Jeff Martel

Before I get into inciting a revolt, let me give you the quick snapshot of our market here in Boise Idaho. Here in the Boise Idaho Real Estate Market, our sub- $200,'s market has really come alive. Lots of transactions, lot's of activity - Finally stability - HALLELUJAH! In the $200's to 300's things are starting to look better - not as good as below $200,000, but better. Above $300,000... not so much. Get into the upper-end homes above $600,000 and it's dead. Only the Bank Owned homes that cost over a million to build and are now selling in the $500's are moving...and moving fast! Multiple offers are now common on the Bank-owned properties.

So, back to the tile - it's time for a REVOLT! What do I mean? Well, we all hate not having control of a situation and any homeowner who wants to sell their home right now and is priced above $300,000 really has no control. So, collectively let's all take control of this situation. Most of these houses could never be rebuilt for the prices they are currently being dropped to so it's not that they are over-inflated - it's that the market is only wanting the entry-level pricing. So here is my 2009 revolt plan - but we need everyone on board - every homeowner who wants to sell and every agent wanting to help those houses sell. Collectively we all STOP lowering the prices and then we go the other way - RAISE PRICES. Put in the remarks that " The price of this home will go up by $1,000 per week until it's sold!". Boy, that will get the markets attention - don't you think. Let's shout out that we are done lowering our prices - if everyone joins in the buyers will have to jump in or they will miss the opportunity.

I am a contrarian with a dream... who's with me?

A New Direction In Real Estate
Jeff Martel | Broker / Marketing Director
7400 West State Street, Boise Idaho 83714
Cell: 208.860.3696 | Fax: 888.452.5257
Resale Division: http://www.43re.com
New Home Division: http://www.NewConstructionBoise.com

The five “Do’s” every Buyer should know right now:

1. Do buy in 2009... or you will definitely whine! What I mean by this is that there has not been a buying opportunity like the one in DECADES. NAR's Housing Affordability Index rose 13.6 percentage points in January to 166.8, a new record high. Houses are ON SALE NOW!
2. Do understand that the Government will Stimulate things... Lot’s of things. Governments think they can “buy” their way to prosperity... And to some degree they can “jump-start” things. But Government action by increasing money supply (or as they like to call it stimulus) has a tiny little after-effect – INFLATION. So, when the government says “ooppps” we printed to much money and this little inflation thingy isn’t looking too good – they increase INTEREST RATES. Currently interest rates are so low – the last time they were this low Leave It To Beaver was still running “new” shows... Not the reruns we’ve all become accustomed to!
3. Do understand what VALUE means. Don’t confuse value with cheap. Right now it’s very easy to be price focused – and yes you should be – but Buyers MUST look for value in a home purchase. A cheap home is just that – cheap... And they tend to remain that way. A home that has true VALUE can be purchased today at a great price that will ensure a good equity return in the future.
4. Do make a choice to not believe the electronic Cyclops in your living room. The media only can report on what has happened. They use fancy charts and graphs. They have neat touch-screens and experts that went to really, really good schools. But, at the end of the day they are reporting to you on a time lag of at minimum 60 days and more likely 6 months. The only true way to know what a market is doing is to talk to a Realtor or a Title Agent. Why? BECAUSE THEY ARE ON THE FRONT LINES. Realtors and Title Companies know about transaction volume before all others – and trust me – transaction volume is up – deals are being made. By the time the media reports that transaction volume is up for 3 months in a row... They are at least 5 months behind on calling the bottom.
5. Do buy a home for the right reasons. Homes are for you and your friends and family to gather in and to enjoy life in. Your home is not a reality show. Your home is not a bank. Your home is where memories are made, first steps are taken, and life is lived... That’s it. Pretty simple stuff – but we ALL forgot what a home truly is. A home is your connection to community, to family, and to friends. Buy a home in 2009 for all the right reasons and then we all will be better off in the long run!
   

A New Direction In Real Estate
Jeff Martel | Broker / Marketing Director
7400 West State Street, Boise Idaho 83714
Voice | 208.860.3696
Fax | 888.452.5257
Main Brokerage: http://www.43re.com
New Homes: http://www.NewConstructionBoise.com

OK, I'll admit it - I got swept up in the anticipation that the government was going to save us all from ourselves. I know better, but somehow it just seemed like a package to help housing was our only hope! How wrong I was to start thinking that way - we don't need the Government to help us - WE NEED US TO HELP US!

