Boise (Ada County) Real Estate Market Report for March 2013

March was another interesting month for Boise Real Estate as prices continue to soar and inventory remains very, very low.  The average price per square foot rose 19.4% to $107 while the average sales price rose 28.3% to $222,000 versus 2012.  It is tempting to say this is the beginning of another bubble because prices rising that quickly are unsustainable.  However the rise in prices is still somewhat misleading as we continue to shift the product mix of what is selling away from lower priced distressed properties and towards new construction and “traditional” re-sales.  If you look just at non-distressed properties the price per square foot was up only 11.9%–still very positive but not quite as scary as 19.4%.  I think that 11.9% number is a much truer reflection of what the average home’s value has risen in the last year.  New construction average price per square foot was up 7.6% reflecting not only strong demand but also rising prices for materials.

 

Inventory, at 1892 units continues to be as low as it has been in many years and this is certainly helping to pressure prices upward even as we start to compare to some pretty strong numbers from 2012. Overall inventory was down 7.2% mainly due to the sharp drop in short sale inventory (-45.7%), while REO inventory actually shot up in March  but on a very small base (3.6% of total inventory). Looking at months of available inventory we are at 3.2 months overall, but only 3.0 months for non-distressed properties.  Remember, 6 months is considered a stable healthy market. Average days on market for non-distressed properties has also dropped significantly to 74 days (-21.3%), compared to 188 days for short sales.  Apparently that process is still taking as long or longer even as their numbers dwindle.

 

Market Stats for Ada County Single Family, Condo, and Townhomes:

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Average

Days on Market

% +/-

Months Inventory

All

591

+0.7

100

1892

-7.2

100

$107

+19.4

$222K

+28.3

86

-12.2

3.2

Non Distress

492

+36.7

83.2

1500

+6.0

79.3

$110

+11.9

$230K

+18.6

74

-21.3

3.0

REO

29

-74.3

4.9

68

+119.4

3.6

$96

+33.2

$221K

+72.7

58

+13.7

2.3

Short Sale

68

-40.4

11.5

320

-45.7

16.9

$86

+11.9

$160K

+4.6

188

+18.2

4.7

New Construction

139

+43.3

23.5

606

+2.9

32.0

$116

+7.6

$259K

+19.4

110

+3.0

4.4

 

Not surprisingly, as prices have increased over all the sweet spot of the market has moved up as well.  It had been hovering around $125K and it now seems to be more in the $175K range as the table below illustrates.  Also of note is the sharp drop in the number of sales under $150K and the corresponding sharp increase in the number of sales above $150K.  Even the “high end” of the market is showing vigorous growth—sales of homes priced above $500K in March were up 118.2%!

 

Price Range

# Sold

% Change from 2012

% of Total sales

< $100K

40

-64.3

6.8

$100,000-149,999

142

-23.7

24.0

$150,000-199,999

161

+30.9

27.2

$200,000-299,999

139

+25.2

23.5

$300,000-399,999

70

+105.9

11.8

$400,000-499,999

15

+50.0

2.5

$500,000 +

24

+118.2

4.1

 

While low inventory is hampering some buyers, it is still a great time to buy as interest rates remain solidly below 4%.  Buyers should be prepared for multiple offers, price escalations, and/or bidding wars on the most desirable properties but it may be worth jumping into the fray sooner than later as prices are definitely still rising and interest rates are forecast to be as much as a full point higher by year’s end.

 

Your questions, comments, and above all, referrals are always appreciated.  Bring on Spring!

 

Graphs below for those interested in more details

 

 

 

 

 

 

 

Facts and Trends

TM

Published April 2013*

Location:

  ADA COUNTY

Price Range:

  $0 – No Limit

SQFT Range:

  0 – No Limit

Property Types:

  Single Family, Single Family w/ Acr, Condo, Townhouse – All Properties – All Properties – All Properties

Bedrooms:

  0 – No Limit

Bathrooms:

  0 – No Limit

Year Built:

  0 – No Limit

Prepared for you by: Cam Johnson

 

Number of Homes For Sale vs. Sold vs. Pended (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

For Sale

1892

1811

4.5%

1892

2038

-7.2%

1822

2118

-14%

Sold

591

508

16.3%

591

587

0.7%

496

501

-1%

Pended

874

624

40.1%

874

743

17.6%

690

653

5.7%

 

Average Price per SQFT (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Avg. Sq. Ft. Price

106.7

103

3.6%

106.7

89.4

19.4%

105.1

87.8

19.6%

 

Avg CDOM & SP/Orig LP % (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Avg CDOM

86

88

-2.3%

86

98

-12.2%

84

104

-19.2%

Sold/Orig LP Diff. %

97

97

0%    

97

96

1%

97

95

2.1%

 

Average Price of For Sale and Sold (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Avg. Active Price

