The Boise real estate market has been facing its own challenges and some of the opposing circumstances are worsening. Although the labor market across the country has suffered substantial losses and could even worsen, the Boise labor market has been devastated. Larger local employers have been shattered by the recent recession. Micron computers have laid off thousands of Boise residents. Hewlett Packard has also reduced its work force. With the recent acquisition of a Midwestern grocery chain by the Albertson company based in Idaho, many jobs have been brought back to Minneapolis.
With job losses that will continue to increase in the country's most remote urban area, Boise could have serious economic challenges in the near future. With mining and wood, the industry of the past years, almost completely stopped, jobs are becoming scarce. This is not a good sign when the most positive thing you can point out is that the employment benefits have been extended by six months.
This may sound like a "disaster scenario" for Boise Real Estate, but there is some positive news.
Sales of new homes and built stocks began to rise sharply. This increase in sales can be attributed to a number of factors, but especially to the decline and stabilization of house prices. As home prices align with local rental rates, investors are starting to increase the pool of homebuyers, which is increasing demand. This combines with the current level of buyers, mainly consisting of people who are recovering their credit and first time home buyers. This surge in homebuyers has brought stability to the Boise property market and will help eliminate some of the stagnant inventory.
Another positive point is that the S & P report indicated that the Boise property market is close to the lowest price it will reach. To the extent possible, this report indicates that the floor price will be reached in the third quarter of 2009, which is not far off. After this appreciation should be slow and steady for a few years, before any periods of rapid appreciation will be experienced. The effect that all this will have on REO numbers in Boise will be positively positive.
Although many signs remain negative, such as the number of foreclosures and the number of job losses, the increase in buyers will support prices and create some certainty with investors and potential homeowners . Add to the stabilization of credit institutions, and the return of their profitability, the recovery of the real estate market is getting closer every day. As lenders increase flexible loan programs for homebuyers and investors, home inventory will continue to decline and eventually exceed the foreclosure rate. At that time, investing in real estate will again be a solid and promising investment. Boise REO will continue to be available for the next few years, but you should not miss your chance to get a good deal today!