Eagle Idaho Real Estate Statistics–March 2010

Below you will find statistics regarding the real estate activity during the month of February:

Closed Sales – February 2009
# Closed: 19
Average Sales Price: $407,505
Median Sales Price: $398,000

Closed Sales – February 2010
# Closed: 29
% Change: +52.6%

Average Sales Price: $380,523
% Change: -6.6%

Median Sales Price: $365,000
% Change: -8.3%%

Pending Sales
# Pending: 77
Average Asking Price: $366,665
Median Asking Price: $335,000

Available Homes
# Available: 330
# Vacant: 120
Vacant Percent: 36.4%
Average Asking Price: $459,420
Median Asking Price: $350,000

Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.

source: boiseblog.com

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To obtain a free market evaluation for your home Click Here
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Meridian Idaho Real Estate Statistics–2010

Below you will find statistics regarding the real estate activity during the month of February:

Closed Sales – February 2010
# Closed: 108
% Change: +31.7%

Average Sales Price: $185,052
% Change: -8.9%

Median Sales Price: $160,744
% Change: -12.4%

Closed Sales – February 2009
# Closed: 82
Average Sales Price: $203,049
Median Sales Price: $183,400

Pending Sales
# Pending: 250
Average Asking Price: $188,249
Median Asking Price: $169,000

Available Homes
# Available: 1,000
# Vacant: 575
Vacant Percent: 57.5%
Average Asking Price: $198,957
Median Asking Price: $174,900

Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.

source: boiseblog.com

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Boise Idaho Real Estate Statisics–March 2010

Below you will find statistics regarding the real estate activity during the month of February:

Closed Sales – February 2009
# Closed: 290
Average Sales Price: $209,422
Median Sales Price: $181,625

Closed Sales – February 2010
# Closed: 365
% Change: +25.9%

Average Sales Price: $197,431
% Change: -5.7%

Median Sales Price: $165,000
% Change: -9.2%

Pending Sales
# Pending: 877
Average Asking Price: $203,269
Median Asking Price: $164,534

Available Homes
# Available: 3,684
# Vacant: 1,905
Vacant Percent: 51.7%
Average Asking Price: $240,280
Median Asking Price: $174,900

Data does not include condominiums or townhomes. Data taken from Intermountain MLS on3/5/10 and pertains to single-family residences on lot or acreage.

source: boiseblog.com

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
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Boise metro area above average in terms of negative equity

Below you will find a recent article from the Idaho Business Review which discusses homes “under water” within our community.  In my opinion, the  Boise Metro area is above the national average for negative equity because of  the dramatic increase in market pricing during the “boom time”.   Hence why the “correction” has been so dramatic, as well. 

Negative equity soars in Boise metro area

In the Boise metro area, 34 percent of homes are now worth less than what is owed on the residence.

Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.

The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009. In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.

“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” saidMark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”

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Mistakes to avoid when flipping a home

There are pitfalls when purchasing a promising piece of property to flip—just ask the experience home flippers.  Huge rewards can be found by learning from others mistakes when beginning your home flipping venture.   The market is ripe with opportunities to make extra money when flipping with distressed property such as short sales and bank owned property often selling for 20-40 percent less then current market value.  However, it is important avoid the following pitfalls:

Don’t start flipping homes if your financial situation is not “healthy”.  Ensure that you have the following necessities in place prior to making your first flip:

1)      Full-time job or a steady stream of income

2)      A separate account with at least $10,000 set aside for repairs on your future flip

3)      6 months worth of living expenses in reserves

4)      Income which allows 10% of your monthly wage for savings or retirement

5)      Potential investment partner or partners

Don’t be without a business plan.  Create a personal financial budget, if you don’t already have one.  Next, create a businessfinancial plan that indicated the amount of capital set aside for repairing and remediating future properties that are purchased with the intent to flip. 
Don’t take on too many projects at once.  It is wise to begin the flipping process with just one home (unless you have a large backing).  Once your feet are wet with a successful flip then move on to the next. 

