New construction is moving at a fast pace, with some builders scrambling for new lots to build on! We are even hearing of developers raising Lot prices. If you follow Real Estate trends at all, you will recognize the dramatic importance of that! When lot prices rise, so do home prices. This is interesting and exciting news because existing home prices will rise as well. Giving much needed relief to those home owners who are still “under water” on their mortgage.

Another important factor in Junes Ada County Housing Market Report is the number of “Distressed” sales compared to a “normal” or “arms length” transactions sale. According to the Intermountain Multiple Listing Service, only 26% of all sales in June were distressed! That is truly amazing since the same time last year we were experiencing 47% ratio of “distressed “to “normal” sales. According to Marc Lebowitz,Assoc. Executive of the Ada County Assoc. of Realtors, “of our Distressed Inventory 92% is Short Sales and only 8% is REO (Real Estate Owned- AKA Bank owned Properties). These are solid indications that we are continuing to head in the right direction here in Boise.

Now does this mean we are in full recovery mode? I’m not sure about that quite yet, only time will tell, some still think that banks are holding back properties to see how the market reacts. This is what the media is calling “Shadow inventory”. I am sure that there may be some of this going on through out the state and or in other states, but I really don’t see it here in Boise. Plus, I do list some REO (Real Estate Owned) sales for one of the largest banks in the nation, and when they get a property back from foreclosure, they call me to list it right away! In fact, I know that it is coming weeks in advance and they tell me to get prepared to list and sell it quickly. Now, I don’t do all their listing work in the valley, but I do enough to know that this particular bank isn’t “Holding” on to anything! They want it listed, sold, and off their books. Plus, as I drive around Boise, I don’t see a plethora of vacant homes with dead lawns and no signs in the yard…. Another sign that the “shadow” inventory might not be as big of a deal as some people think, especially here in Boise. Another major factor in today’s Ada County Housing Market Report is the increasing number of Multiple offers on listed homes! This seems to be the norm in today’s market, especially for homes under the $300,000.

As I drive around Boise, I keep seeing more and more Custom homes being built. Some of these are homes being built for a home owner, and quite a few are mid level custom spec’s. These folks are Smart, because they know that NOW is the time to buy land, and build while interest rates and costs are low. Most bankers are very worried about where rates will be next year after the election. No one can predict the future, but one thing is true, we can not hold on to these incredible rates for long! Ada County Housing Market Report shows the following single family sold trends for June of 2012: North Boise 54 Sold – North East 26 sold – South East 61 Sold – Boise Bench 39 Sold – North West 43 Sold. To find out how many homes have sold in your area contact someone with Ferguson Realty Group!

Source: Dave Ferguson Realty