Not everyone thinks its sunshine and unicorns in the Real Estate Market…..

http://finance.yahoo.com/blogs/daily-ticker/house-prices-nowhere-near-bottom-says-analyst-125114464.html

In the Boise, Idaho real estate market, we have had a very good 2012 sales season.  Median prices have recovered about 25% from their lows.  This puts many homeowners back into an equity position, although there are many homeowners who are still “underwater” on their home values.

The analyst, Keith Jurow, says there is a large shadow inventory of bank owned homes that will hit the market.  Now, that doesn’t mean much in my market, Boise, Idaho nor may it mean anything in your individual marketplace.  Yes, there are bank owned homes in my market, in fact, I’ve been watching a couple of homes in my neighborhood go into their second winter without being listed for sale.  Eventually they do get on the market.  By controlling how much and how fast inventory is added, the banks can mitigate their loss.

For prospective homeowners in the Boise, Idaho real estate market, I would say don’t wait and try to time the bottom.  Interest rates are at historic lows and by all logic, will be higher in the future.  You might find that the home you are waiting on sold within days of being listed.  Furthermore, even a 1.0% increase in the historically low interest rates will equal a $112 higher payment per month on a $200,000 loan.  It wouldn’t take much to make interest rates jump from the low 3’s into the 4’s.

Anyway, I guess I will keep my sunny outlook for our market and try not to get hit by falling real estate unicorns.

 

 

 

 

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