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by Jace Stolfo
on Saturday, December 20th, 2008 at 11:07am.
Have you wondered how the current Boise real estate market compares to when it was at it's peak? To go to the month with the most home sales, we go back to August of 2005 when there were 1342 home sales in Ada County (August '08 had 472). The days when all you had to do was stick a sign in the yard and you had multiple offers within days!
After a booming 2005 and most of 2006, the Boise real estate market began to loose some steam and inventory began increasing. In May 2006, there was only a 2.8 month of supply of homes in Ada County. Just four months later, the supply more than doubled to 5.9 months (which is actually a balanced market). But development, spec homes, and optimism carried forward.
While demand can shift rapidly, supply takes more time to increase and decrease. The supply side, just like a train, had some distance to go before it could actually get slowed down. In May 2006, there was 3195 homes for sale in Ada County. Just one year later, August of 2007, that number of homes for sale had surged over 35% to 4949.
In terms of supply, the Boise real estate market appears to have turned the corner. The last four months have all posted more than a 10% decrease in the number of homes for sale compared to the previous year. However, with the exception of September when sales increased by 18%, demand has also declined from previous years. November 2008, had 265 home sales in Ada County.
I'm very excited to see interest rates where they're at. Not only has this been bringing affordability for homeowner's refinancing, but it has brought in many buyer's. I think the key to getting this market turned around is interest rates. We are still searching for the bottom of this market, but I do know the kind of properties I most work with, like bank-owned real estate (REO), are getting scooped up fairly quickly by both investors and users. The combination of these historic low interest rates the best deals we've seen in years are getting some buyer's excited.
Whether or not right now is the time to buy is up to you. I do believe this market has some incredible opportunities right now. I also think overall prices will come down more. Personally, I think if you can get a the right deal (like an REO), on the right home, at these interest rates, and you want to own, then long-term now is a great time to buy.
If you want to take advantage of this market and want an aggressive agent to help you locate and negotiate the best deals, I would love the opportunity to earn your business.
Data Source: IMLS Disclaimer: No guarantee or representation is made in regards to the accuracy of this data or past, present, or future appreciation or deprecation of property values.