As we enter the second month in this year, 2007, we find that we have more buyer activity in the Boise Metro area of Idaho. Last year we had buyers coming to view homes but they had homes to sell somewhere else before they could purchase here. They were coming from Florida, Massachusetts, West Virginia and Virginia, California and Arizona.
Now we have buyers coming that have accepted offers on their present homes and are ready to buy. We wrote six offers in January and expect several to be written in the next week as well as more opportunities to list properties for sale.
Sellers are still resistant to reductions in price, even though the accepted offers are only after reductions in price over a several month period of being on the market. Until we are able to stabilize, we expect to write offers for less than the asking price or asking the seller to pay closing costs or other fees at full price. We have many more contracts expiring without a sale because the original contract wasn't long enough for the market conditions, or price reductions were not taken to allow the house to be priced well and allow it to sell.
The market is getting better and the rental vacancy rate in Boise, Idaho is less than 5% and in some areas less than 3%. We work closely with our partners in property management and when we purchase a home to be a rental try to get it leased up before the deal closes.
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