ADA COUNTY JULY STATISTICS:

Below is a snapshot of June’s real estate activity for Ada County:

BOISE:

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Is Housing Affordability Doomed?

Why it’s difficult to own a home for some people.

Can housing affordability still be a possible solution to the growing demands of home ownership of the less privileged?  That seems to be a dream among those whose incomes don’t qualify them for a home purchase.

According to the Center for Housing Policy’s “Paycheck to Paycheck: Wages and the Cost of Housing in America” last year’s workers had a harder time making ends meet to afford a house.  The report states, “While more workers can afford typical housing costs in their community in 2009 compared with 2008, a substantial gap remains between many workers’ salaries and the income needed for housing. Despite lower interest rates, relatively low home prices, and moderate rent increases, many workers are still unable to affordably buy a median-priced home or rent a typical apartment in the communities they serve.

The somewhat higher-paid workers in the green economy – people who make the nation’s homes and businesses more energy efficient and who help to produce clean and sustainable energy – are better able to afford housing than other working families but still struggle with housing affordability in many markets.”

All the while we thought that we’re in a buyer’s market considering the bargain prices in key areas are creating frenzy among hunters.  But the report presents the fact that not everyone is keen to shop around mainly because their incomes spoil their dreams of homeownership.  It further states that “For many U.S. workers the median-priced home is unaffordable even at today’s relatively low prices.  Even many workers in the growing green economy cannot afford to purchase a home of their own.  For workers in more expensive areas, renting a typical two-bedroom apartment is also unaffordable.”

And many would highly suspect that aside from income, there are many factors that can limit one’s chances of owning a home.  For example, a first time buyer may have found a home that suits his taste but if a competing big time investor can match his deal with a down payment higher than 20 percent, there’s no way that a very eager seller would refuse the investor’s tempting offer.

Second, low credit scores still discourage many interested buyers from pursuing what they want because most banks have already raised their qualifying scores for borrowers.  Underwriting requirements are generally stringent these days and improving one’s credit score remains a tough challenge.

Third, the first quarter’s dismal employment figures sent laid off workers into more woeful conditions.  Although we’ve had slight improvements since April, the job market still has to provide a ray of hope for more than 9.9 percent who are out of work.

Finally, the government’s tax credit program may have been successful but it was costly according to the New York Times .  In a report, it says, “many tax policy experts say it has been singularly cost-ineffective: most of the $12.6 billion in credits through end of February was collected by people who would have bought homes anyway or who in some cases were not even eligible… real estate agents say there are at least three others who collected the credit even though they would have bought without it.

That means for each new buyer who was truly lured into the market by the credit, the federal government paid more than $30,000.” And you thought that it was good enough to spur significant economic activity!

source:  broker/agent

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Not real estate but . . . BSU football not headed to the Mt West

After months of speculation, the Mountain West has decided not to expand.

Commissioner Craig Thompson said in a news conference that after extensive discussions, the conference presidents and athletic directors have decided not to expand.

In other words, Boise State is not going to the Mountain West — today.

“After an in-depth review of our membership, we think that due to the uncertainty in the intercollegiate landscape and the potential for significant shifts potentially in the immediate future, the board did not make a decision to expand at the present time,” Thompson said. “The Mountain West will continue to monitor developments and conduct its due diligence.  We’re very thorough in all our discussions and prepare for all scenarios.  Our membership is pleased with the strength of the Mountain West and looks forward to continued growth and development.

“So, the takeaway from these meetings is at this time, on June 7, they opted not to expand.”

It doesn’t take a rocket scientist to figure out what happened here.  Boise State was once the shiniest toy on the block, but with the potential of four Big 12 teams available, the Mountain West wanted to see if they could do better.

“The Mountain West Conference’s decision not to expand is understandable at this time of uncertainty in intercollegiate athletics,” Boise State University president Bob Kustra said in a statement.  “Boise State University remains an attractive school for its academics and athletics.  Any future conference affiliation should support the long-term vision of the university.  The most appropriate action at this juncture is to wait and see how the variables unfold.  The opportunity has not been lost. Boise State will continue to grow, develop and excel as one of the premier institutions in the West, competing and partnering with the Western Athletic Conference schools to strengthen and enhance the WAC.”