Take a minute, relax, and think about the reality of our situation. It's not as bad as we are trying to make it seem. There are still buyers and sellers. Real Estate is still a necessary and economically viable business. Yes - it isn't as easy as it once was, but it is still very rewarding. We are back to the basics of Real Estate that many of us forgot. And - we will all never forget these times. Times like these make us re-assess what is important to us, what makes us get out of bed each day.

So, now that we can all get past waiting for the government to help us, we can get back to doing what we do best - helping ourselves and our colleagues succeed! We are now more focused, we understand our market better than ever before, and as a group who have made it this far - we are the true professional Realtors. We have the knowledge and skills that homeowners and buyers need right now more than ever. We live and breath Real Estate and have a passion for what we are doing like never before - so let's all use this to our advantage. Let's get out there with a new sense of optimism and let's help serve our market better than we ever have in the past.

We know that today people will make choices that will drastically change their lives for the future. The purchases made today WILL result in small and large fortunes made in the future! "If only I had bought in 2009..." we'll hear that statement again and again. So, now is the time to re-assess your business plan, become more strategic, and get out there and make it happen. I want everyone to resolve to be successful in 2009. No more waiting for the government to help... it's not going to happen. We need to create action now!

So, what are you going to do to make 2009 the best year of your career?

A New Direction In Real Estate
Jeff Martel | Broker / Marketing Director
7400 West State Street, Boise Idaho 83714
Voice|Fax: 888.452.5257 XTN 701
Main Brokerage: http://www.43re.com
New Homes: http://www.NewConstructionBoise.com

Market Update for South West Boise Idaho Real Estate Market - reffered to as "South of the Freeway"

Note: MLS areas 500 (S. Boise), 550 (SW Boise), 1000 (SE Meridian) & 1010 (SW Meridian)

We have found that the statistics are pointing to a market imbalance that is quickly approaching. There ARE NO NEW STARTS to speak of in the semi-custom home market and we could conceivable be out of New Construction inventory within 6-9 months. Given the lag time to build supply back into the market, we see a possibility to a change in the overall marketplace given the reduction in supply. For a more detailed analysis, visit New Construction Consulting.

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0 - $199,999

• 4.8 MONTHS OF INVENTORY
  
• Avg. 67 sales per month over the last 3 months
  
• New Construction Inventory is down 18% over the last 6 weeks…..total of 124
  
• 88% of the listings priced under $115 per sq.ft. VERSUS 93% of the sales priced under $115 per sq.ft.
  
• 20% of the active listings are being “marketed as short sales” VERSUS 19% of the sales made were sold short.
  
• New Construction makes up 39% of the active listings VERSUS 34% of the sales.
  
• 65% of the market is CBH, Hubble, Aspen

ACTIVE LISTING AVERAGES

HZ Village Tuscany

AVG Price $200,000 $193,000

AVG Size 1589 sq.ft. 1507 sq.ft.

AVG $ per ft. $123.00 $129.00

$200,000 - $249,999

• 9.4 MONTHS OF INVENTORY
• Avg. 15 sales per month over the last 3 months
• New Construction Inventory is down 18% over the last 6 weeks…..total of 40 homes in this price point (4 of which are “To Be Builts”)
• 71% of the listings priced under $120 per sq.ft. VERSUS 90% of the sales priced under $120.00 per sq.ft. (NOTE: this discrepancy is important and shows continued downward pricing pressure)
• 23% of the active listings are being “marketed as short sales” VERSUS 21% of the sales made were sold short.
• New Construction makes up 28% of the active listings VERSUS 26% of the sales.
• 24% of the market is CBH & Aspen

ACTIVE LISTING AVERAGES

HZ Village Tuscany Cedar Edge

AVG Price $227,000 $237,000 $229,000

AVG Size 1825 sq.ft. 2002 sq.ft. 1957 sq.ft.

AVG $ per ft. $124.00 $118.00 $119.00

NOTABLE SOLDS since 12/15/2008

· TUSCANY – BOISE HUNTER HOMES – 2500 SQ.FT. – 245K - $98 per sq.ft.