293

288

1.7%

293

266

10.2%

289

253

14.2%

Avg. Sold Price

222

202

9.9%

222

173

28.3%

212

172

23.3%

 

Months of Inventory Based on Closed Sales (Jan. 2012 – Mar. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Mar. 13

Feb. 13

% Change

Mar. 13

Mar. 12

% Change

Jan. 13 to Mar. 13

Jan. 12 to Mar. 12

% Change

Months of Inventory (Closed Sales)

3

4

-10.2%

3

3

-7.8%

4

4

-13.1%

 

 

 

If your email program is not displaying the chart graphs properly, please click on the following link which will take you to a web page that contains the graphs: Show Chart

*All reports are published April 2013, based on data available at the end of March 2013. All reports presented are based on data supplied by the Intermountain MLS. Intermountain MLS does not guarantee or is not in anyway responsible for its accuracy. Data maintained by the Intermountain MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

 


Posted on April 24, 2013 at 10:27 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Boise (Ada County) Real Estate Market Report for February 2013 By Cam Johnson

For the second month in a row the number of closed sales was slightly lower (-2.4%) than a year ago but pending sales continue to be ahead of 2012 (+4.8%). I believe the low number of closings is more a function of very low inventory (-14.3%) than the number of willing and able buyers. The other trends we have been watching unfold over the last year: dramatically increasing prices, a new construction renaissance, and the sharp drop in distressed sales all seem to be on track. I do expect the percentage increase in prices to level off somewhat in 2013 as we start going against some of the 2012 numbers when prices started to take off. For example the average sales price in February was only up 15.9% (Only!!) compared to +27.1% in January, and prices actually dropped slightly in February from the previous month. I think you will continue to see the year over year price increases get smaller and hopefully they will plateau in the 7-10% range. Prices normally do rise somewhat as the Spring selling season gets going so February’s slight drop from January should not be of concern.

 

New construction continues to flourish and represented 21.9% of the total sales in February, more than Short Sales and Bank Owned combined. Prices for new homes also have started to take off and were +16.2% from a year ago. Over a third of total inventory is now new construction but the days on market for new homes has dropped 21.3% indicating sales are brisk.

26 Bank owned properties sold in February (-76.4%) and they are now just 5.4% of the total closed sales. Similarly, short sales have also dropped way off to 68 closed sales (14.0% of total).

 

Prices for distressed properties continue to drag behind traditional sales and new construction and are also not showing the gains that the rest of the market is seeing. Prices for Bank Owned properties actually dropped 5.3% from a year ago while Short Sale prices were up a measly 1.7% compared to $15.9% for the market as a whole.

 

It’s too early to tell whether Sequestration and other anxiety inducing macro-economic conditions will have a significant effect on the Boise market or not. There seem to be plenty of buyers for now and if interest rates stay low as predicted I think we should continue to see a solid market here. I am curious to see how many sellers decide to list as the Spring selling season hits in April. As I have mentioned previously, I think a big part of our low inventory problem is caused by sellers who would like to sell but are still underwater on their homes. As prices continue to rise we should see more and more of those sellers gain the confidence to list.

 

Market Stats for Boise (Ada County) Single Family, Townhouse, and Condos February 2013 vs 2012. (More detailed graphs below)

 

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory

All

484

-2.4

100

1811

-14.3

100

$103

+15.4

$204K

+15.9

89

-13.6

3.7

Non Distress

390

+41.3

80.6

1402

+0.1

77.4

$107

+7.0

$219K

+6.8

77

-19.8

3.6

REO

26

-76.4

5.4

52

-28.8

2.9

$84

+13.5

$127

-5.2

84

+42.4

2.0

Short Sale

68

-38.2

14.0

351

-44.9

19.4

$85

+11.9

$149K

+1.7

161

-2.4

5.2

New Construction

106

+23.3

21.9

606

-2.4

33.5

$119

+13.0

$258K

+16.2

107

-21.3

5.7

 

 

As always I welcome your comments, questions, and referrals! I am looking forward to a great 2013.

 

Cam Johnson

Realtor®

Windermere Access Realty

1412 W Idaho St.

Suite 120

Boise, ID 83702

208-258-2222 Office

208-283-3664 Cell

208-258-2230 Fax

 

camjohnson@windermere.com

Check out my listings here: http://www.camjohnsonhomes.com

 

 

 

 

 

Facts and Trends

TM

Published March 2013*

Location:

ADA COUNTY

Price Range:

$0 – No Limit

SQFT Range:

0 – No Limit

Property Types:

Single Family, Single Family w/ Acr, Condo, Townhouse – All Properties – All Properties – All Properties

Bedrooms:

0 – No Limit

Bathrooms:

0 – No Limit

Year Built:

0 – No Limit

Prepared for you by: Cam Johnson

 

Number of Homes For Sale vs. Sold vs. Pended (Dec. 2011 – Feb. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 13