Don’t purchase a home “site unseen”.  Whether or not the home is in the most ideal area or the asking price is priced substantially lower than homes in the vicinity, never purchase a home without having a proper visual and structural inspection.  Flipping a home requires estimating the amount of capital it will take to repair any cosmetic or structural damage.  Purchasing site unseen is a gamble not worth taking!

Don’t purchase a home to flip if you are unable to carry the loan for an extended amount of time.  Ignore the urge to flip homes if you can’t afford 2 mortgage payments for an extended amount of time.

Don’t purchase a home with structural problems.  A leaky basement, water intrusion and large cracks in the foundation are an invitation to huge out-of-pocket expenses (along with other structural defects).  Carpet and paint is one thing—mold is another.  The goal is to pay as little as possible to spruce up the home for the next purchaser.

Don’t quit your day job (unless you have a lot of cash lying around).  You find THE home that is going to net you a years salary at your “real” job and think, “I should just quit and do this full time!”  Think it through.  You may net a year’s salary from one flip yet you may not be able to do it consistently.  Ensure that you have a knack for turning property at a significant profit prior to considering house flipping full time.

Don’t start without a solid exit strategy.   Good intentions unfortunately do not develop into dollars.  Have a plan if your flip doesn’t perform in that manner that you thought.

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The 7 Short Sale Myths

1)  Short sales rarely get approved.  FALSE

TRUTH:  Although short sales are difficult, acquiring or selling a home as a short sale is not impossible.  More and more short sales are being approved on a monthly basis and the new HAFA guidelines should help making short sales easier to facilitate.  Most importantly, it is essential to acquire the services of a short sale specialist who is experienced and knows the “ins and outs” of short sales along with systems used to make the sale a success.

2)  Banks are waiting for a bailout.  Thus, making it difficult to purchase a short sale or sell your home as a short sale.  FALSE

TRUTH:  Banks have already been bailed out and seem to be doing everything possible to avoid another foreclosure.  More and more banks are pursuing short sales and agents who understand how to process the transaction.  In most cases, it costs that bank 30% more to let the home go into foreclosure rather than approving a short sale.

3)  You must be behind on your mortgage in order to be eligible for a short sale.  FALSE

TRUTH:  In the past it was very difficult to obtain a short sale approval from the bank.  However, the financial institutions mindset has reversed.  Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall insolvency.  If you meet any of the mentioned requirements then you are eligible to sell your home as a short sale without being delinquent on your home loan.

4)  Buyer are not interested in short sales and tend to avoid them like the plague.  FALSE (for the most part)

TRUTH:  Some buyers are not interested in short sales due to the lengthy waiting periods–especially when there are time constraints associated with the purchase similar to the First Time Home Buyer Tax Credit or Move-Up Credit.  On the other hand, those that can be patient tend to obtain some very good buys–some which are sold for over 30% under current market values. 

5)  Selling your home as a short sale is an embarrassment.  FALSE

TRUST:  Most sellers would prefer that the community wasn’t aware of the financial hardships at hand.  However, 1 in 5 homeowners within the United States owe more on their home then what it can be sold for.  Even wealthy owners must stop the bleeding at some point.  Those who sell their home as a short sale rather then letting it go into foreclosure should be congratulated.  Check out my recent post which discusses this by clicking here.

6) The bank would much rather foreclose than bother with a short sale.  FALSE!!!

TRUTH:  The myth began in part to collection representatives working for the lender which would often state this myth in an attempt to collect the debt.  The realty is that banks do not want to foreclose on homes–it costs way too much.  An average foreclosure costs the bank 30% more to foreclose than to facilitate a short sale due to the holding costs, insurance, realtor fees and other miscelaneus fees needed to care for and sell the home.

7) There is not enough time to negotiate a short sale before the home is foreclosed upon.  FALSE

TRUTH:  This myth hurts homeowners the most.  The foreclosure process is lengthy.  It can take up to a year (or more) for the home to be foreclosed upon by the bank.  Nearly all banks will postpone a foreclosure with a legitimate contract for a short sale.  A postponement can be obtained within days of foreclosure.

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

Only 63 days left to claim the homebuyer tax credit!

Congress voted to extend and expand the First-Time Home Buyer Tax Credit program on November 6, 2009.  There is only 63 days (as of Feb 26, 2010) to claim it. 

