Eagle, Idaho Real Estate Stats

We now have 490 single-family homes (on lots or acreage) for sale in Eagle.

This is 250% more than the 202 homes that were for sale in January and 50% more than the 325 homes that were for sale in June.

The current average asking price for a home in Eagle stands at $642,045; down from an average of $672,315 last January.

More interesting is the $700,000+ market segment in Eagle, with 156 homes available at a breathtaking average asking price of $1,086,093!

In this segment, only 56 homes have closed year-to-date, which calculates out to an absorption rate of 6 homes/month, resulting in a whopping 26-month supply of listing inventory (if no more homes are listed!).

Boise, Idaho Real Estate Stats

As of this morning, we have 4,534 single-family homes on the market in Ada County.

The average asking price is $370,910; the median asking price is $299,000.

This represents a 50% increase in listing inventory since June, when 2,978 single-family homes were on the market.

Our listing inventory has tripled since January, when we had approximately 1,550 homes for sale.

We are adding about 300 homes to our listing inventory each month; if this trend continues through the winter, we will have 6,000 homes for sale by next Spring ~ quadruple the listing inventory of a year earlier.

7,811 Ada County homes have closed escrow year-to-date, indicating an average absorption rate of 822 homes closed per month, resulting in a 5.5 month supply of listing inventory.

It is interesting to note the average asking price for a home in Ada County remains at $371,219 while the average closed price is $267,384.  This doesn’t mean that the average seller is conceding $100,000+ to sell their home; it means that the mix of homes actually selling is below the average asking price.

I am seeing a lot of price reductions, seller-paid buyer’s closing costs, and offers of bonus commissions to buyer agents!

This is good news for buyers, but many sellers have yet to realize they are now in a buyer’s market.

The Downsizing Realtor

When a very young-sounding, new female agent called me about one of my listings the other day, I commented on the abundance of listings in Two Rivers.

For those of you who aren’t familiar with Two Rivers, let’s just say  it is very upscale and the place to live.

Anyway, she commented that she would soon be putting her 5,000 sq. ft. home in Two Rivers on the market because she and her husband were “downsizing”.

To put this in perspective, it’s useful to note that there are currently 51 homes listed in Two Rivers @ an average asking price of $1,016,339.

This contrasts to 27 closed sales in Two Rivers in the first 9.5 months of 2006, with an average selling price of $639,500 (did you notice  the $376,839 difference between what is for sale and what has sold?), resulting in an absorption rate of 2.84 sales per month.

That means there is an 18-month supply of listing inventory in Two Rivers if no more homes are listed!

Now, mind you, I don’t know anything about these people, and they just might be  young and rich.

It is entirely possible; it really is.

But, I also noticed the name of their construction company on my Caller ID.

I wonder how exciting life could become for this young couple, living in perhaps a $1m home, when both of their incomes are dependent upon building and selling homes in a buyer’s market?

Sure hope they don’t have an adjustable loan that began life with a teaser interest rate.

Foreclosures Spike In August

August foreclosures were up 53% from a year earlier, according to RealtyTrac,  a company that tracks foreclosure data.

115,292 properties went into foreclosure in August, representing a 53% increase from a year earlier.

That number is the second-hightest monthly foreclosure total of the year, following 117,151 in February.

California foreclosures are up 160% since last year, and the formerly hot Nevada real estate market recorded a 24% increase.

Yes, life is starting to get very exciting for homeowners with those nifty adjustable loans that are (surprise!) actually starting to  .  .  .  . adjust!

There will soon be a lot of homeowners experiencing that phenomenon known as “too much month left at the end of the money” as they watch their mortgage payments double!

Think we’re in for a soft landing?

Wait until we see the full effect of the estimated $400-500 BILLION of adjustable loans that are set to adjust this year.

I have seen estimates as high as $2 TRILLION (yes, that was a “T”) of adjustable loans that will adjust in the next two years!

A lot of those loans were originated when rates were below 5%, or were written with “teaser” rates below the then-prevailing rates.

Further compounding the problem is the fact that many of those homeowners bought as much home as they could afford, based upon their initial interest rate.

Rental Market Remains Strong

A recent survey of Boise-area single-family rental properties revealed an overall vacancy rate of just 3.8% for the 2nd quarter of 2006.

This contrasts with a 10.8% vacancy rate during the first quarter of the year.

Underlying reasons include higher property values and higher interest rates, resulting in fewer buyers being able to qualify to purchase their own home.

The survey also indicated that rents are starting to rise for the first time in several years as the rental market tightens.

Good news for investors; bummer if you are a renter.