Jan. 13

% Change

Feb. 13

Feb. 12

% Change

Dec. 12 to Feb. 13

Dec. 11 to Feb. 12

% Change

For Sale

1811

1762

2.8%

1811

2114

-14.3%

1827

2192

-16.7%

Sold

484

386

25.4%

484

496

-2.4%

473

483

-2.1%

Pended

650

579

12.3%

650

620

4.8%

548

553

-0.9%

 

Average Price per SQFT (Dec. 2011 – Feb. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 13

Jan. 13

% Change

Feb. 13

Feb. 12

% Change

Dec. 12 to Feb. 13

Dec. 11 to Feb. 12

% Change

Avg. Sq. Ft. Price

103

105

-1.8%

103

90

15.4%

104

87

20.1%

 

Avg CDOM & SP/Orig LP % (Dec. 2011 – Feb. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 13

Jan. 13

% Change

Feb. 13

Feb. 12

% Change

Dec. 12 to Feb. 13

Dec. 11 to Feb. 12

% Change

Avg CDOM

89

74

20.3%

89

103

-13.6%

83

106

-21.7%

Sold/Orig LP Diff. %

97

96

1%

97

95

2.1%

96

94

2.1%

 

Average Price of For Sale and Sold (Dec. 2011 – Feb. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 13

Jan. 13

% Change

Feb. 13

Feb. 12

% Change

Dec. 12 to Feb. 13

Dec. 11 to Feb. 12

% Change

Avg. Active Price

288

284

1.4%

288

248

16.1%

283

245

15.5%

Avg. Sold Price

204

210

-2.9%

204

176

15.9%

208

172

20.9%

 

Months of Inventory Based on Closed Sales (Dec. 2011 – Feb. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Feb. 13

Jan. 13

% Change

Feb. 13

Feb. 12

% Change

Dec. 12 to Feb. 13

Dec. 11 to Feb. 12

% Change

Months of Inventory (Closed Sales)

3.7

4.6

-18%

3.7

4.3

-12.2%

3.9

4.5

-14.9%

 


Posted on March 11, 2013 at 4:03 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Time to Reality Check the Real Estate Market

Rarely does a day go by that I don’t get asked if this is a good time to buy and/or sell a home. Some people might think that my response is always an emphatic “YES!” because I work in real estate. But in truth, there is no right or wrong answer. Every person’s circumstances are unique, so in some cases the answer might be yes, but for others it might make more sense to wait. Allow me to explain.

The good news is that we’re finally coming out of the housing slump of the past five-plus years. Housing is a major driving factor of the U.S. economy, so regardless of whether or not one owns a home, a stronger housing market is good for everyone. For some would-be home sellers, this positive momentum, combined with a rise in home prices and buyer activity, is enough to compel them to list their home. And right now the statistics appear to be on their side.

According to the most recent findings from the National Association of REALTORS®, total housing inventory has fallen for the past several months, settling at just under two million existing homes on the market that are available to buyers. This represents about a four-month-supply of homes throughout the U.S. This is the lowest housing supply the nation has seen since May of 2005 – during the peak of the housing boom.

“Months supply” basically means that if existing homes were to continue selling at the current rate, the inventory of homes would be sold by that many months. A “normal” market usually has around six months of supply; therefore lower numbers mean a shortage of inventory. If demand is greater than supply, this often leads to competition amongst buyers – and rising prices – as we’ve seen in many markets throughout the Western U.S.

Here are the current inventory levels in key markets along the West Coast, all of which fall below six months of supply and report strong competition among buyers.

 

· Seattle: 1.4 months

· Portland: 4.2 months

· San Francisco: 1.8 months

· Las Vegas: 3.8 months

· Palm Springs: 2.5 months

 

The following graph demonstrates the downward trend in the overall U.S. month’s supply of homes which is currently at about 4.4 months:

So what does this mean for buyers and sellers? It means as long as inventory levels remain low, competition amongst buyers will remain high, and home prices should continue to steadily rise – albeit at a healthy rate – not like what we saw during the housing boom. As evidence of this, in the recent Home Price Expectation Survey, 105 leading housing analysts called for a 3.1 percent increase in home values by the end of 2013. And in a recent report by the National Association of REALTORS®, median home prices last quarter showed the strongest year-over-year increase in seven years.

Another thing that buyers and sellers need to keep their eye on is interest rates and their impact on affordability. Interest rates have been at such historical lows for so long that it’s easy to take them for granted. But the truth is that several lending institutions, including Freddie Mac and the Mortgage Bankers Association, project that interest rates will rise from 3.4 to 4.4 percent by the end of 2013. A full point increase can have a significant impact on the amount of your mortgage over the long term.