The $8,000 tax credit expiration date has been pushed forward to Spring, requiring homebuyers to have an accepted written contract no later than April 30, 2010 and to be closed on the purchase by June 30, 2010.

“Move-Up” buyers were also provided an incentive to purchase with the expanded program.  Homeowners that have lived in their current residence for five out of the last 8 years are eligible for a tax credit of $6,500.   Don’t get confused by the “move up” lingo–a current homeowner can purchase a home that has less square footage and amenities than the current residence and still be eligible for the credit.  For example, my folks have decided to move from their 3000-sqft home into a 1000-sqft town home and are eligible to receive the incentive.

The tax credit’s basic eligibility requirement remain the same: 

• A home cannot be acquired through gift or inheritance
• A home cannot be purchased from an entity in which your are a majority owner
• All parties to the purchase must meet eligibility requirements
• A home cannot be purchased from a parent, spouse or child

There are some additional criteria that must be followed, as well.

First, the property being purchased cannot exceed a sales price of $800,000.  Second, household income thresholds have been raised to $125,000 for those who file their taxes singly, and $225,500 for buyers that file taxes jointly.

Don’t forget that the incentive is a true TAX CREDIT—not a tax deduction.  A tax filer who is eligible for the full $8,000 credit would receive a check from Uncle Sam for $8,000 if there is no tax liability for that particular year.  What a time to buy! 

A complete list of qualifying criteria is posted on the IRS website.  It is important to review your qualifications with a tax professional in order to determine your eligibility. 

Interest rates along with home prices are at an all time low.  Contact Matt for additional information and/or to take advantage of this once in a lifetime opportunity:  208-869-3469.

Just over 60 days to go . . .

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To obtain a free market evaluation for your home Click Here
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Rental income—a good indicator for real estate stabilization:

Most of my buyers and sellers are concerned about where home prices are headed and want to know whether or not it is a good time to either buy or sell.  I, along with most which have an interest in real estate, wish we had a crystal ball.  If we were so lucky.  Possibly the next best thing is to follow the rental income to establish current market conditions.

“If you look at the trend in rents to see where housing prices are headed, you’re looking at the right measure.” Says Yale economist Robert Shiller who is the co-developer of the S&P Case/Shiller Home Price Indices that monthly track residential real estate values nationally and in 20 metro areas.

In the past, people have been willing to pay a modest premium to own rather than rent a home with recent studies reporting that in 1999 rental income averaged 87% of the after-tax mortgage payment for dwellings of similar size in the same neighborhood.  This percentage changed when home prices skyrocketed.  By mid-2006, rental income had fallen to less than 60% of after-tax mortgage payments with investors banking on appreciation.  In some markets, owners of property were paying twice as much as renters for a similar property in the same neighborhood and in select pockets, owner monthly payments were three times more than the average of rental income.  Wow!

The 87% ratio of rental income to ownership cost for 1999 is a very good benchmark since it stayed around that level throughout the 1990’—prior to the steep rise in home pricing.  With that as our guide, one can conclude that the stabilization of home pricing is on the horizon. By the end of 2009, rental income on average was up to 83% of ownership costs!

Conditions vary from market to market so check with me on current market pricing in our area.  With historically low mortgage rates plus the homebuyer tax credits, this is a great time to be buying.  Call me today for a no-obligation consultation! 

*The idea for this particular post along with some misc statistics were used from an email sent from Guild Mortgage.

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To obtain a free market evaluation for your home Click Here
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Idaho slips out of top 5 for the most foreclosures

Idaho has slipped out of the top five for the most foreclosures, but expectations remain that the state will see a continue in its numbers.

RealtyTrac Inc., an online marketplace for foreclosure properties, Thursday said foreclosure filings increased 15% in January, compared to the previous year, but declined 10% from the previous month. Nevada, Arizona, California, and Florida posted top state foreclosure rates during the month. Further, RealtyTrac cautioned that the numbers may increase over the next few months.

While Financial News services writes The post-boom states of California, Nevada, Arizona and Florida still contribute more than half of filings, but Utah, Idaho and Illinois are starting to see foreclosures surge.

