s agent’s brokerage
  • Title insurance – also a percentage based on the price (.5% or less)
  • Settlement fees – usually split 50/50 with buyers and $680 or less
  • Unpaid taxes (billed bi-annually), irrigation fees, dues or assessments

Other potential costs to sell a home in Idaho

  • Capital gains tax (if there was a profit, and the home was not owner-occupied 2 of the last 5 years)
  • Seller-paid repairs
  • Seller paid closing costs
  • Transfer of security deposits and rents (for an occupied rental property)

Seller-paid closing costs have been trending up in Idaho. I started noticing it back when the Boise real estate market conditions took a big dip, but the idea seemed to gain traction, even as the market recovered. Buyers find it attractive more so than sellers, who already face some costs of selling.

Buyers often choose this form of negotiation because it decreases the amount they have to bring the closing table dollar-for-dollar in a lending situation. A reduction in purchase price only reduces “cash to close” by a percentage, in financing situations. It also affects the monthly payment ever so slightly.

“Whether it’s a buyers or sellers market can really determine whether buyers are asking for closing costs,” says our Pioneer Title expert Greg.

Costs to Buy a Home in Idaho

  • Down payment
  • Closing costs (loan origination, documentation, settlement fees  recording, pre-paid insurance, etc)
  • Appraisal – paid by the buyer about 60% of the time
  • Home inspection

A home tends to account for our biggest life purchases, and then one of our biggest sales. It’s important to fully understand all the numbers when making decision about selling your home, and evaluating the costs and profitability of a change.

For more information, please don’t hesitate to email me, or comment with your individual questions.

Sincerely,

Shana Moore, Your Local Boise Real Estate Professional and source of real estate market trends in Boise Idaho

Shana Foster Moore

Your Local Boise Real Estate Professional