Activity and Prices By historical standards, 2007 was a good but not record setting year for Mountain Home. Sales of both new and existing homes were off about 19% from 2006. During the same period, the median price of existing homes increased by 12% to $152,000 while new homes saw a price drop of about 5% to $192,000. Much of the decrease in new home prices is because fewer, more expensive homes on acreages were built in 2007.
Marketing Time The average marketing time (from date of listing to date of closing) is currently 59 days, an increase of 7 days for the year. However, a recent spike in the average number of days current (unsold) listings have been on the market suggests that the 59 day figure will increase significantly in the near future.
2008 Forecast Although activity has recently (and noticeably) slowed, Mountain Home continues to escape the carnage that other areas of the country are experiencing. One of several factors in Mountain Home's favor is that relatively few sub-prime loans were made so a market flooded with foreclosure properties (and the potential for a "value death spiral") seems very unlikely.
In summary, based on what I'm seeing now, it's unlikely that 2008 will look much different than 2007 - Buyers will maintain the upper hand and Sellers will need to forget the double digit appreciation rates of the past few years and price their homes according to current market conditions.
A Small Side of Facts To Go With the Steady Diet of Media Misinformation Although I feel that "shooting the messenger" might be a bit much, I sure would like to kick him in the shins. As a tonic to the daily dose of hysteria and hype we're being fed every day, I'm including a couple of facts from the Office of Federal Housing Enterprise Oversight that I think will be enlightening.
- The annualized, national price decline is currently 1.5% - a far cry from the numbers you've probably seen.
- Price changes, up or down, are based entirely on local market conditions. Over the past four quarters, homes in Merced, CA have lost 13% of their value while those in Idaho Falls, ID have risen by nearly 12% with a 9% increase in the Mountain Home area. Opportunities
Contact Me to learn about the best values available in the Mountain Home, Idaho real estate market and for general market updates.