Eagle Idaho Real Estate Statistics–March 2010
March 9, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
Below you will find statistics regarding the real estate activity during the month of February:
Closed Sales – February 2009
# Closed: 19
Average Sales Price: $407,505
Median Sales Price: $398,000
Closed Sales – February 2010
# Closed: 29
% Change: +52.6%
Average Sales Price: $380,523
% Change: -6.6%
Median Sales Price: $365,000
% Change: -8.3%%
Pending Sales
# Pending: 77
Average Asking Price: $366,665
Median Asking Price: $335,000
Available Homes
# Available: 330
# Vacant: 120
Vacant Percent: 36.4%
Average Asking Price: $459,420
Median Asking Price: $350,000
Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.
source: boiseblog.com
To search the MLS real time Click HereTo obtain a free market evaluation for your home Click Here
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Meridian Idaho Real Estate Statistics–2010
March 9, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
Below you will find statistics regarding the real estate activity during the month of February:
Closed Sales – February 2010
# Closed: 108
% Change: +31.7%
Average Sales Price: $185,052
% Change: -8.9%
Median Sales Price: $160,744
% Change: -12.4%
Closed Sales – February 2009
# Closed: 82
Average Sales Price: $203,049
Median Sales Price: $183,400
Pending Sales
# Pending: 250
Average Asking Price: $188,249
Median Asking Price: $169,000
Available Homes
# Available: 1,000
# Vacant: 575
Vacant Percent: 57.5%
Average Asking Price: $198,957
Median Asking Price: $174,900
Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.
source: boiseblog.com
To search the MLS real time Click HereTo obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here
Boise Idaho Real Estate Statisics–March 2010
March 9, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
Below you will find statistics regarding the real estate activity during the month of February:
Closed Sales – February 2009
# Closed: 290
Average Sales Price: $209,422
Median Sales Price: $181,625
Closed Sales – February 2010
# Closed: 365
% Change: +25.9%
Average Sales Price: $197,431
% Change: -5.7%
Median Sales Price: $165,000
% Change: -9.2%
Pending Sales
# Pending: 877
Average Asking Price: $203,269
Median Asking Price: $164,534
Available Homes
# Available: 3,684
# Vacant: 1,905
Vacant Percent: 51.7%
Average Asking Price: $240,280
Median Asking Price: $174,900
Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.
source: boiseblog.com
To search the MLS real time Click HereTo obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here
OVER 406 BANK OWNED HOMES FOR SALE IN ADA COUNTY
March 6, 2010 by Matthew Le Baron
Filed under Buyers
As you probably know, there is a plethora of bank owned homes for sale in Boise, Meridian, Eagle, Kuna and Star. Banks are motivated to sell and will typically price these distressed homes 10-30 percent under current market values. Granted, most do need cosmetic work done prior to move-in such as new carpet, paint, lawn maintenanceand other misc items. However, there are some bank owned property which the previous homeowner has taken it upon themselves to leave the residence in nasty shape by taking a sledge hammer to walls and doors along with pulling all appliances like the range, dishwasher, disposal and microwave (sometimes water heaters and furnaces, too). Unless you would like to take on the costs, I suggest bypassing some of the bank owned homes on the market.
It is also important to not look for only bank owned homes. There are numerous non-distressed homes on the market (fair market sellers) that must sell. These homes are priced competitively and do not need the improvements that a foreclosed upon home typically does. With that, it is important to consider the costs of repairs when deciding whether to purchase a home which needs some love (yet is priced lower than the home down the street) or one that is turn key and ready to be moved into.
Bank owned homes will be prevelant in our market through 2010 and part of 2011. Would you like a list of bank owned homes forwarded to you? If so, send me an email with your contact info and I will provide a list of bank owned property currently on the market.
To search the MLS real time Click HereTo obtain a free market evaluation for your home Click Here
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Boise metro area above average in terms of negative equity
March 5, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
Below you will find a recent article from the Idaho Business Review which discusses homes “under water” within our community. In my opinion, the Boise Metro area is above the national average for negative equity because of the dramatic increase in market pricing during the “boom time”. Hence why the “correction” has been so dramatic, as well.
Negative equity soars in Boise metro area
In the Boise metro area, 34 percent of homes are now worth less than what is owed on the residence.
Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.
The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009. In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.
