Sunnier Skies Are Likely on the Way

By Lawrence Yun

March 2011

We faced a big hurdle in the early 1980s when interest rates rose to as high as 18 percent, and we faced another hurdle after the housing "bubble" burst. The number of home owners did not grow from 2005 to 2010, even though the U.S. population grew to 308 million people—13 million more than in 2005. Instead, during that period the home ownership rate dipped to 66 percent from 69 percent.

We know those bubble years were fueled by artificial demand, so the 69 percent home ownership rate we had in 2005 was likely artificial as well. Thus, today’s 66 percent home ownership rate brings us back to a sustainable level.

When you combine this healthy home ownership rate with our country’s projected growth to 340 million people by 2020 (and 420 million by 2050), you can bet our industry’s long-term prospects remain bright. It’s the short-term economic pressure we have to worry about, but even here the news is brightening.

Manufacturing output has been rising. The stock market has recovered nicely. Companies are flush with cash. Consumer confidence has rebounded from very low levels, and jobs are being created.

Against this improving picture, we can expect to see some release of the demand that’s been building up for the last three years. Rising rental costs will also likely tip more renters into home ownership.

Putting these and other factors together, existing-home sales are projected to rise 8 percent to nearly 5.3 million units nationwide this year and possibly to 5.5 million in 2012. At this level, home ownership is solid, but it’s also sustainable given our level of population growth.

Statistics (Sold) – Mar 20 – Mar. 26th 2011

• Single Family 166
• Single Family with acreage 15
• Condo’s 5
• Town Homes 5
• Building Lots 17
• Duplex income property 1
• Fourplex income property 2
• Apartment income property 0



• Commercial Sales 3
• Farm 2
• Ranch 1
• Dairy 0

Spokane Company will build its first Treasure Valley store

The store is slated to open in early spring 2012, according to Jeff Philipps, president and chief executive officer of Rosauers Supermarkets Inc. The company expects to hire about 120 employees for the new store.


Southern Idaho is “a market that we’ve looked at in the past, and it’s a market we think is underserved” by grocers of natural, organic, ethnic and specialty foods, which Rosauers will offer, Philipps said.

The Meridian Chamber of Commerce is “always happy to see new employers come to town, new businesses (to) bring more people into Meridian to shop,” said Teri Sackman, the chamber’s president and CEO. “Competition is good.”

Read more: http://www.idahostatesman.com/2011/03/24/1578266/rosauers-market-coming-to-meridian.html#ixzz1HWCPz2oI

Buying pitfalls for Condos

While the market is good for deals of all makes and types, some caution should be taken when you are conducting your due diligence when your target home is a condominium.

Short sales and bank owned repossessions are plentiful and good bargains, but if you don’t research the rules and regulations of complexes that are grouped within a board of control you could be in for a rude awakening.

In the perfect world way back in the old times, lets call it pre 2005; condo units were built and sold rapidly. Now that we are in the time of lets say re-adjustment, regulations may have changed to accommodate the new owners of the community. When you write the contracts make sure you request a current non owner occupied percentage to owner occupied residences. Many lenders in today’s world my not load if the tenant occupied condo is above 10%. This would make it a cash deal only. Not only for the money side of the deal, but make sure that your buyers can qualify and be accepted to the closed condo system.

Finally make sure you research the insurance validity of the building as a whole. Just like the owners of the individual units have gone under, so may the board itself. Take a few extra steps when evaluating the property to save big headaches later.

Statistics (Sold) – Mar 13 – Mar. 19th 2011

• Single Family 158
• Single Family with acreage 19
• Condo’s 10
• Town Homes 4
• Building Lots 9
• Duplex income property 0
• Fourplex income property 2
• Apartment income property 1



• Commercial Sales 4
• Farm 0
• Ranch 1
• Dairy 0


These real estate statistics are taken from the Intermountain MLS for the week of March 13th – Mar 19th 2011

First-Time Home Buyers Prepare for Best Buyer’s Market in Recent History

RISMEDIA, March 18, 2011—While affordable housing prices, ample inventories, and historically low interest rates signal ‘buyer’s market’ for investors or move-up buyers in many U.S. markets, inexperienced first-time buyers may not know if the time is right to make a move into real estate.

“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move, Inc., a leader in online real estate. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, down payment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. While homeownership may not be for everyone, it is the right choice for hundreds of thousands of people. Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.” (Click the link to read the entire article).

