By Cristina Pescaru, CSP
Real Estate Consultant
Boise, Idaho

Boise, Idaho

The City of Trees

The real estate news is at least confusing, if not downright discouraging, most of the time. But here’s the silver lining: Boise hasn’t been hit as hard as other areas of the country, and we may have seen the worst of it. In some areas, we are starting to see competing offers on properties, and that is great news for sellers!

Of course, we won’t be at the price levels of 2004-2005 any time soon, and the economy as a whole has a lot to do with that. For one thing, there aren’t all the investors that were around a few years ago, willing to invest sight-unseen sometimes. Then, people may not be retiring in our area at the level they used to, for the simple reason that many people have found themselves in a position where they cannot afford retirement. Job relocations aren’t as plentiful as they used to be, either. And small businesses don’t start at the same rate as before.

Good News – Boise Great Place to Raise a Family

But enough with the gloom and doom! The good news: Boise is still considered a great place to be, and to raise a family. Home prices have become more affordable, and we have seen an increase in distressed home sales. That is good news for buyers. Median home price hovers around $155,000 in Ada County, for existing homes. The new homes median price is around $178,000.

Inventory is dwindling, sales are picking up, prices are trying to stabilize, all indicators for a better looking year in real estate. I personally noticed that banks have streamlined their short sale processes, and so short sales shouldn’t scare buyers away, as they used to. Foreclosed properties are going to be a big part of our market, and I think people should not shy away from those either. Banks really are trying to work with people to make it an easier, shorter process.

Short Sales: The Truth

There is a misconception I would like to see gone: just because a property is a short sale or bank owned (foreclosure) it doesn’t mean that buyers can get it for a song. The property still needs to sell at market value, and there is no such thing as something for nothing, no, not even in a distressed market. You know the saying: there is no free lunch…well, sometimes there is for someone, but someone else has to pay for it, one way or another.

Lastly, new homes and non-distressed property will have the upper hand in the market, for obvious reasons. That means that sellers of this type of property still have a little bargaining power, but not as much as some think. They will still have to be reasonable in their demands, and look at the overall economic picture, if they don’t want to scare away anxious buyers.

Nervous buyers: great topic for another day…

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Filed under: Boise Real Estate

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