Boise Home Prices – 3. . . 4. . . 6!

28 03 2012

These are important numbers for anyone interested in Ada County real estate. Here is what they mean: In January the median sales price of a resale home was up 3% over January 2011. A gain, that is a good thing!

In February the Year to date Median was up 4% over 2011. Even better!

Now in March, checking it today just prior to the month’s ending the news is even better! The median sales price year to date is now up 6% in 2012 over 2011. So the national predictions that I have read recently predicting a 4-6% gain in 2012 may well be exceeded!

Why? A combination of two things happening right now here in the Treasure Valley. First there is an extremely low inventory of available homes for sale. Secondly, demand is increasing every year for the last 3 years. Look around at all of the new commercial construction. . . Eagle road, Chinden, Downtown +++ Things are popping.

Buyers are starting to get the message and are moving off the fence. One year from now the home that costs 185 could be close to 200!





January 2011 Treasure Valley Idaho Real Estate Sales by Company

18 02 2011

010111 mtd chart





LOOKING FOR HOPE IN TOUGH REAL ESTATE TIMES

7 12 2010

Inventory Levels Plummet to Record Lows!
New Business Written November 2010 Significantly Higher than 2009!

ADA COUNTY, ID – December 6th, 2010 – Ada County unsold housing inventory in November dropped to the lowest level in 55 months! And there were 27% more new contracts written in November of 2010 than in 2009.

At the end of November the inventory of resale homes stood at 2442 compared to 2929 one year ago. New construction inventory was 580 compared to 744 in 2009. That makes 3022 total. The record high mark came in July of 2007 at 5170. The low was back in the frantic “seller’s market” of August 2005 at 1429.

Jere Webb, a Realtor with Coldwell Banker, publishes his Webb Charts monthly as well as an “Inside Scoop” on the Real Estate Market in the Treasure Valley. He also teaches a 4 hour class several times each year at Title One in Meridian. The next class is scheduled for 2/10/11 at 9am, “Gaining Perspective on the Real Estate Market – 2010 vs. 2011.”

Chart subscriptions and class enrollment are both available on his website at http://www.jerewebb.com.

For media information please contact: Jere Webb at 208-861-2222.





Interest Rates

21 10 2010

Right now the rates are at historic all time lows! The current Freddie Mac rate is 4.35% On their website I just checked the monthly rates and this is a record low. Their chart only goes back to 1971 – 39 years; but there has NEVER been a month before this low!

Smart buyers are calculating this right now more then trying to predict “market bottom.” For example on a $200,000 home loan at this rate the Principle and Interest would be $995.62/month. Total cost in 30 years = $358,423. Now suppose the market price of the house moves up or down 10% before you make a move. Up to $220,000 – $1095.19 = $394,268. Down to $180,000 – $896.06 = $322,581. So about a 36k swing over 30 years.

Now what happens when the interest rate moves back into “normal levels”? The average for the last 39 years is about 9%; but let’s just take 6% for example. $200,000 @ 6% = $1199.10/month = $431,676. That is over $73,000 more! Twice as much increase in actual cost as a 10% swing in property value. Wow!

SMART MONEY is BUYING NOW!!!





June Existing Home Sale Drop 5.1%

23 07 2010

June Existing Home Sale Drop 5.1%
Thursday, July 22, 2010 Fox Business Website

Treasure Valley Real Estate Market – How are we doing In Idaho? The Western Region including Idaho but basically CA since the numbers are so large there was down 9.3%. So the Treasure Valley fared a bit better than that; but here is a more detailed comparison with national numbers.

According to the National Association of Realtors June numbers for RESALE homes in the US:
(This does not include Condos, Townhouses, or New Construction of any kind)

Sales in June were down 5.1% from May
Ada County down 8.2% from May
Canyon County down 4.8% from May
Sales in June were up 9.8% from June 2009
Ada up 4.6%
Canyon up 27.8%

Average Price was up 4.5% from May to $230,900
Ada up 1.6% from May to $186,695
Canyon down 3.5% from May to $111,462

Average Price was up 1.4% from June 2009
Ada down 10.7%
Canyon down 17.0%

Median Price was up 5.2% from May to $183,700
Ada up 4.2% to $159,900
Canyon up 3.0% to $97,750
Median Price was up 1.0% from June 2009
Ada down 8.6%
Canyon down 12.4%

Conclusion: Canyon County lower price point has generated more sales in terms of units. There are regions of the country doing much better than Ada & Canyon right now; but in the West we are holding our own.





Real Estate Life After the Tax Credit

10 06 2010

Well, we all knew that the government was pouring gasoline on the fire to try and make it burn. Now that April 30 has passed we can measure the effect and it is startling!

Looking at Ada County. In April there were about 680 closings and an increase of pending business of about 150. So that means roughly 830 contracts were written.

In May there were also about 680 closings but pendings went down by 350! That means that there were only about 330 new contracts written.  Check me on this; but I think this is right. . .

Wow! And June sure feels quiet as well. This does not look promising. What do you think?





March Home Sales

22 04 2010

I just noticed that the National Association of Realtors is reporting an increase of home sales in March over February of 6.8%  Of course you would expect that March would increase over February.  The good news being touted in the media is that this increase is more than the 5.2% of earlier projections.  Great!  But my next question is how does that compare with our local market?

Well guess what! Ada County was up 68% You read it correctly. Not 6.8; but 68% That is huge!!! Canyon was up 39%.

In all of these stats this is only dealing with resale homes, not new construction. So my continuing sense is that when the market, especially on the west coast, is headed down, we go down at an even sharper rate. But when it goes up, well Ada & Canyon County climb even faster!





Observations of a Real Estate Professional

13 04 2010

On the Treasure Valley Real Estate Market

• Based upon “selling odds” there seems to be a special opportunity for sellers of existing homes in Ada County between $160-199,999.
• Inventory usually goes up from February to March – at least it did in 2006, 2007, 2008, and 2009 (Ada Only); but not in 2010. In both Ada & Canyon County it went down. Yeah!
• Selling Odds are better now for Resale homes than for New Construction.
• Kuna & Nampa markets are both exceptionally hot right now under 300,000 because of the first time homebuyers pushing to get the tax credit.
• So far this year there have only been 5 sales over 700,000 in all of Ada County, none for over a million.
• In Canyon only 2 sales over 400,000 with a huge increase of activity under 100 and even <70.
• Ada sales units are up 34% so far this year; but the dollar volume is up on 21%. So more houses are selling for fewer dollars.
• Canyon sales units are up 66% so far with a dollar volume up only 39% – an even bigger gap reflecting the reduction in pricing.
• As far as a price bottom, all I can say at this point is that the rate of reduction is slowing :o)