Boise Real Estate Market

It was the best of times, it was the worst of times… This is how many people feel about the real estate market here in Boise right now. It is definitely an odd time for buyers and sellers. It would appear that the pendulum is sitting right in the middle. A great indication that the market is about to move again but in what direction?

Looking back we see an insane sellers market in 2005-2008, to an almost equally insane buyers market in 2009-2011. During the seller’s market, a seller could ask almost any price for their home and would get it (thanks to appraisers who said ” what price do you need?” and lenders who said “approved”). When that came to a screeching halt, it took at least a year of a stagnant market for sellers to finally get the message that the fun was over.

In came the buyers market and while not as fun as the seller’s market, it was a market to be had. In the beginning (2009) the buyers were having to adjust to being in the driver’s seat,  while the sellers had to come to terms with this. Then came the how low can you go prices. Short sales that could not close (ah yes, the banks at it again)  became bank owned. As we all know it is better to sell 20-30% below market than to try and work things out with the existing homeowner! Not! Not only were the prices rock bottom (and some going below that), closing costs were thrown into the deal as an expected concession and interest rates that practically gave the money away for free!

A great market indeed, except where are all the buyers? Oh, that’s right, the government was involved. We know how well they made home-ownership work during the height of the seller’s market. Everyone gets one, no income verification and no money down! Woo-hoo!!! Oh wait…,  you mean people borrowed more than they could afford or possibly ever pay back? Well then, we (the government) know how to fix that! No one can borrow unless they have an 800 credit score and have never had debt! Yes, that will fix the problem! Here we go again…

2011 had so many bank owned properties hurting the “real ” sellers even more, that many took their homes off the market to wait it out. We watched as each  month the inventory continued to drop here in the Boise area, and then we watched as the prices stopped sliding downward. Hmmm…could we possibly be seeing the signs of a market improvement?

In comes 2012, a year that many gladly accepted, if only to say good-by to 2011! What we are seeing is an odd time for sure, being both a seller’s market and a buyer’s market. It is a seller’s market because inventory is at all time lows. Price your home right and it can sell with multiple offers on it in less than a week, at or above asking price. It is a buyer’s market because home affordability has never been better. It is now cheaper to own than to rent! Interest rates are still under 4%,and in most cases you do not need more than 3.5% down and closing costs are still being covered.

Will 2012 be the year that we see a full recovery? When I say “recovery”, I mean back to a normal market like before 2004, with an end in sight of distressed properties and an increase in “normal” sales. It is a political year, so many things can happen that could alter yet again the housing market. For the moment however, the pendulum sits waiting to move!

If you would like to see what homes are currently going for in the Boise area, please go to my website: http;//www.BoiseRealEstateChick.com

or if you have a question regarding the local real estate market, please send me an e-mail: mary@BoiseRealEstateChick.com

And always feel free to leave a comment!