Our Meridian Blog

In normal years past we’ve usually seen the highest monthly sales during the month of June or July. It appears that our market has settled down to a normal flow, even if the total sales figure is smaller than we’d like.  Single Family home sales in Ada County for the month of July were 489.  That is from early numbers, and they might find a few more reported in the next week or so.  That is slightly below June, which looks like a normal sales pattern.  I mentioned last month that the percent below a year ago was better at 25%, and that has  held in  July at a  26% decline.

Another encouraging number is a slight decrease in single family homes inventory, to 4634.  This leaves out townhomes, condos, and homes with acreage.  Pessimists may point out that small decrease is not significant, but I see this as the first month all year we haven’t had more homes for sale than we started with.  The pending contracts number is steady at 661, which is 12 fewer than the beginning of July, and about 10% fewer than last year at this time. 
Last year we had more than 7 months worth of inventory this month.  Today we have at least 10 months.  That rise happened early in the year, and the majority of those homes are existing homes for resale, not new construction.

Sellers are finding it hard to adjust to current market prices.  Those prices aren’t set by Realtors, or appraisers, or tax assessors, they are set by people who actually paid money for homes in this market.  There is still a gap between what buyers want to pay and what sellers want to receive.  And as has been the case all year in our market, the best conditioned homes with the best prices have been selling, while the rest just sit.

Ada County For June

Another modest improvement for Single Family home sales in Ada County for the month of June continues our string of higher sales numbers.  There were a total of 535 SF properties sold during the month.  Last year there were 710 sales for June.  The bright spot of that comparison comes while looking at the trend, which also continues to improve.  Remember that our declines are getting smaller each month, going from a 42% decline at the beginning of the year to a 25% decline in June.

Another trend to watch is the number of homes currently listed.  As expected, this number has increased each month as more homes come on the market.  Part of this is seasonal.  We started the year with around 3800 active SF listings, and that number climbed rapidly each month, as it does in any normal year.  The increase over the last month has slowed considerably, for a total of 4648.  That is only 80 more than last month, and roughly where we were last year at this time.  Encouraging news, I’d say.  And pending sales are down slightly to 673.

One item I found interesting at the beginning of the month was a look at the rental market in Ada County.  As prices for homes rose so rapidly in 2006, and home sales  slowed  down in 2007,  the number of available homes for rent went down sharply and the prices firmed up.  Vacancy rates last summer for 3 bedroom, 2 bath homes  got into the low single digits, and rents got up close to $980-$1000 in some neighborhoods.  This summer however, we see that trend reversing.  Vacancy rates by some measures are around 7-8%, and the price is back around $910-$925.  This gives us an overall housing market that is full of choices at much more attractive prices, whether you are a renter or a buyer. And with interest rates still low, but starting to creep up, I give the nod to the buyers.

Meridian Real Estate Market

Currently, the market looks like it is softening up a little bit.  I just pulled the numbers for both Ada county real estate, and for the Meridian market.  For the county, we have 4661 active listings for single family homes, which is very comparable to the beginning of the month.  Countywide pendings  remain close as well, at 678.  But the softness shows up in the closed sales.  For the county, we’re at 260 compared to 412 at this point last year.  That is a 37% decline, instead of the 25% we saw for June.

Meridian’s numbers track the county’s.  Currently there are 1366 active listings, and 208 pending sales.  We’ve seen 73 transactions close in July so far, compared to 107 last year.  And while that is only a 32% decrease, it is still weaker than the June sales comparison.  We’ll have to see if we can make up ground before the end of the month, and with 10 more days, it is entirely possible for those numbers to change.  I’ll keep you posted.

By the way, if you’re curious how sales have been in your own neighborhood, feel free to call me, or leave a question in the comments. 

Despite all the doom and gloom we sometimes hear on the TV and in the papers, the foreclosure situation in Idaho is not threatening to ruin the economy or the housing market.  Certainly we’ve gone through a period of loose credit, and a number of folks will be affected by it.  But in the broad view, Idaho is not struggling like many other states are with foreclosures.

RealtyTrac, a California-based company that tracks foreclosures nationwide, said 666 homes in the state were in default in June, including 469 that received notices of default that signals the start of the foreclosure process.

Apparently that gets us a #21 ranking nationally, and to give the Statesman its due, they repost that that is 18% below the number from a year ago. The state of Idaho has a number of resources for homeowners who are struggling and might be looking at a foreclosure in the future.  You can find these resources at the Idaho Department of Finance website.  There is information and links for a number of mortgage, debt, tax, and foreclosure topics.  You can also call the Homeowner Hope hotline at (888) 995-HOPE for information and assistance.
 

Meridian Dairy Days is coming at the end of this week, June 18th through the 21st, highlighted by the parade on Friday evening.  This is truly one of our best small town events here in Meridian, and the weather looks like it’s going to be perfect.  Last year there were thousands of folks who turned out to see the parade, which features tractors, horses and riders, a number of very creative floats, the cheer squads , bands, and teams from the local schools, lots of classic cars, and a few racing cars from Meridian Speedway.  A great time for everyone, celebrating our dairy heritage, and our small town Idaho community.

The parade stages on Watertower, and gets started at 7pm, running North down Main Street, then back up 2 1/2 and 3rd Streets.  Come early, pick your spot, and remember to cheer for the Meridian Lions and the Rodeo Queens.

There will also be a carnival at Storey Park from Wednesday through Saturday, and the Meridian Chamber’s Pancake Feed returns Thursday evening beginning at 5pm with a symphony to follow.  Friday night also marks the start of an arts and crafts fair featuring 80 vendors.

The Dairy Days celebration wouldn’t be complete without cows and goats, so on Saturday, all day, there will be a cow and goat show, along with a number of educational exhibits for everyone to enjoy.  See the Chamber of Commerce website for more info.  See you there!

