2022 Boise Idaho Real Estate Blog

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Jul 23

People are always asking me what the market is doing in real estate and I keep saying “It Depends”. Anyone that gives a quick answer to such a broad question should be dismissed immediately.
The old proverb of “location, location, location” is still true. You can look at a snapshot of just the market in Eagle and draw a very different conclusion than if you looked in Kuna. Even the nine different MLS areas that make up “Boise” will provide drastically different answers. But since my blog is based on “Ada County” the following numbers are averages for the entire county. I would be glad to research specifics if you need them.
The quick good news is that every single market segment (homes, condos, mobile homes, etc.,) showed improvements over the first quarter! For example, we sold 388 more single family homes in the second quarter than in the first. Although these numbers are still below 2nd quarter 2007 numbers, it is nice to see the market shifting positive.
Of the 1,691 homes that sold in the second quarter of 2008, 27% of them were brand new homes. That is about the same ratio as it was in the 2nd quarter of 2007; however in 2006 that ratio grew to 39% of the homes sold were new since we were busy trying to cure the appetite of all the investors moving their money to Idaho.
According to the Construction Monitor, building permits have also increased in the past two consecutive quarters. This is the first time we have had back to back increases since 2005!
Keep in mind that effective today, there are still 5,682 active listings (not counting the 883 that have offers waiting to close). Even though that sounds like a lot of homes, even with all the negative publicity in the first half of the year, we still managed to close 2,972 houses so we currently have about a year of standing inventory at this rate. I don’t expect sales to be at the level they were in the second quarter of 2006, but using that absorption rate, we would only have five months of inventory!

That is the interesting thing about analyzing the numbers, if you know what you are doing, you can make it sound the way you want. Samuel Clements “Mark Twain” is one of my favorite authors and that was before I realized that he was the one that said “Figures don’t lie, but liars figure”!   Look at the statistics including historical perspectives, not just a snapshot, before investing your money or deciding to sell.

Jul 09

Event will occur in October, but the deadline to apply for one of the 40 homes to be showcased ends this Friday!

Jun 25

In these crazy days, it is critical to start asking the tough questions before you are left with someone else's problem after they go bankrupt!

Jun 08

As requested, I did some research on new construction vs. resale. It really isn’t possible to look back to see exactly how many houses were listed as “Active” this time last year to compare to this year, so I usually base it on sold numbers. I looked at the new construction numbers and as suspected, found the largest price reduction was in the new homes.

As many people here realize, lot prices have dropped about as quick as they jumped, so the replacement cost of a new home has dropped accordingly. That coupled with the fact the new homes are sitting, costing the builders money each month with no functional utility, they are the first to get discounted when times turn slow.
The ratio of new home sales hasn't really changed much as both 2007 and 2008 ran just over 25% new home sales. Of the active listings, just over 19% of them are new homes.
In May 2007, the median sold price of a resale home in Ada County was $215,000 compared to $285,500 for a new home so just over $70K more for a new home. In May of 2008 however that spread dropped to only $10K!
I was surprised to see the median price of a new home closed in Ada County in May of 2007 was $285,000 compared to $209,900 in May 2008. Many things come into play on that including the fact builders are building more affordable size homes on less expensive lots and including less to start with.
I can't understand that with these types of numbers why some sellers are still sticking to 2007 mentality. I guess maybe they think gas prices are going up so their house price should too? WRONG. 
In Ada County today, there are 4,607 homes listed for sale excluding homes that show as pending; which have yet to close. The average list; is $318,215 and the median price is still listed at $254,900. These numbers are well above the market. The homes that are being price based on today’s market are still selling. Of these 4,607 homes, only 893 are new homes.
I spent nearly four hours today one on one with Chuck Byers, the former head of the Pioneer Real Estate School, discussing pricing models, valuation, and appraisals. I agree 100% with his comment that in a market like this, you need to determine your motivation to sell and figure out what amenities you have compared to the competition. He emphasized looking at all the variables including your motivation/need to sell and set the price accordingly!
Too many people think they should price the home a little high to allow room to negotiate down. Stop and think for a moment however, if you were the buyer, and you liked two or three homes offered for sale, would you ever start negotiating on the higher price one hoping to get it below the lower priced one?  If you start negotiating on the lowest price one and the counter comes back full price, isn’t it still the best priced?  Won’t it still sell?

Jun 06

Would you believe you might actually be better off if you sold your home this year and bought a new one instead of doing it last year when you could have gotten more for your home?

Jun 06

It appears the Ada County Association of Realtors will be the first Realtor Association in the nation to lauch a major advertising campaign to utilitze the new Digital Billboards!

Jun 04

As a Realtor, for 16 years, I am used to people thinking the average Realtor is a millionaire, since they are in the "Million Dollar Club". As Paul Harvey would say . . . "And now, the rest of the story."

May 01

Progressive Realty Corporation is finally approved by all entities and open for business to serve your real estate needs.

Feb 02

As we get ready to gear up for the spring real estate market, it is time for builders and developers to be aware of different marketing plans to see who they really are geared to.

Jan 20

I have closed homes with over 50 separate builders in the Treasure Valley, so I have learned a few things on how to get them to finish what they started.

Jan 14

With the mortgage meltdown, it appears even this industry icon couldn't withstand the heat.

Dec 17

The Ada County Association of Realtors has over 4,000 members. Jim Paulson was elected to serve as 2008 Vice President.

Dec 09

With property taxes being due no later than December 20th, it is time for an update on what has changed. People are always complaining of higher taxes; however there has been very little press about the changing in the tax calculations in Ada County. 
For homeowner’s actually living in their home in 2007, the homeowner’s exemption allows for a 50% exemption of the improvements (house not lot) up to a maximum of $89,325. For example, if you live in a $300,000 home with a lot valued at $75,000, your taxable value would only be $225,000. Investors get to pay taxes on the full $300,000.
For 2008, the news for homeowner’s is even better. The Ada County Assessor has increased the exemption up to a maximum deduction of $100,928. Therefore, in 2008, the same home with a homeowner’s exemption will only have a taxable value of $199,072!
Being a skeptic, I figured they were increasing the tax levy codes to offset this new deduction, but I was glad to be wrong. Property value increases allowed for a decrease in the levy rates. Every single tax levy code throughout Ada County had a decrease from 2006 to 2007 ranging from roughly 5 -12%. Ada County 2007 tax levy rates (by code area) range from about .008 - .014. Keep in mind that there are separate taxing districts and 99 unique tax levy codes in Ada County.
To try to put all this in perspective, I pulled up my own home in SW Boise. In 1997, I was paying $1,152 in taxes for this property which in 2007 has a tax burden of $1,625. This is only a difference of $473 a year while the property value has appreciated over $100,000. On my home, my taxes are less than $1 a month higher than in 2005. I can live with that rate of increase.

Dec 03

It is past time to start your 2008 business plans! Don't just talk about the market, react to it!

Nov 29

Turn your TV's to KIVI on Channel 6 @ 7:50 AM November 29th for his perspective on the Boise area real estate market!

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