Wells Fargo CEO: Don’t blame banks for not lending

August 26, 2010 by Matthew Le Baron  
Filed under TrustIdaho.com Featured

Wells Fargo CEO John Stumpf says banks shouldn’t take the blame for not loaning money even though his bank’s total loan values have been tumbling.

He told a Boise audience Aug. 17 that the problem is a lack of demand.

“We can’t find qualified borrowers who want to borrow money,” he said during the Boise Metro Chamber of Commerce’s CEO Speaker Series luncheon.  “They don’t see the opportunity to invest in a profitable way.”

Wells Fargo’s profits jumped 20 percent to $3.1 billion during the second quarter compared to the prior period, even while total loans were down 7.5 percent compared to a year ago, $766 billion at the end of June compared to $822 billion at the same point last year.

Stumpf, CEO since 2007, said one strong indication that businesses are reluctant to borrow is that they’re leaving lines of credit unused at record low levels, currently 35 cents on the dollar.

He devoted his talk to a discussion about why record profits on Wall Street have yet to translate into a stronger economy that would lead to better prospects for Main Street.

“One seems to be doing very well,” he said. “One seems to be stuck in a ditch.”

The reasons he cited include:  devalued home prices that make everyone feel poorer; the lingering effects of too much debt taken on by consumers, businesses and governments; better technology that allows companies to get by with less; more outsourcing that prevents a bigger pickup in hiring; regulatory uncertainty that has businesses unwilling to invest; and further declines in American manufacturing that mean companies restocking on inventory are buying from abroad.

Wells Fargo is one of the area’s largest employers, with 2,278 full-time Idaho workers.

source:  IBR

Boise-area home prices decline in second quarter

August 23, 2010 by Matthew Le Baron  
Filed under Buyers

Now is either the best or worst time to buy or sell a home in the Treasure Valley, depending on whether you’re a buyer looking for a bargain or a seller who’s been forced to list your home well below its value.

“If you’re a homeowner wanting to sell, it’s not a good thing.  But if you want to purchase your first home, this is good news,” said Mark Lebowitz, executive director of the Ada County Association of Realtors.

According to the National Association of Realtors, home prices rose in 100 cities across the country during the second quarter of 2010. In the Boise-area, prices actually declined by 13 percent.

The Intermountain Multiple Listing Service reported the average selling price in July for a single-family home in Ada County was $195,595. In July 2009, the same house was $197,712. For the year-to-date in 2010, average price was $183,306, as opposed to the same timeframe in 2009, with a price of $201,362.

In Ada County specifically, many first-time homebuyers who took advantage of the $8,000 tax credit earlier this year were buying homes in the $120,000-$160,000 range.

“It’s what they could afford to buy,” Lebowitz said.

Other factors which have caused prices to decline locally include the fact that more homes in short sale or foreclosure are on the market, many with greatly reduced listing prices.

Low interest rates combined with an inventory of lower-priced homes on the market is a “win-win” for buyers.  Every price range was flourishing for all types of homes in 2005 and 2006 yet After that money was gone, upper-end price ranges were affected much more than entry-level homes.

Source:  IBR

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DISTRESSED SALE STATISTICS

August 10, 2010 by Matthew Le Baron  
Filed under TrustIdaho.com Featured

2010 Summary – Ada & Canyon County (Jan – July)

 

Distress

Typical

Total

 

Count

Percent

Count

Percent

South Nampa (86) – 1260

306

66.38%

155

33.62%

461

NW Meridian – 1030

269

47.70%

295

52.30%

564

SW Caldwell – 1280

253

66.58%

127

33.42%

380

NE Nampa (87) – 1250

227

67.36%

110

32.64%

337

SW Boise-Meridian – 0550

188

50.67%

183

49.33%

371

NW Nampa (51) – 1270

179

61.51%

112

38.49%

291

Eagle – 0900

156

50.65%

152

49.35%

308

W Boise-Garden City – 0650

147

35.77%

264

64.23%

411

Kuna – 1100

136

53.97%

116

46.03%

252

NE Meridian – 1020

132

38.15%

214

61.85%

346

Boise Bench – 0400

115

50.22%

114

49.78%

229

Middleton – 1285

102

62.58%

61

37.42%

163

NW Boise – 0800

90

36.89%

154

63.11%

244

NW Caldwell – 1275

86

59.72%

58

40.28%

144

SE Boise – 0300

83

27.85%

215

72.15%

298

West Boise – 0600

81

41.33%

115

58.67%

196

Star – 0950

73

54.07%

62

45.93%

135

North Boise – 0100

59

27.57%

155

72.43%

214

South Boise – 0500

52

46.85%

59

53.15%

111

SE Meridian – 1000

51

35.66%

92

64.34%

143

SW Meridian – 1010

37

74.00%

13

26.00%

50

Canyon County Other – 1290

25

65.79%

13

34.21%

38

Parma – 1292

16

57.14%

12

42.86%

28

NE Boise – 0200

15

17.86%

69

82.14%

84

Wilder – 1293

10

76.92%

3

23.08%

13

Melba – 1265

9

50.00%

9

50.00%

18

Garden City – 0700

9

37.50%

15

62.50%

24

Greenleaf – 1294

1

16.67%

5

83.33%

6

Grand Total

2907

49.62%

2952

50.38%

5859

 

