It’s myth busting time! Le Bois Realty has it’s hand on the pulse of real estate here in the Treasure Valley. We’ve heard rumors and rumors of rumors and things you might’ve heard from someone who heard it from someone else and it’s high time some of the misconceptions concerning real estate were dispelled! Is it a good time to buy? It is not? What are mortgage rates doing?
MYTH: No one is buying.
TRUTH: While without a doubt the incentives for buyers outweigh those for sellers in the current market long time investors and first time buyers alike are recognizing good deals when they see them – and they are buying! Sales of investment properties, second homes, and vacation properties went up in 2011 and with their combined market share rose to the highest levels since 2005. Investment homes alone surged up over 64% from 2010.
Despite a sluggish economy 8 out of 10 second home buyers said it is a good time to buy and nearly half of investors said they would be likely to purchase another property in the next few years.
NAR chief economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”
MYTH: Nothing is selling.
TRUTH: The real estate market – especially here in Idaho – is bursting at the seams with the most active areas being the dwindling supply of homes under $200k.
FACT: In 2011, 71 percent of residential sales fell between the $100,000 and $300,000.
The number of sales (closed transactions) and the volume of inventory show us two clear signs of a healthy real estate market; the strict buyers only market may be soon seeing a turn around.
MYTH: The market is stagnant.
TRUTH: Pending home sales have been on an upward trend since reaching a low last April; they are up well above a year ago. Low interest rates combined with continuing low prices have fueled the markets recovering and will continue to move it forward in the future. Inventory is moving and multiple offers are back on the scene at the buyers table.
Do you have questions about real estate?
We’re always glad to help educate today’s home buyers and sellers and our experienced Idaho real estate agents are among some of the best people in the industry to bring your questions to. Feel free to contact us with your queries or visit our main site to begin searching for homes in Idaho today!