This is definitely a stunning turn of events, especially if you’re a Boise State supporter, but Thompson said several times during his news conference that the Mountain West is comfortable with its membership of nine.

Thompson was asked if there was a strong sentiment to invite Boise State to the Mountain West up until last Wednesday when the news about the Pac-10 and Big 12 was released, and he skirted the question.

“I couldn’t say that,” Thompson said.  “I’ve been in constant communication with the athletic directors and the board members, but I wouldn’t go as far as to say that a majority or a number of this or that particularly to answer your question on Boise State.  I think Boise State was one of the institutions discussed along with others and we’re going to continue to monitor the landscape nationally.”

However, Thompson said the matter is not closed.  He said that the board of directors could reconvene via telephone in a couple days, weeks or months depending on the other moves that are made in other conferences.

Remember, if the Mountain West wants Boise State for 2011, the Broncos have to let the WAC know of their intentions by the end of the month.  However, the BCS qualification standards state that any team (could be from the Big 12) that plays in the MWC in 2011 would count toward automatic qualification.

“The topic of expansion is still very much alive,” Thompson said.

So what does Boise State do now?  It’s hard to imagine college football expanding without Boise State, but this is certainly a slap in the face.  Thompson even said that the board was looking at anywhere from staying with nine teams to moving to 16 teams, bytut he also said he wouldn’t object to an odd-numbered conference, which would result if the MWC just invited the four Big 12 teams.  Thompson did note that an even-numbered conference would be better.

“The interest the board had in Boise State going into the meeting probably hasn’t changed going out of the meeting,” Thompson said.

“The sentiment in the room is that we’re in a great place… Expansion is still very much alive.”

Source: ESPN

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Home Improvement Ideas to Avoid

Roof Renovations

If your roof needs repair, don’t hesitate to have the work done. It will be one less issue you’ll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won’t inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.

Home Office Renovations

Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn’t pay off when it’s time to sell your home. Don’t steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.

Swimming Pools

If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you’d be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.

Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don’t expect your home’s value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm.

Unique Builds

Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don’t be tempted to incorporate these ideas into your own home, unless you don’t plan on selling anytime soon. Homebuyers may not share your enthusiasm.

Over-the-Top Renovations

Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it’s bigger doesn’t mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don’t install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads … unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn’t typically do anything to increase the value of the average home.

On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home’s bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Western Home Sales Surge 17%

Below you will find a recent article from the Idaho Business Review–positive news!!

Home sales surged 17 percent in the West last month, as buyers scrambled to take advantage of low mortgage rates and qualify for tax credits that expire at the end of this month.

The median price in the 13-state Western region was $209,400, down almost 8 percent from a year ago, the National Association of Realtors said Thursday.

Nationwide, by contrast, sales of previously occupied homes rose almost 20 percent from March of last year, without adjusting for seasonal factors. The median sales price was flat at $170,700,

Shoppers who have been on the hunt for some time can hear the clock ticking and are trying to make offers before the tax credits run out. Even some people who weren’t planning to buy are jumping in.

First-time buyers can get a federal tax break of up to $8,000, while current homeowners who relocate to a new home get up to $6,500.

Last year, a lot of buyers were afraid to follow through with a purchase because of the economy and the extent that lending had changed.  What we’re seeing now is confidence, as well as acceptance of what types of loan programs are available.

Sales across most major Western metros improved in March, according to The Associated Press Monthly Housing Report, which tallies all home sales in the metropolitan statistical areas. The report, also released Thursday, counts sales filed by all real estate agents, regardless of company affiliation.

All but one of the 13 Western cities tracked in the report saw annual sales increases last month. Boise and Seattle both posted gains of more than 50 percent, according to the report. Los Angeles was the only major city that saw a decline in sales, off 7 percent.

Source:  IBR

To search the MLS real time Click Here
To 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

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 Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Boise metro area above average in terms of negative equity

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 Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here