Market Conditions

By Paula K. Stern

Real Estate projections are in, and optimism is running high in Boise. Let’s start with local stats. January sales were up 10.4% over January 2011. Although this is still below December 2011 sales, historically, January sales are the lowest of the year. Pending sales were a different story – up over 25% from December.

More good news is reflected in the decline in the glut of homes which has saturated the market over the last few years. January’s inventory dropped 3% from December and a whopping 29% from January 2011. Ada County’s overall inventory is at a 4.5 month supply – historically a strong sellers’ market. However, anyone looking for a home under $119,000 already knows they are being gobbled up very quickly, as the inventory remains at a mere 2.5 months in this price range.

The FISERV Case-Shiller Home Price Index reported that most of the 380 metro areas they analyzed will continue to see a drop in prices throughout 2012, including Las Vegas which is predicted to drop over 10% by the end of next quarter. Yet Boise has bucked this trend, as we are one of the few areas where they are projecting a 5.9% price increase by the end of next quarter!

Research results from Realtor.com have ranked Boise 6th out of 146 markets most likely to see a housing turnaround in 2012. Based on fourth quarter housing data of US Cities, Boise was the only city in the Rocky Mountain region to make the list. All Top 10 locations are areas that have been heavily affected by foreclosures, which have pushed home prices down lower than most metro markets across the nation. Distressed homes in Ada County still make up over 50% of sales and over 30% of listings, but this is down from the previous 2 years. Although there is still too much bad news about jobs and unemployment, it is nice to hear some good news in the real estate portion of our economy. Stay tuned to see how it all plays out

 

Article from RealtyTimes.com.

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