Posts Tagged ‘Boise County homes’

2012 Wilderness Ranch Idaho Annual Real Estate Sales Report

February 4, 2013

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Our Annual Review of Real Estate sales in Wilderness Ranch for 2012 and your 2013 forecast.

By: Paul Heim & The New View Team

Wow what a year!  While I had forecasted in last year’s report that we had passed the bell curve and would see an increase in market values for 2012, the market surpassed what anyone had expected or predicted.  We saw an unprecedented turn around in the Treasure Valley real estate market.  Overall values increased anywhere from 10% to 15%. These gains were primarily in homes under $350,000 but higher priced homes benefited also.

What were the causes and effects?  What we witnessed was a market correction.  It showed that homes had become undervalued.  I like to use the Circuit City analogy.  ‘Best Buy won the war’, … however I would bet Circuit City had way more customers the last four months they were open during  their  ‘Going Out of Business Sale’.  Best Buy had no way to compete with their prices those last months, but after their biggest competitor was finally gone, they knew they would see a spike in their growth and profit.

Likewise, as the banks ‘Going Out of Business Sales’ (foreclosed homes) were nearing a completion, the average seller was not able to compete with these prices.  We then entered a period of contraction.  This simply means we had more buyers than available listed properties.  Supply and demand rules ensued.

With the low inventory of listings on the market, we often dealt with multiple bids in the Valley when homes were priced competitively.  But how did Boise County and Wilderness Ranch fair in comparison? 

In 2012 East Boise County finally crossed an important barrier.  For 18 months we had no sales over $230,000 and that was causing difficulty in appraisals.  Not that the value wasn’t there in higher priced homes, just that appraisers couldn’t validate them for the lenders and the lenders need the appraisals to issue the loans.   The New View Team was able to complete two high-end sales (Boise County, but not in WR) very early spring, (cash deals) that helped remove that barrier and set precedence for every other sale and refinance that occurred moving forward in 2012.

Boise County tends to lag behind the Boise Valley (Ada County) by six to twelve months typically.   The Boise Valley saw a noticeable turn in the market starting the fourth quarter of 2011 so we anticipated it to carry over to Boise County by spring, but as summer set in it happened better than anyone had expected.  No complaints here!

Here are some graphs to illustrate key trends in the Boise Valley and East Boise County Real Estate Markets

Idaho Mountain Real Estate Stats

Homes in Idaho

How home sales compared in Boise County Idaho and Wilderness Ranch 2003 through 2012

2013 Forecast:

Boise is still seeing a contraction as developers try to re-group and get approval on new parcels through the hoops of planning and zoning for building.

I expect to see more homeowners (who were previously tight on the current value vs. what they owe) attempt to list in 2013, now that values have increased.  Nationally, home prices are predicted to increase 1% to 3%, but I predict Treasure Valley real estate increases to be somewhere between 3% to 5% conservatively.

In part, this projected increase will be due to a rebound in land values, which affects ‘over all’ home values.

Boise County, I believe, will see the START of a land recovery in Spring of 2013.  Whether it will do as good as housing did in 2012 is yet to be seen.  If you are looking to invest, then NOW may be a good opportunity to consider land, prior to a potential rebound.

I would suspect we will see more building and new construction homes taking place in Boise County in 2013.

There are some other exciting things happening in Boise County potentially for 2013 and we will keep you updated with them as the year progresses.  Some highlights are:

–          The opening of the Hot Springs in Idaho City which will help this end of the county economically.

–          Dr Matt Nelson’s new Family Practice office, which will be located directly across from the old Rock’s Lodge.

If you have any real estate related questions, please feel free to call or email us anytime, or visit our website!  We would love to hear from you.

Paul Heim & the New View Team

(208) 344-5700 – office

(208) 794-8175 – Paul Mobile

http://www.NewViewRE.com

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Wilderness Ranch 2011 Annual Real Estate Report

February 1, 2012

Annual review of real estate sales in Wilderness Ranch for 2011 and forecast for 2012.