· TUSCANY – BOISE HUNTER HOMES – 2100 SQ.FT. – 235K - $112 per sq.ft.

· HAZELWOOD NORTH – SYRINGA RESALE – 2326 SQ.FT. – 203k - $87 per sq.ft.

· CEDAR EDGE – BLACKSTEAD – 1711 SQ.FT. – 218K - $128 per sq.ft.

· BROWNSTONE – LEGEND CO. – 2412 SQ.FT. – 209K – 87 per sq.ft.

$250,000 – $299,999

• 6.6 MONTHS OF INVENTORY
• Avg. 14 sales per month over the last 3 months
• New Construction Inventory is down 43% over the last 6 weeks…..total 19 homes in this price point (6 of which are “To Be Builts”)
• 66% of the listings priced under $120 per sq.ft. VERSUS 100% of the sales priced under $116.00 per sq.ft. (NOTE: This is an extremely important fact! The Hazelwood Village and Sonata Hills communities are not participating in this price point….and…..the Hazelwood Village community is not capable of competing in this price point due to lot size, garage size & sq.ft. size of our competition. It is my opinion that Sonata Hills product should trend to this price point.)
• 10% of the active listings are being “marketed as short sales” VERSUS 50% of the sales made over the last 6 weeks were sold short.
• New Construction makes up 21% of the active listings VERSUS 33% of the sales

ACTIVE LISTING AVERAGES

Note: 1 of the 2 active listings in Sonata is a resale

Sonata Hills Tuscany

(2 listings) (12 listings)

AVG Price $288,000 $277,000

AVG Size 2129 sq.ft. 2445 sq.ft.

AVG $ per ft. $135.00 $113.00

$300,000 - $349,999

· 9 MONTHS OF INVENTORY

· Avg. 7 sales per month over the last 3 months

· New Construction Inventory is down 42% over the last 6 weeks….total 15 homes in this price point (4 of which are “To Be Builts”)

· 47% of the listings priced under $130 per sq.ft. VERSUS 80% of the sales priced under $110.00 per sq.ft. (Note: Very important statistic and shows continued downward pricing pressure)

· 10% of the active listings are being “marketed as short sales” VERSUS 36% of the sales made over the last 6 weeks were sold short.

· New Construction makes up 23% of the active listings VERSUS 36% of the sales.

ACTIVE LISTING AVERAGES

Note: 4 of the 11 actives in Tuscany are resale

Note: 2 of the 5 actives in Sonata Hills are resale

SONATA SONATA TUSCANY TUSCANY

RESALE NEW RESALE NEW

AVG Price $327,000 $340,000 $335,000 $334,000

AVG Size 2861 sq.ft. 2688 sq.ft. 2714 sq.ft. 2789 sq.ft.

AVG $ per ft. $114.00 $126.00 $123.00 $120.00

$350,000 - $399,999

· 13.6 MONTHS OF INVENTORY

· Avg. 4 sales per month over the last 3 months

· New Construction Inventory is down 37% over the last 6 weeks….total 15 homes in this price point

· 12% of the active listings are being “marketed as short sales” VERSUS 100% of the sales made over the last 6 weeks were sold short.

· New Construction makes up 37% of the active listings VERSUS 0% of the sales over the last 6 weeks.

· Note: This price range is POISON and there is NO LONGER any predictable sales production in this price range.

ACTIVE LISTING AVERAGES

SONATA TUSCANY

AVG Price $372,000 $378,000

AVG Size 2950 sq.ft. 3100 sq.ft.

AVG $ per ft. $125.00 $122.00

NOTABLE SOLDS since 12/15/2008 (Both sold SHORT)

· 4.12 acres w/large home – 3997 sq.ft. - $379,000 - $95.00 per ft.

· 1.3 acres w/large home – 4389 sq.ft. – $380,000 - $86.00 per ft.

NOTE: All statistics compiled by the New Construction Consulting Team manager Joe Grubiak - he can be reached at 208-514-9258 | joe@43re.com

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A New Direction In Real Estate
Jeff Martel | Broker / Marketing Director
7400 West State Street, Boise Idaho 83714
Voice|Fax: 888.452.5257 XTN 701
Main Brokerage: http://www.43re.com
New Homes: http://www.NewConstructionBoise.com
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