I’ll explain:

Assuming a 30-year-mortgage at a 3.4 percent interest rate, a home valued at $360,000 in today’s market would have a monthly payment of $1,596.53. If prices rise by 3.1 percent and interest rates rise to 4.4 percent, as both have been predicted to do in the coming year, that same home would be worth $371,160 and have a monthly payment of $1,858.62 (see chart below). This is a difference of $262.09 per month – $3,145.08 annually – and $94,352.40 over the life of the loan. That’s not chump change.

With these types of projections, one might wonder why there isn’t a flood of homes coming on the market. The biggest concern I hear from many would-be sellers is that they’re going to lose money because their home is worth less today than when they bought it. A valid concern, to be sure, but not necessarily the case for many folks. Remember, you’re buying and selling in the same market conditions, so if your home has lost value in recent years, it is highly likely that the next home you buy has as well.

I recently spoke to a friend of mine who wanted to sell but was afraid of losing money. He bought his Seattle-area home back in 2002 for $275,000. Over the next five years the market boomed and by 2007 his home was worth about $430,000. During that time, homes in many areas around Seattle appreciated by over 55 percent. Then the housing market crashed – and with it so did home prices. In my friend’s mind he lost $155,000 and now he thinks he should wait to sell until he can gain all that loss back.

Today, my friend’s home is worth about $327,000 – a gain of $52,000 over what he paid in 2002. If experts are right about an annual gain of three percent in the coming years, he will have to wait 10 years before his home is worth what it was during the peak of the market in 2007. My advice to him? If it’s the right time to move and you can afford to do it, go for it, but don’t base your decision on numbers that were the result of an artificially inflated market.

It goes without saying that nobody wants to sell at the bottom of the market, yet at the same time, everybody wants to buy at the bottom. Obviously these two scenarios can’t exist at the same time, but I hope the information in this blog shows there are definitely opportunities to be had by both buyers and sellers that are worth considering.


Posted on February 25, 2013 at 7:19 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Ask the Experts: What do you want to know about home design?

In March, Windermere real estate agents will be answering your questions about home design on the Windermere Blog and Facebook page. What do you want to know about getting your home ready to sell, designing your new space, home remodeling, architecture, and gardening?

Submit your questions in the comments below, on the Facebook page, or through this anonymous survey.

 

Thanks. We look forward to answering your questions!


Posted on February 19, 2013 at 6:14 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Boise (Ada County) Market Stats for January 2013 by Cam Johnson

Homes sales typically drop off a cliff in January, and this year was no exception. There were 374 closed single family residential sales (including condos and townhomes) in January compared to 547 in December, a 31.6% drop. No real surprise there. What was surprising was that January closings were 10.7 below January 2012. Monthly sales through all of 2012 had been strong and shown healthy increases over 2011 even in the face of very low inventories. So what happened in January? January closings for the most part are the result of contracts that were signed in November and December. So the question is really, “What happened in November and December?”. Hard to say if factors such as the election, low inventory, lower consumer confidence as indicated by the tepid sales of Christmas gifts, fiscal cliff fears, or as some fear, that the economy in general is starting to sputter again had any effect. Maybe. But the good news is pending sales, an indicator of future closings, look strong and were up 2.5% versus 2012. Remember things really started to ramp up at the beginning of 2012 so if we can post strong year to year numbers in the first quarter of 2013 we should have another good year.

 

Boise (Ada County) Market Stats for January 2013

 

 

Type

# Sold

% +/-

% of Total Sold

# For Sale

% +/-

% of Total For Sale

$/SF

% +/-

Average Sold Price

% +/-

Days on Market

% +/-

Months Inventory

All

374

-10.7

100

1762

-19.9

100

$105

+25.9

$211K

+27.1

72

-37.4

4.7

Non Distress

297

+36.9

79.4

1338

-9.3

75.9

$111

+18.8

$227K

+17.6

63

-43.7

4.5

REO

26

-75.0

7.0

39

-62.5

2.2

$85

+21.7

$148K

+17.5

57

+5.6

1.5

Short Sale

51

-48.0

13.6

382

-38.2

21.7

$80

+6.5

$149K

0

132

-29.4

7.5

New Construction

76

+13.4

20.3

608

-9.4

34.5

$120

+16.3

$256K

+13.3

85

-47.9

8.0

 

So while closed sales were down in January the other two major market indicators, inventory and prices continue their recent trends. Inventories are very low and continuing to drop and prices are surging at a worrisome rate. Inventory dropped to 1762 in Ada County which is lower than at any time since at least 2005, which is as far as my database goes back. Distressed properties were 23.9% of available inventory and were 20.6 of all closed sales compared to 48.2% last year. There are only 39 bank owned properties available currently compared with 104 in January of last year.

