So apparently Mother Nature finally got the memo that summer is over. Now if we could just convince her that we’d like some Fall instead of jumping right into Winter!!
The fall season usually marks a slow down in real estate activity. You know, with school starting back up, the cooler weather, hunting season and… lets be honest, BSU Football being played who has time for buying and selling houses?!
Lets find out!
A New Normal?
It was last October that inventory–the number of homes listed for sale–in Boise (as well as Canyon County) peeked. November and December both saw big dips in the number of houses for sale in both markets even while buying stayed steady. And then, starting in January those inventory levels started to stabilize at those new, lower numbers.
Truthfully, who knows? No one can say why for sure. Especially me.
However, one possible reason was the “Robo-signing Controversy” that was all over the news last fall. It happened to be in October that many big banks said they would stop the practice. CertainlyÂ not having the banks put as many foreclosed homes onto the market could be one contributing factor in the roughly 40% drop in listings we’ve seen year over year.
There are unquestionably other factors as well. One reason we know the banks can’t be the only reason why is because we haven’t seen a big dip in the percentage of distressed properties between then and now. Roughly 60% last September and still strong at 56% this past September.
That would seem to indicate that many home owners decided to NOT to list their home as well. Perhaps they just decided it wasn’t worth trying to compete with all the short sales and other distressed properties that were / are on the market at bargain basement prices.
Give Me the Numbers
Sorry, I realize I’m pontificating at this point. Here are September’s numbers:
Â The Breakdown
More of the same. Fewer listings. More buyers.
Sellers: I wouldn’t call this a “sellers market” (although some would) since home prices are still soft. If you are in a position to sell, or need to short sell, you should do it. There is less competition for more buyers. Its really that simple.
Buyers: I wrote up an offer today for a client who got a 30-year 3.75% fixed interest loan with 3.5% down. Read that again. Its not a typo. If that isn’t a sign the apocalypse is near, then what is?