Boise Real Estate Blog

Residential Real Estate Outlook

With falling inventory levels, 2011 looks to be a much better year for the Real Estate Industry and buyers and sellers.  The home inventory in Ada County fell by over 1,000 homes in 2010, ending the year with just over 3,600 available to purchase.  Prices fell in 2010, but not like they did in the previous two year when we saw over a 15% decline in values. 

Last years decline was a little less than half of the previous year at 7.4%.  We think we have finally hit the bottom for declining values.  The next hurdle will be interest rates.  With the economy struggling to gather momentum, government spending at an all time high and now perhaps gridlock in congress we could be in for a rise in rates.

Will 2011 be the year to see recovery in the residential real esate market?  Read what the experts at the National Assoication or Realtors has to say.

Residential Real Estate Outlook

Excerpt from Fannie Mae's "Ecomomics and Mortgage Market Analysis"

With the banking sector still largely frozen in terms of credit extension, the Fed has been aggressively expanding its balance sheet again. In particular, it has been focused on the housing sector, which remains central to the recovery. The Fed has ramped up its purchases of both GSE debt andmortgage-backed securities, and is again growing its balance sheet. The Fed’s purchases have more than offset the decline in purchases by foreign investors. It also has been purchasing longer-term U.S. Treasury securities in an attempt to bring down longer-term interest rates.

 

 

Rates have fallen as a result and this has kick-started refinance activity in the market. The Mortgage Bankers Association application index for refinance applications has leaped with the decline in rates, and volumes of loan production have risen substantially. There has been a modest rise in purchase applications as well. However, purchase lending activity is substantially less interest-rate sensitive than refinancing.

While home sales have been searching for a bottom and there have been numerous statements of optimism and some data for support, the bottom has probably not occurred, though it is closer. Several monthly indicators had a good month recently, including builder optimism.

 

Nonetheless, it is worth noting the dramatic shares of recent months’ sales that are attributable to short sales and foreclosure sales among the existing home sale data from the National Association of REALTORS®. In March, more than half of existing homes sold were distressed sales, and there isnot yet evidence of a turning in the rate of foreclosure. Thisdifficult to track because at last count nine states and a number of counties and municipalities, plus individual companies,had foreclosure moritoria in place.

 

The trouble in the single-family market which has generated a huge supply of vacant and for sale owner-occupied homes is starting to have some impact on the multifamily business. While recessions always impact multifamily properties as household formation rates decline and rent hikes slow or fall, this cyclical turn has the added pressure from the abnormal events in the single-family world. Average rent fell as vacancy rates topped 7 percent in the multifamily market in the fourth quarter of 2008.

 

Doug Duncan and Molly R. Boesel, Economics and Mortgage Market Analysis, April 8, 2009 

 

Are REO’s (bank owned properties) a good buy?

Are REO’s (real estate owned) a good buy.  Most lender or bank owned properties are extremely good buys.  When a homeowner stops making their payment for three months, they will receive a notice of default from the lender.  The homeowner has 120 days (in the State of Idaho) to make up the back payments and penalties, or the bank will start foreclose.  Short Sales are an option for the homeowner if they are willing and able to cooperate with the bank and qualify for a hardship.  Any offer on the property, even one for less than is owed, stops the foreclosure process as long as the seller has not declared bankruptcy.  If the bank forecloses on the property, they will usually make any necessary repairs, especially if the property is listed with a broker, and will still sell for less than is owed on the property when the market is declining.

Dan Frison, Realtor, Advantage Real Estate Team - Keller Williams Realty Boise

Getting Your Home Ready For Fall

To Quote an aritcle in from the Home and Garden Center "Fall is coming fast, and while we like to think of our great kitchens and the bathroom remodel on the horizon, fall is maintenance time. You not only need to check the roof before the wet season or make sure the windows will hold the expensive energy, but also prep the lawn for the dormant time, winterize the sprinklers, clean the gutters, you name it."

This featured article is definately full of great tips and has a short list of items that need checked out or considered as Boise rolls into the fall season! We hope you find them useful. Check out the article here

Home Makeover Experience with Clients

Over the past, few weeks I have been helping a client purchase a home on the Boise Bench. Once we were under contract my client Victoria confided in me a few concerns she was having. Victoria had always wanted to have a decorated home, but felt completely inexperienced and unable to do it her self. So, I explained a little about where to start with the process and narrowed down a theme.

Having no prior experience and feeling unsure Victoria asked me if I would just do the decorating project. I asked her how much we had in the budget and got started. After gathering all the supplies and purchasing all the items I made Victoria leave the house. My friend Melanie & I decorated the house and got everything in place before we allowed Victoria to see it. We brought Victoria in to the house to see her reaction to our version of the extreme makeover. All the time and hard work was completely worth those few minutes of watching her expressions as she fell in love with a home she had always hoped for. As a real estate agent, it was really rewarding to be able to put such a personal touch into my client’s home and help her have an even better first time home buying experience.

Katie Van Tassell, Boise Real Estate Agent with Dan Frison’s Advantage Real Estate Team