Boise Real Estate Blog

San Francisco, Idaho?

boiserealty — Fri, 12 Nov 2010 05:12:59 +0000

The day after the elections I was listening to a local political pundit refer to Idaho’s District 19 as Idaho’s equivalent to San Fransisco. For those wondering where District 19 (or little San Francisco) is that would be what is commonly referred to as the ‘North End’ which encompasses downtown and neighborhood north to the foothills, west to 36th street and east to Boise Ave.

Can you guess???

boiserealty — Mon, 11 Oct 2010 22:46:47 +0000

Are you searching for homes online? I challenge you to test your abilities to sniff out the short sales by viewing the pictures alone without reading the comments. It has typically been quite easy to tell which homes are bank owned because the lawns are brown and dead with occasional fixtures missing inside (say a stove or chandelier). During a routine search today I did see one bank home in Meridian that had been stripped of everything – the only thing remaining was the carpet pad – yes you heard me right they even took the carpet on the way out the door. There was a hole in the wall where once there was a fireplace insert, the kitchen was picked clean leaving only the carcass. I luckily see very few cases this bad and when I do I truly hope the bank tracks them down and receives retribution. I also hope these irresponsible ‘previous home owners’ are never allowed to own a home again.

Back to the original thought on sniffing out short sales solely by looking at the pictures. I will readily admit this is a bit of profiling. I’m not proud of it but I truly challenge anyone that believes they don’t do it to step forward. sure we don’t want to admit we do but we do. A hundred times a day we make snap decisions, for those in doubt read Malcolm Gladwell’s Book “Blink” we cannot help but make judgment calls, it’s like breathing.

I was about half way through a search of ordinary, average family homes in Meridian and I came across a house that caught my attention, not because there was anything special about the home as it was not memorable but it was instead the contents that struck me. In this ordinary suburban home there was an extraordinary number of huge flat screen TV’s and a plethora of other electronic equipment. There was even an enormous TV (almost theater room size) in what was obviously a kids room. As picture after picture rolled by the thought popped into my head that this must be a short sale. Maybe it’s really not fair to assume that someone in a modest house with too many TV might not spend their money wisely, perhaps this is just an unfair judgment on my part but the thought did cross my so I checked…bingo, a short sale.

A few houses later I came across another house that raised my suspicions. This home was conspicuous because of the sheer amount of stuff; every nook and cranny was decorated with ‘stuff’ probably ordered right off the Home Shopping Network. If I had been the listing agent I would have asked my seller to pre-pack 3/4 of the crap as buyers will look at the stuff not the house. This home raised the red short sale flag not only because of being crammed with purchases but because many selling a home as a short sale just don’t care enough to get their homes in order and do what is needed to sell.

Human nature is interesting to observe, judge not but rather see just how observant you can be.

Economy Looking Up

boiserealty — Mon, 20 Sep 2010 23:51:32 +0000

I recently read an article in the Washington Post by Neil Irvin outlining 5 reasons to stay upbeat about the economy.
1. A steep rise in imports has drug down the economy. With many world economies doing better that the US exports may be set to rise above that of imports in the coming quarters which will improve domestic growth.
2. Housing starts fell from a 2.3 million annual rate in early 2006 to a low of 477,000 in April 2009. We are up to a paltry 546,000 annual rate, less than half of what is needed to keep up with population growth. It won’t bounce back but mathematically it has to.
3. The industrial sector is actually holding up. July industrial production was up 1% and early indicators are showing continued growth. Augusts manufacturing index rose to 56.3, any number over 50 indicates expansion.
4. Credit standards have eased making loans to households and businesses more accessible. I know, some of you are thinking isn’t this the root of the problem? After the bottom fell out of the banking industry only the A+ buyers and businesses could get credit, the banks went too far in the opposite direction leaving many responsible credit-worthy people out in the cold. This included businesses that relied on credit lines to run their businesses as they had for decades using their credit responsibly. By the way I don’t think this was the root of the problem – I think the root was greed on many, many levels.
5. The rate of savings has risen from 2.7% at the start of the recession to 5.9% in July. This means households are further along in readjusting their spending patterns to match their incomes than was previously realized.

I have added a 6th reason to the list which I feel is sorely missed. I think gratitude and a realization of what is important in our lives is slowly shaping the way many people live their lives. Wants are being replaced with gratitude for what we have. Sure, I like many would like to have a newer car, new lap top, new clothes but I feel this sense of peace in the appreciation that I have a car that is old yet dependable, a computer that still chugs along, a roof over my head and food on the table but most importantly is the love of my family and friends, really what more do I really need.