19 Month Summary for Distress Sales

 

ADA COUNTY

Distress

Typical

Total

Count

Percent

Count

Percent

2009

Jan

51

19.17%

215

80.83%

266

Feb

116

38.16%

188

61.84%

304

Mar

182

42.62%

245

57.38%

427

Apr

205

42.98%

272

57.02%

477

May

177

36.27%

311

63.73%

488

Jun

208

32.81%

426

67.19%

634

Jul

197

32.72%

405

67.28%

602

Aug

209

35.48%

380

64.52%

589

Sep

220

34.32%

421

65.68%

641

Oct

212

30.95%

473

69.05%

685

Nov

204

32.54%

423

67.46%

627

Dec

197

46.68%

225

53.32%

422

2009 Total

2178

35.35%

3984

64.65%

6162

2010

Jan

162

53.47%

141

46.53%

303

Feb

181

47.26%

202

52.74%

383

Mar

310

48.74%

326

51.26%

636

Apr

256

34.59%

484

65.41%

740

May

281

38.44%

450

61.56%

731

Jun

289

39.59%

441

60.41%

730

Jul

207

46.31%

240

53.69%

447

2010 Total

1686

42.47%

2284

57.53%

3970

19 Month TOTAL

3864

38.14%

6268

61.86%

10132

CANYON COUNTY

Distress

Typical

Total

Count

Percent

Count

Percent

2009

Jan

28

24.14%

88

75.86%

116

Feb

58

53.21%

51

46.79%

109

Mar

105

61.05%

67

38.95%

172

Apr

137

68.50%

63

31.50%

200

May

141

62.67%

84

37.33%

225

Jun

168

59.57%

114

40.43%

282

Jul

158

57.04%

119

42.96%

277

Aug

138

58.97%

96

41.03%

234

Sep

159

62.11%

97

37.89%

256

Oct

180

59.02%

125

40.98%

305

Nov

192

59.63%

130

40.37%

322

Dec

132

58.93%

92

41.07%

224

2009 Total

1596

58.63%

1126

41.37%

2722

2010

Jan

120

75.47%

39

24.53%

159

Feb

142

69.61%

62

30.39%

204

Mar

204

70.83%

84

29.17%

288

Apr

180

52.17%

165

47.83%

345

May

187

57.54%

138

42.46%

325

Jun

218

65.47%

115

34.53%

333

Jul

172

71.97%

67

28.03%

239

2010 Total

1223

64.61%

670

35.39%

1893

19 Month TOTAL

2819

61.08%

1796

38.92%

4615

 

 Distress = Agent gave a “YES” reply to REO, Foreclosure, Possible Short-Sale in MLS.

 

The raw data obtained is accredited to Intermountain IMLS. The statistics , data analysis charts, graphs is done by Hennessey Appraisals.

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The winner for best overall town in the western U.S. is Boise, Idaho.

August 9, 2010 by Matthew Le Baron  
Filed under TrustIdaho.com Featured

POPULATION (METRO) 606,376
MEDIAN HOME PRICE $169,900
HOMETOWN HERO Kristin Armstrong,
2008 Olympic time-trial gold medalist,
bicycling advocate, supermom

THE LIVING: Boise, to put it mildly, has been on a roll.  Government, education, and health care remain core industries, but dozens of high-tech startups have moved to town, joining behemoths like Hewlett-Packard and Micron Technology.  And while its population has more than doubled in the past 30 years and jaded locals bemoan the sprawl, Boise has managed its growth impressively well:  The city is home to nearly 2,000 acres of parks and a 25-mile greenbelt.  The outlying areas feel a bit bland, but the older neighborhoods have that Boulder vibe—cruiser bikes, farmers’ markets, and prayer flags—only with reasonably priced homes.

THE PLAYGROUND: With a few play waves already in city limits, a $6.7 million white­water park in the works, and life-list runs on the Payette and Salmon within a two-hour drive, the paddling is exceptional and only getting better.  There’s also a healthy triathlon community and a robust road-biking scene.  In winter, before or after work, you can get a quick ski in—nordic or alpine—at Bogus Basin Ski Area, just 16 miles up the road. (Tip: The climb up is also a classic road ride.)  And those brown hills above town are laced with more than 135 miles of hiking and mountain-biking trails.  Yup, you’re going to need a bigger Rocket Box.

