Boise REOs Set to Continue Increasing
The Boise real estate market has faced its own set of challenges and some of the circumstances that confront it are getting worse. Although the labor market across the nation has had substantial losses and may even worsen, the Boise labor market has been devastated. The largest local employers have been destroyed by the recent recession. Micron computers have fired thousands of residents of Boise. Hewlett Packard has also reduced its work force. With the recent purchase of the Idaho-based Albertson Corporation by a Midwestern supermarket chain, many of the jobs have been absorbed by Minneapolis.
With the possibility that job losses continue to rise in the most remote urban area of the nation, Boise may have some difficult challenges in the near future economically. With mining and wood, the industry of the past years, almost completely stopped, jobs are becoming scarce. It is not a good omen when the most positive thing you can point out is that the labor benefits have extended another 6 months.
This may sound like a "worst case scenario" for Boise Real Estate, but there is some positive news.
Sales of new homes and the built inventory have begun to see a good rebound. This increase in the number of sales can be attributed to some things, but mainly due to the decrease and stabilization of housing prices. As house prices align with local rental rates, investors begin to increase the group of buyers, increasing demand. This is combined with the current current level of buyers, which consists mainly of people who are recovering their credit and first time buyers. This increase in homebuyers has brought a good degree of stability to the Boise real estate market and will help eliminate some of the stagnant inventory.
Another positive point is that the S & P report indicated that the Boise real estate market is close to the lowest price it will reach. As much as you can trust, this report indicates that the minimum price will be reached in the third quarter of 2009, which is not far away. After that, it is predicted that the appreciation will be slow and steady for a few years, before any period of rapid appreciation is experienced. The effect that all this will have on the REO numbers in Boise will be stabilizingly positive.
Although many signs are still negative, such as foreclosure numbers and job loss numbers, the increase in buyers will increase prices and create some certainty among investors and potential owners. In addition to the stabilization of lending institutions and the return of their profitability, the recovery of the real estate market is getting closer every day. As the lender increases flexible loan programs for buyers and investors, the housing inventory will continue to decline and eventually exceed the rate of foreclosures. At that time, investing in real estate will be a solid and promising investment once again. Boise REO will remain available for years to come, but you should not miss the opportunity to get a good deal today!