According to the National Association of Realtor® website, “Existing-home sales in August gave back some of their strong gain in July but remain above year-ago levels, according to the National Association of Realtors®”. However, the Boise real estate market bucked the national trend and posted higher sales during the month of August.
According to the Intermountain Multiple Listing Service, 511 homes sold during the month of August in Ada County which includes the Boise area. That number is just above the 510 homes sold during the month of July and is up 7.6% over the number of homes sold in August 2008. Many attribute the increasing number of home sales to the tax credit being offered by the Federal Government. Plus first time home buyers are cashing in on the steadily declining home prices. Median home prices in the Boise area are down about 15% from $200,000. in August 2008 to $169,900. in August 2009.
Another reason given for increasing home sales is a program offered by Idaho Housing and Finance Association. This program finances the down payment for those first time home buyers allowing them to finance their down payment and repay the loan when they receive their tax credit refund. Many first time buyers are finding that they can pay off their down payment loan and still have money left over to pay down their other debt. However, this program runs out the end of November when the tax credit expires.
Although home prices have seen a dramatic decrease, home prices seem to be settling in to their 2004 levels. Boise real estate prices increased dramatically during the 2004-2006 real estate boom making home prices out of reach for most first time home buyers living in the Boise area. Now as prices have come down, the buyers have returned - the question is whether they will keep returning when the tax credit expires.
This market information was provided by Boise Realtor Karen Geselle. She has been cosistantly in the Circle of Excellence and when she is not helping her clients locate real estate she enjoys traveling, golf, church avtivities and gardening.