 

Prices quite frankly are scary right now. The average price per square foot was up an incredible 25.9% while the average sales price was up 27.1%! This continues to be partly due to the diminishing numbers of distressed properties and the new construction renaissance. Certainly the very low inventories have to, as any student of economics would expect, be causing upward pressure on prices as well. The question, eerily reminiscent from 2005-6, is how sustainable is this rate of increase? We have a lot of ground to make up after tumbling for 5 years but is it desirable to make it all up in just a couple years? Most would say that type of volatility is not good for the long term health of the market and I would have to agree. Higher prices may start to force some buyers out of the market thus correcting itself. Fewer buyer means more inventory and downward pressure on prices in theory. That is something that didn’t really happen in 2005-6 because of the ability of just about anyone with a pulse to get a loan. Lending requirements are much tougher now so there is a good chance things will start to cool down a bit. Also investors who flooded into the rental market when the cost to buy versus what they could rent for was strongly in their favor may start to back off as the math doesn’t pencil so well.

 

The next six months could very interesting indeed. For buyers this continues to be a good time to buy as prices are still well below the peak and interest rates remain very low. Low inventory is making it difficult for some buyers to find desirable properties in their price range though. For sellers, things are definitely looking up, although in many cases, they are still unable to sell without being underwater. This may be part of the blame for such low inventories right now. There are sellers who want to sell but are keeping their properties off the market until they feel they can get a price that will prevent them from coming to closing with cash or short selling.

 

As always your questions, comments, and above all, referrals are welcome. There are graphs below for those of you into that sort of thing…

 

Cam Johnson

Realtor®

Windermere Access Realty

1412 W Idaho St.

Suite 120

Boise, ID 83702

208-258-2222 Office

208-283-3664 Cell

208-258-2230 Fax

camjohnson@windermere.com

Check out my listings here: http://www.camjohnsonhomes.com

 

Facts and Trends

TM

Published February 2013*

Location:

ADA COUNTY

Price Range:

$0 – No Limit

SQFT Range:

0 – No Limit

Property Types:

Single Family, Single Family w/ Acr, Condo, Townhouse – All Properties – All Properties – All Properties

Bedrooms:

0 – No Limit

Bathrooms:

0 – No Limit

Year Built:

0 – No Limit

Prepared for you by: Cam Johnson

 

Number of Homes For Sale vs. Sold vs. Pended (Nov. 2011 – Jan. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jan. 13

Dec. 12

% Change

Jan. 13

Jan. 12

% Change

Nov. 12 to Jan. 13

Nov. 11 to Jan. 12

% Change

For Sale

1762

1907

-7.6%

1762

2201

-19.9%

1907

2290

-16.7%

Sold

374

547

-31.6%

374

419

-10.7%

509

497

2.4%

Pended

611

420

45.5%

611

596

2.5%

515

510

1%

 

Average Price per SQFT (Nov. 2011 – Jan. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jan. 13

Dec. 12

% Change

Jan. 13

Jan. 12

% Change

Nov. 12 to Jan. 13

Nov. 11 to Jan. 12

% Change

Avg. Sq. Ft. Price

105

104

1.5%

105

84

25.9%

103

86

19.7%

 

Avg CDOM & SP/Orig LP % (Nov. 2011 – Jan. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jan. 13

Dec. 12

% Change

Jan. 13

Jan. 12

% Change

Nov. 12 to Jan. 13

Nov. 11 to Jan. 12

% Change

Avg CDOM

72

83

-13.3%

72

115

-37.4%

76

104

-26.9%

Sold/Orig LP Diff. %

96

96

0%

96

94

2.1%

96

94

2.1%

 

Average Price of For Sale and Sold (Nov. 2011 – Jan. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jan. 13

Dec. 12

% Change

Jan. 13

Jan. 12

% Change

Nov. 12 to Jan. 13

Nov. 11 to Jan. 12

% Change

Avg. Active Price

284

279

1.8%

284

242

17.4%

282

244

15.6%

Avg. Sold Price

211

211

0%

211

166

27.1%

210

172

22.1%

 

Months of Inventory Based on Closed Sales (Nov. 2011 – Jan. 2013)

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jan. 13

Dec. 12

% Change

Jan. 13

Jan. 12

% Change

Nov. 12 to Jan. 13

Nov. 11 to Jan. 12

% Change

Months of Inventory (Closed Sales)

4.7

3.5

35.1%

4.7

5.3

-10.3%

3.7

4.6

-18.7%

 

 


Posted on February 12, 2013 at 8:24 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Baby Boomers Have Homebuilders Rethinking Home Design

The baby boomer generation, which is currently estimated to be aged between 48 and 67 years old, comprises almost one-third of the nation’s population. The demand that this lucrative segment of the population has on housing is causing homebuilders to rethink how they design homes. In fact, the National Association of Home Builders (NAHB) has a 50+ Housing Council which focuses entirely on the housing needs of aging baby boomers.

