Below is an expanded version of an article I wrote for Eagle Magazine in December, 2009:
Eagle, Idaho Market Review, 2009
By Jeff Martel, Broker – 43° North Real Estate
We have all heard the adage, “what goes up, must come down” and Eagle Idaho Real Estate exemplified this market dynamic. During the Real Estate bubble years, Eagle experienced unprecedented equity growth. Loose lending standards coupled with an influx of out-of-state equity pushed the Eagle market ever higher. Million Dollar spec homes went from a rarity to the norm.
The Eagle Real Estate market has come down and is now back to pre-boom equity levels – which is the type of reset that needed to happen. The Eagle marketplace became out of reach to a majority of the Treasure Valley. Eagle has always and will always command a premium over other areas – but the disparity became too large to sustain. Eagle is small, sought after because of the lifestyle and amenities, and with limited opportunities to purchase, there will always be a high demand for Eagle Real Estate. Now that Eagle home prices (as well as the rest of the Treasure Valley) have become more realistic, the sales pace has begun to increase. Prices will begin to find equilibrium and then, eventually begin an upward swing.
Below are some statistics from this past year:
|
Area 900
|
|
Month
|
Active Inventory
<$300K
|
Months to sell
|
Active Inventory >$300K
|
Months to sell
|
|
Jan
|
102
|
11.3
|
356
|
23.7
|
|
Feb
|
101
|
11.2
|
357
|
23.8
|
|
Mar
|
97
|
9.7
|
359
|
27.6
|
|
Apr
|
111
|
11.1
|
353
|
27.2
|
|
May
|
125
|
10.4
|
318
|
24.5
|
|
Jun
|
116
|
9.1
|
318
|
19.9
|
|
Jul
|
116
|
8.3
|
287
|
16.9
|
|
Aug
|
115
|
7.7
|
258
|
13.6
|
|
Sep
|
112
|
6.6
|
229
|
11.4
|
|
Oct
|
119
|
7
|
210
|
10.5
|
|
Total Sold Jan-Nov <$300K
|
|
Total Sold Jan-Nov >$300K
|
|
|
201
|
|
197
|
|
|
Total Short Sale Sold 36
|
18%
|
Total Short Sale Sold 39
|
19%
|
|
Total REO Sold 55
|
27%
|
Total REO Sold 55
|
28%
|
|
Total Distressed Property
|
|
Total Distressed Property
|
|
|
91
|
45%
|
94
|
49%
|
The key statistic to take away from these numbers is that the inventory is going down and the sales pace is beginning to increase. Distressed properties are making up almost 50% of the sales – until this number begins to decrease there will be continued downward pressure on pricing.
Predictions
The Eagle Idaho Real Estate market will continue to be challenging for sellers and a boon for Buyers throughout 2010 and possibly into 2011 – especially in the above $300,000 price point. Solid price stability should begin in the first quarter of 2010 as long as distressed properties remain at current levels or begin to decline.
For Buyers
DON’T BELIEVE THE HYPE – Short-Sales may not be the best deal. Now is a great time to buy in the Eagle market – but you need to do your homework. If you want to buy a short sale, be prepared to wait. Although they are getting better, banks still take too long to respond. During the months it takes to get a response on a short sale – you could have already moved into a comparable property for the same price.
REO (Real Estate Owned) or Bank Owned properties offer a tremendous value, however they come with some baggage. Usually they are missing some or all of the appliances, maintenance has gone by the wayside, and now that we are in the cold months – winterization may have happened too late. Buyer beware!
For Sellers
Price it right and you will be all right! Don’t think about what the neighbor across the street got for their home 2 years ago – it just doesn’t matter. You need to be in the lowest 25% of comparable homes to garner a sale. It’s simple math really, if you are over-priced your home will not sell in this market. And remember, even if you were able to get someone to agree to a higher price – the home won’t appraise for that price and the deal will die – save yourself the trouble and price it right the first time!
Wednesday, February 17, 2010 at 3:16PM 