Posts Tagged ‘ Boise Idaho real estate ’

Home Prices- Pre-Bubble?

In a recent Wall Street Journal article it was discussed that we are now at pre-bubble prices for housing. (Pre-bubble is considered to be pre 2003.) Nationally there are still pockets that are over valued (Seattle, New York, Portland , Oregon and Charlotte).  Place like Cleveland are so undervalued that their prices are considered to be at the 1991 level! Economists are expecting another 5-10% drop. But that is nationally, and as I have said in a prior post, real estate is local!

So I checked the Intermountain MLS to see if the data agrees with that and here is what I found for the ADA County (Boise, Idaho area):

In 2002 the Median price (sold) was : $140K

In 2003 the Median price (sold) was : $146.9K

In 2004 the Median price (sold) was:  $162,990

In 2010 the Median price (sold) was : $155K

It is possible that if the 2010 price goes down 5% it will be $147,250 which is near the 2003 price. If it goes down 10% it will be $139.5K which is almost the 2002 prices. So far the data I have seen doesn’t suggest a 10% decrease but a 5% decrease is plausible.

Would that be bad news? No! I do not remember anyone complaining in 2003 that homes were too expensive (okay, maybe there were a few). I have stated before that getting back to normal prices for real estate in the Boise, Idaho area will be closer to 2002-early 2003 pricing.  And affordability is always a good thing! 

If you would like to see what current home prices are in the Boise, ID area please go to my website: http://www.BoiseRealEstateChick.com

To see more of the Wall Street Journal article go to:http://online.wsj.com/article/SB10001424052748703313304576132291585938656.html

Bank Owned (REO) -Basics

A bank owned property  is the result of a foreclosed property that did not sell at the auction (Sheriffs Sale). The property now goes back to the bank and is referred to as a Real Estate Owned property (REO).

When it comes to buying, a bank owned property is a much easier deal to go through than a short sale  or the foreclosure auction for several reasons:

  • Buyer negotiates directly with the bank because the (bank) is the seller.
  • Title, back taxes, liens, HOA dues, etc. are cleaned up and taken care of by the lender. This may not always be the case when purchasing a short sale property.
  • An REO will be empty so no tenants or squatters have to be evicted
  • Home is usually listed below market value so that lender can clear their inventory. Remember, if a bank has property with no one paying a mortgage on it, they lose money.
  • The lender (seller) will usually pay buyers closing costs
  • Bank owned properties are usually in better condition than short sales. This is because the lender knows that to move the property they have to make  it marketable. A short sale property sometimes has damage that either the seller could not afford to fix or may have done in spite because they are loosing their home. (The way some of the homes are intentionaly damaged by the owner is criminal in my opinion)
  • Quicker closing time. Generally an REO will close with 30-45 days, while a short sale can take months.

Bank Owned properties will continue to be a big part of the overall real estate market for the next few years. Buyers should not be afraid to look at these properties for fear that the banks (lenders) will be hard to deal with.  It is quite the contrary, so go ahead buyers, get out there and help clear up some of this inventory and get a great deal at the same time!

If you would like to view Bank Owned properties please go to my website (no sign up required!) : www.BoiseRealEstateChick.com

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