“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” saidMark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”
To search the MLS real time Click HereTo obtain a free market evaluation for your home Click Here
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Recent months cast cloud over post-tax-credit housing market outlook
February 4, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
Home sales around the nation dropped 17 percent in December – with existing homes showing the largest monthly drop in 40 years – but that’s nothing compared to what happened in the Treasure Valley.
The number of homes sold in Ada and Canyon counties fell 31.6 percent (from 832 to 569) between November and December 2009, according to numbers from the Intermountain MLS.
New home sales in the area fared worse than existing home sales did, dropping 33.3 percent in Canyon County and a whopping 59.3 percent (falling from 140 to 57) in Ada County.
Ronda Conger, VP of marketing for Boise-based CBH Homes, said the drop was expected for two reasons. First, December isn’t typically a strong month for home sales, with the holidays taking priority over home buying.
And second, the first-time homebuyer tax credit’s extension took away the urgency previously felt. Where the former deadline for purchasing a home and qualifying for the $8,000 tax credit was Nov. 30, Congress in early November extended that deadline through the end of June (though sales documents have to be signed by April).
“Buyers took a big breath and realized it’s not that much of a hurry anymore,” Conger said. “They’re thinking, ‘We can take our time, enjoy our holidays – there’s lots of time to get to April.’”
But what about after April?
One national economist told the Associated Press the report of December’s numbers “places a large question mark over whether the recovery can be sustained when the extended tax credit expires.”
And that seems to be everyone’s concern.
Some economists, such as Jaret Seiberg of Concept Capital in Washington D.C., are even predicting yet another extension of the tax credit.
Last month, Seiberg told the Wall Street Journal Congress could extend the credit through Nov. 30 or phase it out over six to 12 months.
“We believe a phase-out is most likely because it would benefit housing markets but let Democrats argue they are fiscally responsible because they have designed an exit strategy that weans consumers off the subsidy,” he said.
Optimists say job recovery will pick up where the tax credit leaves off.
“The headwind we face is rising mortgage interest rates,” said economist Lawrence Yun of the National Association of Realtors, “but the compensating factors will be the home buyers tax credit in the first half of the year and increased job creation in the second half.”
For so many reasons, let’s hope those jobs materialize.
**IBR Real Estate
Paramount sells 51 new homes in 2009
February 1, 2010 by Matthew Le Baron
Filed under Sellers
Boise-based developer Brighton Corp. is declaring 2009 a successful year for Paramount, its master-planned community in Meridian.
Fifty-one new homes sold in the community last year, and three new commercial tenants moved in – Walgreens, Edward Jones and Idaho Health Care Association/Idaho Center for Assisted Living.
2009’s residential total was up from 2008, when 43 homes were sold in Paramount. Seventy were sold in 2007 and 108 in 2006, according to numbers Brighton pulled from the Multiple Listing Service.
“We’re very happy with ‘09, and we hope the momentum will continue,” Brighton Marketing Coordinator Angie Dilmore said.
A total of over 400 homes have been sold in the development, where 1,200 homes are planned. It is bounded by Chinden Boulevard and Linder, McMillan and Meridian roads.
*IBR
Lawmaker hopes to spark job creation with private loan fund for startups
January 28, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
A Boise lawmaker is calling for the state to set up a private fund that could make loans of up to $35,000 to startup companies and other growing businesses in Idaho, a move that he says could trigger some badly needed job growth.
Rep. Branden Durst, D-Boise, has been drawing up a bill that would create an independent corporation called the Micro Enterprise Development Association that would be authorized to make loans to companies with fewer than 50 full-time employees.
The association, modeled on similar government-initiated groups in other states, would raise all its money by issuing bonds and notes. It would receive no money from the state general fund.
For each job created at the state annual wage, companies receiving the loans would get a $2,500 break on the unpaid balance. That incentive would be available for up to 10 jobs, or $25,000, though the positions would have to be sustained for an entire calendar year. The association would be repaid from the state’s sales tax account.
The loans would not be dischargeable, which means that they could not even be removed as part of bankruptcy proceedings (similar to student loans).
A seven-member board of commissioners, appointed by the governor, would oversee the association.
Durst, who is the Legislature’s youngest member at 30 years old, answered a few questions about the proposal earlier this week. Here’s a slightly edited version of our conversation:
Q: Can you just explain briefly what this organization would do and how it would be formed?