Home sales in Ada County during May showed a modest improvement over April’s numbers, with 504 single family homes closed for the month.  While that doesn’t seem like much, the monthly increases are showing a normal trend for this time of year.  We have a market that is acting normally, albeit at lower levels than we are used to seeing.  Last year we had 735 homes sold, so our sales as of May  this year are down 33% from a year ago.  Remember that in April we were 34% behind, and before that we had been as high as 42%.  We seem to be trending in the right direction.  Today, sales for the month of June to date are only 16% behind the same date last year.

Currently there are 4658 active listings on our MLS, which is a bit higher than last year’s 4524, and nearly one hundred more than we had at the beginning of the month.  That doesn’t help the sellers to get better prices for their homes, since there are still plenty of choices on the market, in all price ranges.  The lower end homes are selling well, as would be expected, with the best conditioned homes occasionally drawing multiple offers.  Price and condition remain the key to selling homes in this market.
 
There are 718 pending contracts on the market now, which is slightly higher than last month.  What is encouraging about that is the comparison to last year.  The decline from a year ago in sales has been getting better as I mentioned.  But the difference in this year’s pendings to last year’s is getting better even faster.  Pendings at the end of May were only 19% below a year ago, where sales were 33% below.  I would expect that to translate into firmer sales figures going through the summer months, and so far that is holding up.

Meridian Home Sales for May 

The sales numbers for Meridian show the same kind of trend as the County numbers.   In May there were 151 Single Family Homes sold this year, compared to 226 in 2007.  That is a 33% decline, same as the County figure.   Right now for June, there have been 75 homes sold, compared to 88 this time in June 2007.  What an improvement!  That is only a 15% decline, which is the best we’ve seen in quite some time.  Pending sales have held steady since the end of May, currently showing 239, and active listings have risen comparably to the county number.

Everything considered, it is still a buyer’s market.  There is plenty to chose from out there right now, and prices are back to levels that make much of Ada County very affordable.  Affordability is the issue that is helping our market firm up.  We all saw how affordability was reduced as our prices shot up in 2005 and 2006.  Now that some of the heat has escaped from the market, prices have come back to levels that are once again more in line with the Treasure Valley job market.  That is good for most of us.

Mortgage rates are starting to inch up, so now might be the time to make a move, if buying or selling a property is on your list this summer.  Sellers need to price their properties correctly, and then have them looking their very best, in order to find a willing buyer.  Homes priced even a little over market are not getting showings, where others that are priced correctly are seeing many showings and even multiple offers.  And if you are a seller, remember that the building codes for new construction have just changed, resulting in more home than before.  2×6 construction, more insulation, better furnaces are some of the improvements you’ll find in today’s new homes.  Buyers, don’t overlook new, and sellers, understand that your competition just got a little tougher.  It’s an exciting market for all of us.

Did you get your new property tax assessment in the mail this past week?  If you did not, be on the look-out.  Mine arrived on June 2nd.  Here in Idaho our property taxes pay for schools, law enforcement, fire protection, some highways, libraries, and much more.  Rates vary across the state, and even from neighborhood to neighborhood.  So, with that in mind, for buyers and sellers, here are five things to find out  about property taxes:

1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.  Your Realtor can also find this for you through the MLS or from the County Assessor’s office.
2. How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.  In Idaho the law requires that all property be assessed annually at market value.  Market value is determined by comparable sales and the condition of the current market.  In some areas this year, you will find that the value of the “improvement” went down slightly (but the “land” value went up, so in most cases the total value still went higher).  An appraiser must visit each property once every five years.
3. Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property.
4. Is the amount of taxes paid comparable to other properties in the area?  Here is another thing your Realtor can find out for you.  If the amount is not in line with similar homes in the neighborhood, it might be possible to appeal the tax assessment.   You won’t get a lower rate than your neighbors, but the assessed value might be adjusted.
5. Does the current tax bill reflect any special exemptions? For example, many tax districts offer reductions to those 65 or over.  Here in Idaho, we have a Homeowners Exemption which lowers the value that taxes are paid on by 50%, with a maximum of  $100,938 for 2008 taxes.  There are also income and other situations that might qualify an owner for tax reductions.  See the County Assessor’s website for specific details on these programs.

It’s going to be a busy weekend coming up for all of you garage salers and farmers’ market fans.

The Meridian Farmers’ Market is in full swing now, and will be every weekend through September.  The event takes place every Saturday from 9:00am until 1:00pm, in the parking lot of the Boise First Community Center on Eagle Road. 

Since I posted earlier in the week about the Hunter Pointe Garage Sale I have been driving around the neighborhoods of Meridian, and it appears that many of the local communities are having garage sales the same day as well.  This Saturday (tomorrow!), besides Hunter Pointe, I know there will be neighborhood sales at Paramount, Cedar Springs, Summerfield, Sundance, and Chateau Meadows.  These are all neighboorhoods in the northeast end of Meridian, around the Locust Grove, Meridian Road, Fairview, Ustick, and McMillan Road area.  Plenty to do and see this weekend, so get out and enjoy the hot weather.  And say hello to all our neighbors! 

 The Hunter Pointe HOA would like to invite you all to their Annual Neighborhood Garage Sale this Saturday, May 17th.  Hours are from 8:00 am until 3:00 pm, and they are expecting many homeowners to participate.

 If you are a Hunter Pointe owner, there is no formal sign-up, so simply get your goods on display Saturday morning, and have a good time.  The weather forecast is for temperatures to be in the 90’s by Saturday afternoon, so it should be an excellent morning for buying and selling. 

 Hunter Pointe subdivision is located just south of Ustick Road on the west side of Locust Grove.  See you there.