A study commissioned by the NAHB suggests that baby boomers and older homebuyers want a maintenance-free lifestyle that frees them up to travel, socialize, and pursue other activities. Perhaps this is why real estate professionals report an increase in the number of baby boomers who are interested in condominiums and townhomes. There is also growing popularity for luxury units because they appeal to empty-nester baby boomers who no longer want the maintenance of a single family home, but don’t want to scale back on certain features and amenities either.
 
Homes that are specifically designed for aging clientele often incorporate what is known as “universal design” which allows anyone to function within the home, whether it’s children, an elderly person, or someone who is wheelchair bound. Universal design compensates for a reduced range of motion that often times comes with aging homeowners. For example, electrical switches and thermostats should be placed no higher than 48 inches above the floor and outlets no more than 27 inches—this puts them within the reach of virtually anyone. Likewise, the use of Lazy Susans, rolling carts under counters, pull-out shelves, and height-adjustable shelves make items more accessible. The height of counter tops must be within reach of all household members sitting or standing. Other features might include installing fold down benches in the shower, dual handrails, and raised toilets to compensate for decreased balance and coordination.
 
Universal design compensates for reduced strength by adjusting tension to assist with opening/closing windows and doors. Installing C or D shaped loop handles on drawers and cabinets and using easy gliding hardware for drawers also assists weaker individuals. Berms, ramps, and wider doorways with lower thresholds help with mobility and agility. Single-story homes also offer increased accessibility for aging homeowners—in fact, builders say that 75 percent of the homes they build for the 50+ market are single story.
 
The end goal for organizations like the NAHB’s 50+ Housing Council is to encourage the construction of more homes that can be adjusted over time to homeowners’ needs, so that they can live comfortably, safely, and independently as they age.

Posted on February 11, 2013 at 4:46 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Homeowners Insurance: Protect your home and your loved ones

In addition to providing shelter and comfort, our home is often our single greatest asset. And it’s important that we protect that precious investment. Most homeowners realize the importance of homeowners insurance in safeguarding the value of a home. However, what they may not know is that about two-thirds of all homeowners are under-insured. According to a national survey, the average homeowner has enough insurance to rebuild only about 80% of his or her house.

What a standard homeowners policy covers

A standard homeowner’s insurance policy typically covers your home, your belongings, injury or property damage to others, and living expenses if you are unable to live in your home temporarily because of an insured disaster.

The policy likely pays to repair or rebuild your home if it is damaged or destroyed by disasters, such as fire or lighting. Your belongings, such as furniture and clothing, are also insured against these types of disasters, as well as theft. Some risks, such as flooding or acts of war, are routinely excluded from homeowner policies.

Other coverage in a standard homeowner’s policy typically includes the legal costs for injury or property damage that you or family members, including your pets, cause to other people. For example, if someone is injured on your property and decides to sue, the insurance would cover the cost of defending you in court and any damages you may have to pay. Policies also provide medical coverage in the event someone other than your family is injured in your home.

If your home is seriously damaged and needs to be rebuilt, a standard policy will usually cover hotel bills, restaurant meals and other living expenses incurred while you are temporarily relocated.

How much insurance do you need?

Homeowners should review their policy each year to make sure they have sufficient coverage for their home. The three questions to ask yourself are:

· Do I have enough insurance to protect my assets?

· Do I have enough insurance to rebuild my home?

· Do I have enough insurance to replace all my possessions?

Here’s some more information that will help you determine how much insurance is enough to meet your needs and ensure that your home will be sufficiently protected.

Protect your assets

Make sure you have enough liability insurance to protect your assets in case of a lawsuit due to injury or property damage. Most homeowner’s insurance policies provide a minimum of $100,000 worth of liability coverage. With the increasingly higher costs of litigation and monetary compensation, many homeowners now purchase $300,000 or more in liability protection. If that sounds like a lot, consider that the average dog bite claim is about $20,000. Talk with your insurance agent about the best coverage for your situation.

Rebuild your home

You need enough insurance to finance the cost of rebuilding your home at current construction costs, which vary by area. Don’t confuse the amount of coverage you need with the market value of your home. You’re not insuring the land your home is built on, which makes up a significant portion of the overall value of your property. In pricey markets such as San Francisco, land costs account for over 75 percent of a home’s value.

The average policy is designed to cover the cost of rebuilding your home using today’s standard building materials and techniques. If you have an unusual, historical or custom-built home, you may want to contact a specialty insurer to ensure that you have sufficient coverage to replicate any special architectural elements. Those with older homes should consider additions to the policy that pay the cost of rebuilding their home to meet new building codes.

Finally, if you’ve done any recent remodeling, make sure your insurance reflects the increased value of your home.

Remember that a standard policy does not pay for damage caused by a flood or earthquake. Special coverage is needed to protect against these incidents. Your insurance company can let you know if your area is flood or earthquake prone. The cost of coverage depends on your home’s location and corresponding risk.