Boise Spring Home Show

If you need something to do, plan to attend the Boise Spring home show. Just follow the link on this blog to get directions and further information.

Spectra Productions presents the Boise Spring Home Show March 17-20, 2011 at Expo Idaho (formerly Western Idaho Fairgrounds), Boise, ID

BACKYARD MAKE-OVER, RAISING URBAN CHICKENS, PRODUCTS! Admission: Adults $5, seniors $4, Children 12 and under are Free.

Restaurant for Sale in Boise ID

We have the January Sales Statistics available to view now. Give us a call for more information.

Steak House and Saloon. Lindy's is a popular destination bar and restaurant with a robust lunch trade in the bar along with a quiet white napkin dinner menu in the Steak House.

The bar has a warm friendly atmosphere with full Boise City Liquor License, pool tables, seven television sets and several different game tables plus dart competitions. The bar restaurant is open 7 days a week and the Steak House is opened 6 days. The clientele is mostly local and has been very stable.

Statistics (Sold) – Mar 6 – Mar. 12th 2011

• Single Family 144
• Single Family with acreage 19
• Condo’s 3
• Town Home 5
• Building Lots 10
• Duplex income property 5
• Fourplex income property 2
• Apartment income property 0


These real estate statistics are taken from the Intermountain MLS for the week of March 6th – Mar 12th 2011

Hop off the fence!

Most buyers that you talk to are getting edgy when you discuss signing on the dotted line or continue to wait. But hold it, what are they going to wait for? Most have said that they don’t trust the economy and are waiting out to see what transpires. Then there are those that are observing the prices of the market and hoping that it continues to go down.

The migration has begun the ready to buy now people are ready to buy now. Stabilization is not a factor now since no one knows when stabilization will occur. Real Estate is always going to be around, it is cyclic in nature and before you know it the current cycle will be done and those riding the fence will have missed out. Waiting out anything now days is a gamble. About the only thing that you can be sure of is the fact that everything will take some time to even out.

If you have the means to buy now and if you are willing to buy now then, now is the time. Don’t think back and tell yourself, I wish I had bought back when prices where low.

Statistics (Sold) – Feb 27 – Mar. 5th 2011-02-27

• Single Family 189
• Single Family with acreage 19
• Condo’s 7
• Town Home 11
• Building Lots 17
• Duplex income property 3
• Fourplex income property 1
• Apartment income property 1
• Town Home 11


These real estate statistics are taken from the Intermountain MLS for the week of February 27th – Mar 5th 2011

But first, it’s today!

While listening to the today show I was catching up on the Sheen saga. Barbara Corcoran, the Real Estate Guru was being interviewed about what helps homes sell. Now while I don’t agree with everything that ms. Corcoran has to say, mainly because of some differences in selling areas, I do agree with the fact that everyone is looking on the web for real estate deals.

She gave some good examples of what buyers are looking for in an online website. The topic comes down to pictures. Photos are the main reason that people go to the website. I have preached this many times on this blog and websites. If you don’t have good looking and explanatory pictures on your listings then you are going to do your properties an in justice. Photographs are what the clients log on to view properties. Besides the price being published photos are the second highest reasons to search real estate websites.

Give your clients a good chance of competition a place professional grade photographs that don’t miss lead the searching public. Make the pictures give a true and honest depiction of the property. Don’t publish photos that are old if the home is five years old. Photos will sell the property in areas that words can not express.

Is there a bank game?

Last year I submitted an offer on a bank owned property that was quickly rejected by the bank without a counter offer. The bank is a local home grown bank that has lent to many builders and buyers in the area. This was a bit of an eye opener because we had talked to many of the bank decision makers and were told that we are in the ball park for the comps.

Now this property is vacant land and has grazing cattle that are obviously being fed well and taken care of. While discussing the offer with my client we decided that we would not submit another offer.

Four months later my client friend decided he would like for me to investigate the possibility of submitting another offer. I looked on the MLS for starters and found that the property had been re-listed after our offer with the same price. I then did another search to see how many properties the bank has listed. There were several in the same county that have been on the market for several months at higher than comp prices. There were none sold for the previous year, at least on the MLS.

My conclusion is that the bank is holding the properties and waiting for better real estate times. Is there some sort of ulterior motive for the non sale of the properties? I don’t have a clue...