As with almost all the country, Boise real estate has suffered a dramatic decline in activity and prices in recent years. With eager home owners hoping for some positive change in the local housing market, many people are starting to wonder when it will start to turn around. The situation has demanded some very fast action from authorities, and they have done what they can with the markets reacting accordingly.

The most active strata in the Boise Idaho real estate market is the entry level home market. Sales usually slow down for winter, so once that is factored in; home sales have clipped right along. The first time home buyer tax credit has lifted this sector of the market dramatically and continues to spur growth. The latest round of appreciation that we experienced was due to the federal home buyer tax credit program.

The middle of the Boise real estate market, consisting of homes between about 200 thousand and 400 thousand dollars is very slow at this point of the market. With financing getting easier to get due to the return of appreciation and consequently primary mortgage insurance, numbers should pick up soon. Construction rates, or new home starts, are minimal in this sector of the market, which means that people are tending to buy the smaller and more energy efficient starter homes.

The jumbo loan market is reporting higher than expected defaults, so luxury housing in the Boise Idaho real estate market is not doing so great either. This increase in default or foreclosure will cause primary mortgage insurance rates to go up and begin to exclude many buyers consequently.

With so many homes available as reo properties, the Boise Idaho real estate land market has started to experience a steady increase due to availability of rural acreages with homes. The statistics belie the fact that lot numbers are so low, due completely to the fact that construction and homes starts are so slow. As for the sale of housing developments, it has not been this stagnant in quite a while and it is due in large to the lack of funding available on the lending market for subdivisions.

Each cold season brings a big slow down to the real estate activity, but this winter I think many buyers will be out trying to wrap things up before the April cutoff for the federal tax incentives. The worst case scenario basically says that we may even experience a dramatic drop in the rate of sales this summer which wouldn’t bode well for our market at all.

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