Replacing your valuables

If something happens to your home, chances are the things inside will be damaged or destroyed as well. Your coverage depends on the type of policy you have. A cost value policy pays the cost to replace your belongings minus depreciation. A replacement cost policy reimburses you for the cost to replace the item.

There are limits on the losses that can be claimed for expensive items, such as artwork, jewelry, and collectables. You can get additional coverage for these types of items by purchasing supplemental premiums.

To determine if you have enough insurance, you need to have a good handle on the value of your personal items. Create a detailed home inventory file that keeps track of the items in your home and the cost to replace them.

Create a home inventory file

It takes time to inventory your possessions, but it’s time well spent. The little bit of extra preparation can also keep your mind at ease. The best method for creating a home inventory list is to go through each room of your home and individually record the items of significant value. Simple inventory lists are available online. You can also sweep through each room with a video or digital camera and document each of your belongings. Your home inventory file should include the following items:

· Item description and quantity

· Manufacturer or brand name

· Serial number or model number

· Where the item was purchased

· Receipt or other proof of purchase \Photocopies of any appraisals, along with the name and address of the appraiser

· Date of purchase (or age)

· Current value

· Replacement cost

Pay special attention to highly valuable items such as electronics, artwork, jewelry, and collectibles.

Storing your home inventory list

Make sure your inventory list and images will be safe incase your home is damaged or destroyed. Store them in a safe deposit box, at the home of a friend or relative, or on an online Web storage site. Some insurance companies provide online storage for digital files. (Storing them on your home computer does you no good if your computer is stolen or damaged). Once you have an inventory file set up, be sure to update it as you make new purchases.

We invest a lot in our homes, so it’s important we take the necessary measures to safeguard it against financial and emotional loss in the wake of a disaster.

 

What tips do you have for creating a home insurance inventory?


Posted on January 28, 2013 at 9:01 pm
Windermere Real Estate Boise Valley | Posted in Blog |

Out with the old, in with the new, and other housing predictions for 2013

The new year is upon us, and with it comes the chance for a fresh start with infinite possibilities. As the saying goes, “out with the old, in with the new”. Historically, January is believed to be a pretty powerful month from which predictions about the rest of the year can be made. For example, there’s something called the “January Barometer” which suggests that the performance of the S& P500 in January predicts its performance for the rest of the year. Apparently this indicator has had an 88.5% accuracy ratio since 1950. It’s hard to argue with that.

This got us thinking about our own predictions for the year ahead. We can’t guarantee an 88.5% ratio of accuracy, but this is how we see things today:

Supply and demand: The number of homes for sale has steadily declined over the past year, resulting in stiff competition amongst buyers – too much demand, not enough supply. This trend should start to turn around as would-be home sellers gain confidence in the market and decide to jump off the fence.

Rising prices: There is a broad consensus amongst real estate professionals that prices will steadily rise in 2013. We’ve already seen the start of this trend locally in recent months, with reports of strong gains in many neighborhoods.

Interest rates: Given that interest rates are already at all-time lows, it’s difficult to believe they will go any lower in 2013. Conversely, the state of the current economy also makes it unlikely that rates will move significantly higher in the coming year.

Investors: This segment of home buyers is usually a sign that the market is turning around for the better. Last year saw a spike in investors and we expect this trend to continue in 2013.

Distressed properties: Much has been said about the “shadow inventory” that could flood the market and cause prices to sink again. While there is still a hefty supply of foreclosures, it’s highly unlikely banks will list them en masse. The market needs homes to buy, and there are certainly more buyers than sellers right now, so distressed inventory could actually play an important part in housing recovery.

Our region continues to outperform most West Coast markets, as well as the United States as a whole. The headwinds that do exist, mainly in the form of low inventory levels, are likely to be temporary. So, while it’s important to keep an eye on the past, our focus is firmly on the future – and we are seeing good things to come.


Posted on January 22, 2013 at 4:11 pm
Windermere Real Estate Boise Valley | Posted in Blog |

2013: Another Good Year for Housing

Well, the time has come again to polish up the old crystal ball, gaze into it, and see what's in store for the housing market in 2013.

Having spent long hours staring into the mists, it appears as if this year will be about as easy to predict as last year. Not because of any fundamental change in the housing market itself – although I so see plenty of adjustments afoot – rather the future is clouded because of the prevailing fractured political environment.

That said, here is what I am looking for this year.

1. Interest rates are likely to stay at close to historic lows at least through the middle of this year. Inasmuch as there are some mumblings from members of the Federal Reserve relative to a slowing down in Qualitative Easing (which is basically the printing of money which is then added to the economy in order to stimulate growth) before the end of the year, I do not see this as putting rapid upward pressure on interest rates in the near-term. That said, I do think that they will start to come off their current lows, so now may well be a good time to lock in.

