Spring 2013 Market Update

Posted by: admin  :  Category: Market Trends, Market Updates, REO

Hot Summer in Boise

“We now know for certain; ‘the Spring of 2013 was the best in seven years’,” according to the Ada County Association of Realtors (ACAR). Continuing to outpace the national recovery, the local real estate market in Ada County is experiencing the biggest growth in years with home sales and home prices on the rise.

In Ada County, single family home sales increased of 32% in May 2013 compared to one year ago. New home sales increased 17% and existing home sales increased 36% – the highest year-over-year increase in many years. May 2013 sales increased by 16% compared to April, the strongest May over April sales increase since 2006.

Sales on the rise mimicking month-to-month trend lines from 2006. Source: ACARWatercooler.com

Not only are we selling more homes, but we are selling them faster and at higher prices. On average, homes sold about two weeks faster in May than in April.

The median home price was up 8% from 2012, reaching a level untouched for the last five years. Source: ACARWatercooler.com

The median home price rose 8% from one year ago to $195,000, again above the national median. This is the first time in five years that the median price is above $190,000. For new homes, the median price for May was $272,425, up 18% from a year ago. This may be due to increased material costs, according to ACAR. For existing homes the increase was 9%.

Active inventory remains low. Source: ACARWatercooler.com

One reason for the continued rise in home price continues to be low inventory. While inventory is increasing and the percentage of distressed inventory is decreasing, overall inventory remains low. This means that the median home price will continue to rise well into 2013 and the competition is stiff with multiple offers for each home.

The number of distressed sales is down 9% from 2012 and decreasing. 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.

Warmly,
Shana
Shana Moore, Your Local Boise Real Estate Professional
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