A: It would essentially be a sister organization to the Idaho Housing and Finance Association, which, as you are probably aware, provides home loans to families. This would be similar in structure, but different in mission. It would provide small business loans to small businesses … loans of $35,000 or less.
Q: How would it be funded?
A: There’s no cost to the general fund. It would be created as what’s known as an independent corporate body politic … just like IHFA. The organization would have the ability to bond, and underwriting their bonds would be a guarantee from the state of Idaho (through) the state sales tax account. I do limit that to 2 percent of the sales tax account, which is like $1.2 billion. It’s limited to just 2 percent of that (or about $24 million) in terms of what it’s allowed to lend or bond against. It, of course, would have the full state sales tax behind it. … That was the same way the IHFA was created. They’ve been able to be successful, and they no longer have that authority.
Q: So I guess this raises the question: why is there the need to create what appears to be another quasi-government agency? Do we need another government bureaucracy?
A: Well, I would take issue with that. It’s not governmental. It’s completely not government, just like IHFA is not considered a branch of government. It’s being supported by the government, but it’s not part of the government. … I do think that it’s important to recognize that job creation occurs most readily at the small business level. The state of Idaho has a strategic interest in investing in those kinds of things as much as it can. That’s number one. Number two, it’s important to realize that when you get an organization that has a specific objective (of job creation), that helps it be more effective in what it’s tasked to do.
Q: So is this specifically modeled on any other organizations across the country, or would this really be breaking new ground?
A: It’s a little bit of both. The state of Nevada was really the first state to pursue micro enterprise development. They provide general fund support to micro enterprise development. Obviously, that’s not available here in Idaho, and even if it were, I don’t think that would make it very far. This is the first example of doing what we’re talking about, on the scale we’re talking about, and that’s important. Much of the state’s economy is still quite rural, and you’ve got people in those rural communities that have skills that can create jobs. … That’s the advantage of doing it this way. It does give the state a really useful tool in its economic development toolbox to create jobs everywhere in the state.
Q: Let’s talk about the politics of this. Do you have any co-sponsors yet?
A: I’ve got the commitment of (the House) minority leader, Rep. John Rusche. It’s in front of the chairman of the (House) Business Committee, Max Black, who is still taking a look at it. I’ve been pretty willing to share it with anybody. … We’re talking about something that’s really different, taking a different approach to Idaho economic development. I suspect, before it’s all said and done, there will be some Republican co-sponsors that will be on board. It’s not just a Republican issue, a Democratic issue. This idea of job creation is something that everybody needs to get behind. … We’re still soliciting input. I’m trying to make this as collaborative and open a process as possible. Everyone I’ve spoken with about the idea has been curiously interested. It’s been good to hear that. … It’s good when you get people thinking. Maybe even if that’s not the answer, you can create something that’s closer.
Q: So, what’s the underlying need here? You’re saying that there’s a gap in the private sector that’s not meeting the needs of small businesses.
A: I think that’s indisputable. The banks would tell you the same thing, and so would the credit unions. And the reason is they can’t leverage capital at that small of an amount. There’s really no profit for them. They do much better when they’re loaning $250,000 to $300,000. These small loans are difficult. It’s hard to get behind someone that doesn’t have that much collateral. You talk to an entrepreneur and that’s what makes it hard to start a business. The only way to fund a small business startup right now is through credit cards, and that’s a pretty daunting task, unless you’re independently wealthy. You’re not going to be successful when you’re doing that with an interest rate of 30 percent. I’d rather give people a chance to be successful.
Q: So just getting back to the politics of this: do you think this has any chance of passing this year?
A: I’d like to think so. I think everybody recognizes that job creation is goal number one. Really we need to have jobs be goal number one. Budgets come and go, but jobs stay. I’ve done quite a bit of the back end work. I’m open to as much feedback as I get. It’s not about who gets credit on this. It’s about trying to find a solution.
Q: Again, just to sum up: why do you feel this is an important bill?
A: We’ve had double-digit unemployment. That’s not a good sign. Anything we can do to get rid of that. That’s why we’re in the budget crunch we’re in. We don’t have enough revenue because we don’t have enough people employed. I can’t think of anything more salient than job creation. Just walk down the street, and I’m sure you can find someone that would love to have a job.