Only last week, it was reported Canyon County’s home defaults had dropped off in the last few months of 2009, but they came back with a vengeance in the first month of 2010.

The county’s foreclosures hit a high in January, rising from 214 filed in December to 365 filed in January for a total increase of 70.5 percent, according to IdahoDataProviders.com.

“What this all means is that you should brace yourself for a double dip in the housing market in 2010,” Charlie Nate, president of the foreclosure-tracking company, said in a release. “Look for local prices to still fall another 7% to 10% starting in the next few months. A bottom to the housing market and the beginning of a real recovery is unfortunately still at least one year away.”

Ada County’s number of foreclosures filed dropped 8 percent to 408 in January this year, a 19 percent increase from January 2009.

Short sales dropped 1.3 percent in the two counties in January, a lull which Nate calls the “calm before the storm.” He expects a new flood of short sales this year caused primarily by the U.S. Treasury Department’s Home Affordable Foreclosure Alternatives program, which must be implemented by April 5, 2010. The program requires each distressed property to first be considered for a loan modification, and then evaluated for a short sale or deed in lieu before a foreclosure can be initiated.

In its January 2010 U.S. Foreclosure Market Report, RealtyTrac stated foreclosure filings, which include default notices, scheduled auctions and bank repossessions, were reported on 315,716 U.S. properties during the month. The report also showed that one in every 409 U.S. housing units received a foreclosure filing in January.

Real Estate Owned, or REO, activity nationwide increased 31percent from January 2009, but was down 5 percent from the previous month. Default notices rose 4percent from last year, but dropped 12percent from the previous month. Scheduled foreclosure auctions were up 15percent from last year and down 11 percent from last month.

Despite an year-over-year decrease of about 18 percent in foreclosure activity, Nevada’s foreclosure rate remained highest among the states for the 37th straight month. One in every 95 Nevada housing units received a foreclosure filing during the month, which is more than four times the national average.

Arizona’s foreclosure rate was the second highest among the states in January, owing to a 4 percent month-over-month increase in foreclosure activity. One in every 129 Arizona housing units received a foreclosure filing during the month, the seller of default data said.

In California and Florida, foreclosure activity decreased by double-digit percentages from the previous month, and the two states registered nearly identical foreclosure rates with one in every 187 housing units having received a foreclosure filing.

With one in every 231 housing units receiving a foreclosure filing, Utah registered the nation’s fifth highest state foreclosure rate, although foreclosure activity declined nearly 12% month-over-month.

Other states with foreclosure rates among the nation’s 10 highest were Idaho, Michigan, Illinois, Oregon and Georgia.

Further, RealtyTrac said California, Florida and Arizona posted the three highest state totals in terms of properties receiving foreclosure filings in January. These three states together accounted for more than 44 percent of the national total.

In California, total foreclosure filings were 71,817 and Florida reported 47,069 filings. In Arozona, 21,048 properties received foreclosure filings in January.

**IBR

Canyon County defaults rise 70 percent in January

Canyon County’s home defaults had dropped off in the last few months of 2009, but they came back with a vengeance in the first month of 2010.

The county’s foreclosures hit a high in January, rising from 214 filed in December to 365 filed in January for a total increase of 70.5 percent, according to IdahoDataProviders.com.

“What this all means is that you should brace yourself for a double dip in the housing market in 2010,” Charlie Nate, president of the foreclosure-tracking company, said in a release. “Look for local prices to still fall another 7% to 10% starting in the next few months. A bottom to the housing market and the beginning of a real recovery is unfortunately still at least one year away.”

Ada County’s number of foreclosures filed dropped 8 percent to 408 in January this year, a 19 percent increase from January 2009.

Short sales dropped 1.3 percent in the two counties in January, a lull which Nate calls the “calm before the storm.” He expects a new flood of short sales this year caused primarily by the U.S. Treasury Department’s Home Affordable Foreclosure Alternatives program, which must be implemented by April 5, 2010. The program requires each distressed property to first be considered for a loan modification, and then evaluated for a short sale or deed in lieu before a foreclosure can be initiated.

**IBR

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