The city of Boise and the Treasure Valley area was a mixed bag.  We actually saw a price increase of about 3% in homes under $150,000 mostly due to low interest rates, affordability and bank owned opportunities.  Many were multiple bid situations.  East Boise County always seems to lag the Valley in the curve.

So how did Wilderness Ranch fair for 2011 in the real estate market.  Sales and values were below average but considering the market and economic climate there were some pros and cons.

For starters in 2011 there were no sales in all of East Boise County over $230,000 which was extremely uncommon. I expect that trend to break this spring.

We had a total of 14 sales in Wilderness Ranch and two in Hidden Bowl, our close neighbors.  Of which I was party to 11 of the transactions in Wilderness Ranch, four of which were land sales.   I also moved two homes in Hidden Bowl off Daggett Creek.  Land sales were dismal as most people were taking advantage of  the competitive pre-owned homes market.

There were a total of 22 Home listings in WR for 2011 with 10 home sales; that makes a 45% absorption rate from list to sale which is phenomenal when compared to the rest of E. Boise County.  Our number of home listings were pretty average and much lower than the last three years as we have sold a lot of the excess inventory that was held over from the 2008 and 2009 market.

East Boise County in all had 134 Home listings (not including WR) and 43 Home sales; which was basically a 32% absorption rate.  So WR has consecutively outsold the County in general year over year. Proving that WR is a good place to buy with.

I currently have four homes pending sale in WR, two are short sale and two are non distressed.

Now for the nitty-gritty of it;  Of those WR sales there were seven that were distressed property; i.e. bank owned and/or short sale.  However I expect to see less distressed property in 2012 which I will cover in our forecast.

To summarize;

  • 22 Homes listed in all
  • 10 home sales
  • 4 land sales
  • 45% Absorption rate on homes sales (odds of your home selling) which was above the 2010 average.
  • Average Days on market was 85,
  • Average list price was $152,
  • Average sold price was $137,74
  • Average price per sq foot was $71.71
  • Highest price per square foot was $100 per sq foot
  • Lowest sales price per square foot was $41 per sq ft.
  • There are 2 non distressed pending sales
  • There are 2 short sale pending sales

The overall average was skewed by a few smaller lower quality and bank owned properties, but I would determine the average value of a well cared for home in WR at around $85 to $103 per sq foot depending on quality of finish, views, acreage and other amenities.

So how did we compare to the rest of  East Boise County?  There were 59 home and land Sales in total (not including WR), of which we had;

  • 134 Homes listed in all (not including WR)
  • 43  Home Sales
  • 16 land sales
  • 32% absorption rate for home sales
  • 98 Average days on market
  • $111,457 Average list price
  • $103,802 Average sold price
  • $57.64 Average price per sq ft

2012 REAL ESTATE FORECAST;

The Federal Reserve has alluded that it will maintain its current interest rates through 2012.  Which I had anticipated since they want everyone focused on the elections.

As we all know we’re not out of the woods yet; but barring any unforeseen economic crises (holds breath) I do believe we are past the bell curve on the foreclosure market. We will yet see many more homes complete the foreclosure process and banks still have a back flow to list.  However as the year progresses we should start to see a gradual decline.  I suspect another 18 months before this market really becomes a part of our past.

I don’t foresee too much activity in land sales for 2012, though it more than likely will be an improvement over the last two years.

My anticipation is we will see a few more home listings this year than last year and as long as pricing is right and interest rates stay low, my goal is to increase our absorption rates by at least 10%.  If you have not had a chance please visit http://www.wildernessranchhomes.com and if your on Facebook send us a like and feel free to post a comment or a picture.

I look forward to assisting each one of you.  please feel free to call or write if you have a question.  Always glad to help.  You may email me at buyboise@gmail.com or phone me at 208 794-8175 Mobile or 208 344-5700 Office

Sincerely,

Paul Heim

New View team

http://www.paulsidahohomes.com

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