Boise Idaho Real Estate Report For January 2010!

As with most of the nation, Boise real estate has suffered a dramatic drop in activity and prices in recent years. Many home owners are afraid that factors effecting markets in the area will no turn around any time soon. There is some good news on the horizon and it is reflected in the market numbers for area.

In regard to Boise real estate, the starter home, or entry level market is doing great. Home sales are higher than previous years and even months, after factoring in the typical winter lull. The first time home buyer tax credit has lifted this sector of the market dramatically and continues to spur growth. The latest jump in appreciation over the summer was due almost exclusively to the tax incentives granted by the federal government.

The middle of the Boise real estate market, consisting of homes between about 200 thousand and 400 thousand dollars is very slow at this point of the market. With financing getting easier to get due to the return of appreciation and consequently primary mortgage insurance, numbers should pick up soon. Construction rates, or new home starts, are minimal in this sector of the market, which means that people are tending to buy the smaller and more energy efficient starter homes.

The Boise real estate luxury home market is the slowest due to the fact that jumbo loans have started to be reported as defaulting in higher numbers in recent weeks. This increase in default or foreclosure will cause primary mortgage insurance rates to go up and begin to exclude many buyers consequently.

The Boise real estate land market which includes building lots, developments and acreages has seen a decent uptick as many people are spending their tax credit on acquiring acreages. When you look closely at the numbers you will see that lots are moving very slowly which is logical since construction is also low. The sales of developments is abysmal but that too makes sense given the lack of financing available to would be developers right now.

As the winter turns into spring we will see a brief rush in the Boise market with buyers trying to get a home under contract in time to make the April deadline for the first time home buyer tax credit. Past that we may see a slow down over the course of this summer, especially if rates rise and markets do not improve.

Boise Idaho Real Estate Report For January 2010!