Home builders less confident in market

Home builders may be losing confidence in the housing market, now that government incentives that promoted home sales have ended.

According to the Associated Press, The National Association of Home Builders reported Tuesday its housing market index fell to 17 in June.  That decrease of five points came after two straight months of increases, and was at its lowest level since March.

Thanks to the homebuyer’s tax credit of $8,000 sales of new homes jumped nearly 15 percent in April.  That followed a nearly 30 percent spike in March, also the biggest monthly increase in nearly 50 years.

However, that tax credit ended on April 30, although buyers with signed contracts have until June 30, to complete their purchases.

“We are a lot less confident,” said Dan Bailey, president of the Snake River Valley Building Contractors Association.  “Lending is the issue. It is extremely difficult to get a loan, no matter what banks are telling us. Homebuyers are ready to build, have a loan, but can’t get construction financing.”

Many experts believe home sales will slow in the second half of this year.  Two factors that may keep buyers away include high unemployment and tight mortgage lending requirements.

“I very optimistic by trade – I’m a home builder, so, I believe that we are at a comeback,” said Hayden Watson, of Hayden Homes.  “If I look at the national and regional trends with 50-year permit lows, so the basic supply and demands demographics tells me that we’re at the bottom or near the bottom.”

Source:  IBR

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OVER 406 BANK OWNED HOMES FOR SALE IN ADA COUNTY

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