Many people are worried about national real estate numbers and the Caldwell homes sales numbers are no different. The current economic crisis has scarred the real estate landscape like clear cut logging in the 70′s did to our forests. The fact is that the biggest crisis in real estate Idaho has experienced has been from the slowing job market. Nationally the jobless numbers are at 7.2% and Idaho is no different. Unemployment is causing home sales numbers to drop significantly, but even more worrisome is, it is also increasing the default/foreclosure rate. Mix that with the lower income levels in Idaho and you have a real estate market that may take a long time to recover. Aside from areas in east Caldwell real estate in the Treasure Valley has depreciated about 15% in the last year to year analysis. I know this sounds like a lot of bad news, but it isn’t necessarily bad.
There is a few bright spots in the Caldwell homes sales numbers and that is that foreclosure’s are slowing, and that is due to many people who had market dependent jobs have already lost their homes. In other words, everything that can be shaken loose has been shaken. This means that the current downturn in real estate Idaho has experienced will begin to recover if rates remain low, and inventory will begin to be absorbed quicker. The price trend in east Caldwell real estate are still pretty sound and will continue to be stable as the preference for the area remains.
The Caldwell rental market is improving as well as property managers have started to do fewer credit checks due to the higher number of foreclosures, and the necessity of the people who have lost their home still needing to rent a home. The Caldwell rental numbers and the Caldwell homes sales numbers may seem to be in a negative correlation with each other but as more new home owners seek to get into home ownership that will change. The slow down in real estate Idaho has experienced has been a large contributor to the foreclosure/default volumes locally. The real estate industry supplied many jobs to Treasure Valley residents. Now with Micron laying off some workers in east Caldwell real estate may suffer a second blow, but will improve within a few years.
Caldwell homes sales are starting get back into balance and the negative factors are starting to be cancelled out slowly. It may take years for the market for real estate Idaho once had to return, but it will. It was previously one of the best values in the West and the unstable parts of the market get shored up, and the California real estate market stablizes it will be again. As the California real estate market stability spreads east Caldwell real estate will return to a normal market with marginal 3-6 percent annually appreciation as it was before, just with better home prices now.