The Boise real estate market has faced its own set of challenges and some of the circumstances facing it are getting worse. Although the job market across the nation has had substantial losses and may even get worse, the Boise job market has been devastated. The largest local employers have been gutted by the recent recession. Micron computers has laid off thousands of Boise residents. Hewlett Packard has cutback it's work force as well. With the Idaho based corporation Albertson's recent purchase by a grocery chain from the Midwest, many of the jobs have been sucked back to Minneapolis.
With jobs losses set to continue to increase in the nation's most remote urban area, Boise may have some stiff challenges in the near future economically. With mining and timber, the industry of years gone by, just about completely halted, jobs are getting few and far between. It does not bode well when the most positive thing you can point out happens to be that employment benefits have been extended another 6 months.
This may sound like a "worst case scenario" for Boise real estate, but there is some positive news.
The sales of new homes and built inventory has started to see a nice uptick. This increase in sales numbers can be attributed to a few things, but mostly due to the decline and stabilization of home prices. As home prices line up with local rent rates, investors start to increase the buyer pool, increasing demand. This combines with the current present level of buyers, mostly consisting of people who are recovering their credit and first time home buyers. This surge in home buyers has brought a nice degree of stability to the Boise real estate market and will help in eliminating some of the stagnant inventory.
Another bright spot is that the S & P report indicated that the Boise real estate market is close to the bottom price point that it will reach. As much as it can be trusted, this report indicates that the price bottom will be reached in the 3rd quarter of 2009, that is not far away. After that appreciation is predicted to be slow and steady for a few years, before any periods of rapid appreciation will be experienced. The effect all of this will have on the REO numbers in Boise will be a stabilizingly positive one.
Although many signs are remaining negative, like the foreclosure numbers and job loss numbers, the increase in buyers will buoy prices and create some certainty with investors and prospective homeowners alike. Add in the stabilization of the lending institutions, and the return of their profitability, the real estate market recovery is coming closer each day. As lender's increase flexible lending programs for home buyers and investors, home inventory will continue to decrease and eventually overtake the foreclosure rate. At that point, investing in real estate will be a solid and promising investment once again. Boise REO's will continue to be available for the next several years, but you should not miss your chance to get a great deal today!