My hope is that Americans will not go back to living beyond their means, using their homes as an ATM, buying whatever they fancy at the moment like there is no tomorrow or that tomorrow will somehow just take care of itself. I hope we have learned some lessons during these past 2 years, most importantly it really isn’t ‘stuff’ that will make us happy. Families are discovering what matters is its members not their toys. I hope this rediscovery will stay with us for many years to come as the economy recovers for it will.

As Nietzsche so aptly said “What doesn’t kill us makes us stronger.” Here is to keeping life in perspective!

What Happens When Interest Rates Go Up?

boiserealty — Wed, 15 Sep 2010 23:07:50 +0000

As I go about the business of getting ready for the day the Today show is generally playing in the background, if something peaks my interest I wander out to stand in front of the TV and watch want is being discussed. Today Show financial experts, Barbara Corcoran and Jean Chatzky bantered back and forth about the pros and cons of renting vs. buying this morning. I don’t always agree with Corcoran but she’s always interesting.

They claim that 40% of the population is now a renter. I’m not so sure the ratios are this high in Ada County. Friends of mine will attest to the jump in rental rates. These friends recently lost their current rental because it was foreclosed on and where left trying to find something comparable in the same school district. They found rents up between $200 – $300 a month over a year ago (hopefully their home will sell soon so the can buy here!). Need I say more, the rental market will continue to tighten up, especially for single family homes. There is a pool of people who will never qualify to own a home and many simply have no desire to own the ‘American Dream’.

Barbara and Jean talked about interest rates as well which are still incredible (although inching up a bit this past week). A statistic they tossed to the viewers this morning was that a mortgage payment 10 years ago on a $200,000 loan would have been $1,700 a month vs today’s payment which would be $955! WOW!! Rates are so incredible I think people are starting to take them for granted and assume this will continue. Jean Chatzky pointed out a 1% variation in interest rates is worth 9% in home value and said do the math…so I did. I don’t think interest rates will go down further but the bond rate will increase and interest rates will go up. So if Jean’s calculations are correct and interest rates go up 2% to 6.37 (which was typical 5 years ago) and if at today’s rates you could afford to buy a home for $200,000 with an increased interest rate of just 2% your buying power DROPS to $164,000!

Waiting for prices to drop another $10k may end up leaving you out in the cold or simply paying higher rents to the people with forethought.

For Sale Signs Dot the North End

boiserealty — Fri, 03 Sep 2010 05:20:03 +0000

September’s real estate market is looking more like a spring market. Everyone always talks about spring being the quintessential time to get your house on the market, people wanting to move during the summer months before children head back to school and I always respond people move year round. And here we are in what are typically the slowest couple weeks of the real estate year, back to school and the last summer hoorah, and suddenly for sale signs are popping up like a quickly spreading rash along the iconic tree lined streets of Boise’s north end. What the heck? In the past 3 day 13 new signs have dotted the landscaped, 39 in the past 2 weeks, 330 properties total available for the taking. Okay, that may not sound like a lot to the casual observer but to someone shopping this little area it’s bonanza time, the mother lode of choice with home available in every possible style and every possible price range. I have lived in the Boise’s north end 22 years watching the ebb and flow as both a resident and as a realtor; there are houses that appear and reappear on the market every couple years and others only generationally. Are we in the generational phase? I cannot believe the choices available, homes for which I have never seen a sign planted in the yard before are suddenly spouting ‘new owners needed signs’…wow it’s a great time to be a buyer!

BSU – More than just a football team

boiserealty — Thu, 26 Aug 2010 05:22:09 +0000

It can feel a bit sacrilegious living in the land of the all mighty Broncos and not being a football fanatic. Ok, I’ll be flat out honest here – I’m not even a mild fan of the game. I will watch the Super Bowl with mild fascination of the fanaticisms but mostly I just watch it for the commercials (and to sit close to my sweetie if there is one to sit close to). When people talk about Boise State University it is generally in reference to the amazing football team, end of conversation. My understanding is they are an amazing team, the little engine that could and could and could. It was even fun to watch my mom become a football fan, a phenomenon beyond comprehension but darling all the same.

So for this ardent ‘un-football-fan’ it does my heart good to see BSU recognized for something other than football. US News and World Report’s annual “America’s Best Colleges” issue names BSU amongst its up-and-comers for the second year in a row! In all only 68 universities have made the cut as “the most promising and innovative changes in the area of academics, faculty, student life, campus or facilities”. BSU was listed as #5!!

What does this have to do with real estate you ask? Having a university with a good reputation strengthens the entire community with cultural and educational opportunities generally not afforded non university towns. BSU is a major employer and the influx of students helps fuel the local economy. A strong university community is always viewed as a strengthening factor. As BSU continue to gain recognition on the playing field and in the classroom the entire valley benefits.