*IBR
How market is faring depends on whether you’re a buyer or a seller
January 25, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
Can the market get any better than this? Can it get any worse than this? Of course the economy will get better by and by and the market will change.
For those looking to lease or buy commercial space in which to operate their business, we feel now is the time to make a deal. For those needing to lease out or sell space they own, now is still a difficult time. Perhaps the best that can be hoped for is to hold on for better times. And for those looking to buy for investment purposes, it’s a mixed bag.
Dr. Peter Linneman, NAI Global chief economist and principal at Linneman Associates, said that the nation’s economy bottomed out in July of 2009. He further stated that the recovery has started at least in the nation as a whole. The housing and auto sectors led us into the recession and will be the last to fully recover. But they too are showing positive signs.
He contends this recession is not a unique event in our history. Certainly it has been rather harsh, but not any more so than those in 1973 to 1975 and 1980 to 1982. So real estate will recover as it did in the past. The vacancy rate will drop, particularly because we have not been building for two years. Rates and prices will start back up after the precipitous fall of 2009. Employment will pick up, albeit slowly.
Nationally, company profits were up each of the last four quarters, prompting a rebound in the stock market. As jobs come back, the economy will pick up substantially and all of this will fuel the commercial real estate market.
To be sure, this is not a normal market. Distressed sales are the norm rather than the exception. But we are working through that inventory. As optimism infects the public, and it always does in this country, prices will continue to rebound and those who miss this market will be looking back at the lost opportunities.
I believe retail will be the first to recover. Location is still the key to this market in which the property’s location, appearance and access are integral to how well the business does. There are only so many great intersections or anchored centers. How many grocery-anchored centers have been built in this valley even in the boom years since 2002? Almost none. If your business depends on traffic past your door, there are only so many good locations. So great retail locations will lead this sector back to health.
Industrial space has traditionally been a tightly controlled commodity in the Treasure Valley. Vacancies are at high levels and there is more flexibility for buyers as to where they locate. But speculative building has not been seen for two years now so the upturn will absorb the vacancy fairly quickly.
Office has never completely recovered since the dotcom bust in 2001. But office rates are below what someone could afford to build and lease out for. Lease rates will increase if just from the inflationary pressure that is bound to flow from the federal deficit.
And the Treasure Valley is still a great place to work and live. Just ask BMC what drew it back here. The population is growing and so will the need for places to conduct business. Look for the first improvements in the office market conditions in desirable areas like Parkcenter, downtown Boise and the Eagle Road and Overland area.
Investments are starting to attract the wise and savvy investors. It will take cash or substantial equity to pick up the best deals. Anyone who still has cash or equity is savvy in my book. Residential lots sold in bulk are at prices less than the improvements costs. Commercial buildings are selling for less than replacement costs. Notes are selling at substantial discounts.
This cannot last. A little staying power here will yield great returns. We will be looking back and asking where did these new players come from. They will be coming from deals they make this year.
So if you have been laid off from your job, this is a recession like no other. But in aggregate this is another in a series of recessions or adjustments. Things will change as they always do but life will go on, the markets will improve and those who take advantage of this downturn will be tomorrow’s movers and shakers.
***
By Ray Frechette
Home Pricing Slow to Recover
January 21, 2010 by Matthew Le Baron
Filed under TrustIdaho.com Featured
The latest report from First American CoreLogic indicates a more pessimistic outlook than previously expressed.
The national real estate data company predicted the U.S. will see further declines in home prices, followed by a recovery in the spring.
But that recovery is now projected to occur later and to a lesser degree.
The national home price index (a system that takes into account price, time between sales, property type, loan type and distressed sales) is expected to be up by just 0.23 percent by November 2010.
In the Boise metropolitan area, the outlook is not much better. Home prices are expected to be up by 0.35 percent in November 2010.
Home prices in November 2009 were down 14.13 percent in the Boise area from the previous year. Nationally, the decline was 5.7 percent in the same period.
Around Idaho, prices dropped 10.98 percent in November 2009 from year-earlier rates. Idaho posted the fifth-largest decline in the nation.
“On average, we are expecting home prices to turn around next spring,” Mark Fleming, chief economist for First American CoreLogic, said in a release. “While the share of REO sales are down, allowing price declines to moderate, there is concern moving forward with the levels of shadow inventory, negative equity, and the ability of modification programs to mitigate this risk.”
*IBR