2. Housing prices have bottomed out and we will continue to see appreciation in values across the board in 2013. The caveat here is that we are unlikely to see the kind of upward pressure in values that was seen in 2012. Unless we see a rapid increase in inventory levels, look for more modest price increases – but increases we will certainly see.

3. In 2012, many were heralding the veritable tsunami of foreclosed homes that were certain to come to market and cause a rapid reversal in price gains. This, of course, did not happen. Many may remember the huge numbers that were being bandied around as to the number of foreclosed homes that were supposedly heading our way. I personally heard numbers as high as five million units. Now that the smoke has cleared somewhat, the numbers are becoming a little clearer.

With a shadow inventory of around 2.3 million units of pending supply, I am actually not too worried at all. We need to get these homes to market and sold, and we will. It's just a matter of how long it will take. With over half of these homes delinquent, but not yet subject to foreclosure proceedings, I believe there will continue to be a shadow well into 2014.

That said, demand from the investment community, as well as from buyers who are not finding sufficient choice in the non-distressed market, should continue to reduce the number of distressed properties.

4. Household formations should start to increase but this will not be enough to get the homebuilding industry back into full swing. Many builders are still uncertain, and while they see a supply/demand imbalance in the market, they have not yet pulled the trigger and gotten back to full production. This is likely to remain the case in 2013.

5. There are several buyer groups that are expected to make an entry into the market in 2013.

Entry level buyers – First-time homebuyers have been sitting on the sidelines waiting for a sign that we’re at the bottom. As they hear about price increases in their desired neighborhood(s) they are likely to rush to become homeowners.

Move-up buyers – The price appreciation that has occurred in the last year has already lifted over one million underwater homeowners above water, with future price appreciation to lift them even more. Look to see many of them considering trading up.

Move-down buyers – Empty nesters and retirees, who still have equity in their existing home, will think about buying a home that is more suitable to their current lifestyle. This may, or may not, include adult children as well as their aging parents.

Investors – Investors and, yes, even flippers, will continue to grow in numbers as they realize housing is the best risk-adjusted return on their money.

The recovery in the housing market has been a very long time coming, but I believe that it is here to stay, and all things being equal, I expect 2013 to be another good year.

Have a fantastic year!


Posted on January 14, 2013 at 5:09 pm
Windermere Real Estate Boise Valley | Posted in Blog |

How new finance legislation affects home owners, buyers and sellers

Many home owners, buyers, and sellers have been carefully watching the new federal finance package passed on January 1, 2013 by both the U.S. House of Representatives and the Senate. This is because it included automatic tax increases as well as federal spending cuts that involve real estate programs.

Many important real estate programs were extended, albeit for a limited time. Therefore homeowners, buyers and sellers should pay attention to these new time periods when planning financially.

Components of the legislation most likely to impact real estate decisions:

  • Capital gains tax exclusions for sale of a principal residence remain in place. This benefit protects up to $500,000 of capital gain ($250,000 for individual filers). However, home sellers with incomes of $450,000 ($400,00 for individual filers) or above and where the gain on the sale of their home is above $500,000 will now pay taxes on the excess capital gains at a higher tax higher rate.
  • Key provisions of the Mortgage Debt Relief Act are extended through January 1, 2014. This provides financial relief in the form of lower taxes for home owners or sellers who have a portion of their mortgage debt forgiven by their lender. For sellers, this forgiveness occurs through a form of a short sale or foreclosure. For home owners, this relief comes in the form of a loan modification.

Without this extension, any debt forgiven would become taxable. Home buyers will benefit from this extension since it will likely result in a greater number of short sales and foreclosures being available for sale, as underwater sellers are more incentivized.

  • Deductions for mortgage insurance for filers earning below $110,000 are extended to through 2013. Mortgage insurance—usually paid for by home buyers—allows home buyers who have less money to put down to qualify for better loans. Home buyers with qualified residences will be able to continue to deduct the cost of this mortgage insurance. This benefit is also retroactive through 2012.
  • The 10 percent tax credit for energy improvements to existing homes is extended through 2013. This credit, which is limited to $500, applies to existing homes and is also retroactive through 2012.
  • Capital gains on real estate contributed by home owners for conservation are extended through 2014. Increased contribution limits and carry-forward periods for contributions of appreciated real property will be maintained.
  • The first $5M in individual estates and $10M for family estates are now exempt from estate tax. Tax rates in excess of these figures have increased. This will benefit the heirs.

Other changes—such as new estate tax exemptions and an increased capital gain tax rate for those earning more than $450,000 ($400,000 for individuals)—may also impact real estate decision-making. As always, home owners, buyers, and sellers are advised to seek the advice of a qualified tax advisor before making major financial decisions, including the decision to buy or sell real estate.


Posted on January 8, 2013 at 7:32 pm
Windermere Real Estate Boise Valley | Posted in Blog |

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