Boise Rental Boom

boiserealty — Tue, 10 Aug 2010 01:45:44 +0000

Do you own rental property or have thought about owning investment property? It is remarkable how many inquiries I receive from people looking for single family homes to rent. These are families that do not want to live in apartments or other multi-family units. I’m far from the only agent receiving these calls. We are all getting sign calls asking if the owners of the homes we have listed would consider renting and or do a lease/purchase. The owners that occupy these homes are not in the least bit interested in either option. Why this sudden interest in rentals? Firstly, although interest rates are incredible banks are still holding on pretty tightly to their purse strings, not a totally bad thing considering a few years ago they were granting loans to anyone with a pulse. The second reason is the large number of people that have lost their homes to foreclosure. Unfortunately this group of previous home owners will be unable to purchase homes for many, many years. Conventional wisdom use to be a 3 year wait period after bankruptcy or foreclosure before you could purchase again. I have been hearing it could be more like 7 years.

A few years ago we had a glut of rentals and rents where going down. Now with rental inventory shrinking rents are rising and in my opinion will continue to go up. Don’t believe me take a look at what’s available for rent on craigslist. It’s pretty slim pickings in Ada County for single family homes, rents have increased and you will most likely find yourself in competition with multiple applications for each home for rent. There are homes for sale in the valley that will cash flow, couldn’t be a better time to buy investment property!

Boise Named #1

boiserealty — Sun, 25 Jul 2010 02:08:44 +0000

Making the cut once again! This time it’s Boise turn to show up as number one on a ‘best of list’. This time Boise has been named overall winner and top dog in the west by Outside Magazines August is 2010 Best Towns Survey isuue. The issue has yet to hit the newsstand for closer inspection but it is my understanding after reading the short blurb in the Idaho Statesman that the following criteria was taken into consideration : quality of sporting life, cultural vibrancy, resiliency of economy (huh ?) and stability of housing market (really big huh??). Second place went to Carbondale, Colorado.

On Friday August 23rd Barbara Corcoran was doing her ever interesting piece on the Today show where she lists good property deals in different parts of the country and low and behold she presented a lovely home for sale in Meridian – a McMansion complete with a pool and half a dozen bedrooms. What was most interesting about the segment was her comment that the Boise/Meridian area was doing well because of stable employment…what do these people know that we don’t know? Granted at an average of about 10% unemployment in Idaho there are places in country that are in worse shape but I don’t think we are stable…

Especially after Idaho made another auspicious list – Idaho is the state cutting the highest number of state jobs. Idaho has reduced its state employment by 6.9% between June ’09 and June ’10 easily leading the nation in state job cuts. Second place on this list was Hawaii trimming its employments roles by 4.5%. Local government jobs are up 2.7%.

Major Price Reductions?

boiserealty — Thu, 22 Jul 2010 00:09:33 +0000

It is often alarming to pull up the days MLS listings and see 151 new listings and 410 listings with price reductions. To the casual observer this may appear to be panic sales, a holy cow what’s going on with the market moment. When real estate brokers see these numbers they realize it’s highly unlikely to be a mass sell off by individual sellers but rather reductions by a specific builder or vacant lots in a subdivision. This time we can thank this number skew to CBH Homes who appears to have reduced their entire inventory – this is a guess not a fact – but regardlss they have reduced the price on street after street, sub after sub of homes. In most cases the reductions are minor, but that along with the still incredible interest rates make it an great time to buy!

Congrats Boise and Meridian!

boiserealty — Tue, 20 Jul 2010 03:05:31 +0000

Two cities in the treasure valley made ‘best of’ lists this past week. Two very different lists. The first CNN.Money 100 Best Places to Live put Meridian at 62. Woohoo Meridian way to go! The rest of the country, or at least CNN Money has recognized Meridian for the safe family friendly enclave it is with a gazillion public parks (ok it’s really 18) affordable housing and access to higher education (think BSU,NNU and CWI) skiing less than an hour away and all the cultural attractions in Boise. It doesn’t surprise me Meridian made the cut.

The second ‘Best of’ is PETA’s Top 10 Vegetarian – friendly cities which doesn’t really surprise me. I think overall Boise is a city of many choices, many of them healthy vegetarian/vegan choices. What kind of surprised me was the specific inclusion of what most people around here consider a burger joint. OK, the Boise Fry Company does have great fries as well as an awesome selection of fry sauces but honestly I think most people think beef (or buffalo) but veggie burgers, who knew?