THE NEIGHBORHOOD: The Northend neighborhood is as good as Idaho gets:  You can walk to the local coffee shop, bike downtown via paths, plant some veggies at the community garden, or hop on singletrack at the end of your block.

source: outsideonline

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Boise Home Builders Face Tough Times

August 3, 2010 by Matthew Le Baron  
Filed under TrustIdaho.com Featured

Builders build homes to make a profit.

There’s no point whatsoever for a builder to take a chance on building a spec home and ending up subsidizing the sale at closing, or even worse, losing their spec home in foreclosure after investing tens of thousands of dollars and months of effort building the home.

Builders in the Boise real estate market face many challenges these days, including:

Competition From Resale Properties

How can a builder compete with a resale home seller with equity to negotiate who has been transferred, lost their job, or is getting a divorce?

Competition From Foreclosures/Short Sales

How can a builder compete with a lender who’s selling foreclosed properties at a substantial discount to the builder’s brand-new home?

Difficulty Obtaining Construction Financing

Construction lenders are skittish about making construction loans these days. The terms for those loans make it difficult, if not impossible, for a builder to qualify for construction financing in many (most?) instances.

Which is why we see very few builders building spec homes in the Boise area at this time.

During better times, we had numerous quality builders (like Flaherty, Tahoe, Marrs, Price, Mayer,  etc.) building dozens of homes each year in the Treasure Valley.

Now, we have just a few builders treading carefully and avoiding risk.

Many of our former respected builders have either gone out of business or moved to the sidelines awaiting better times.

source:  boiseblog

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Businesses take advantage of still-soft Valley market

July 22, 2010 by Matthew Le Baron  
Filed under Buyers

It may not be enough to reduce commercial vacancy rates, but some Treasure Valley businesses are moving to new spaces to take advantage of a more affordable market.

A Concordia University School of Law construction project at the southwest corner of Fifth and Front streets in downtown Boise may not have been feasible or even contemplated two years ago.

Concordia has been looking for a building of 40,000 to 50,000 square feet to buy or a building site.  Concordia ultimately looked at about 40 properties, many unlisted.  The university had in mind a budget that wouldn’t have allowed a project that size in downtown Boise.

Last spring, Concordia bought the former Front 5 building on the 0.74-acre downtown site. Immediately south of the 16,800-square-foot building is a parking lot on which Concordia is expanding the structure to about 50,000 square feet.

It took a little imagination to make this site work for the project, but there were two keys:  the excess land immediately south of the existing building presented an opportunity not readily apparent at first.  And the property’s value had dropped.

Two years ago, the multi-tenant Front 5 building was full.  Some tenants left as the economy weakened, which created an opportunity for an owner-occupant, he said.

Another recent owner-occupant is the Idaho Pizza Co. restaurant chain.  Idaho Pizza constructed and recently occupied a 3,000-square-foot building at 310 Sugar Ave. in north Nampa for its commissary – where it makes dough and sauces, and grates cheese, for daily delivery to the restaurants.

For more than two years, Idaho Pizza had been looking to lease a facility, but it wasn’t until this year they decided to buy property and build, CEO John McNicholl said.  The deal enabled the pizza company to own instead of rent, and to expand the operation.

McNicholl credits the dour economy for the buy-and-build scenario.  The Nampa site is central to the five-restaurant Treasure Valley wide chain.  Idaho Pizza took occupancy in late May.

Lorana Quintero, president of the franchise operation, said franchised owner-operators are keeping their eyes and ears open for opportunities in the southwest Idaho commercial real estate market.

Kristi Bowins, senior property manager with Colliers, said shopping center managers must stay creative in what has been a higher-vacancy, lower-rent market.

“It’s how creative you get that makes it work for both the tenant and the owner,” she said.

Vacancy can hurt the landlord but can benefit businesses that are growing, Bowins said.

Leapfox Learning’s recent move from Oakbrook to Shopko Plaza is an example of a business taking advantage to expand, she said.

Leapfox, which offers computer training, last March expanded in Oakbrook.  And again in June, the business took over an additional 5,000-square-foot space at Shopko Plaza in part because an ideal expansion space wasn’t available at Oakbrook.

Leapfox Education Director Debbie Nolan, said, the move was possible in part because Leapfox’s lease at Oakbrook was a month-to-month add-on to the lease of neighboring Quick Computer, a sister business.

“They worked me such a deal at Milwaukee (Shopko Plaza), at a fantastic, discounted rate that a small business owner could afford,” she said.

Leapfox now has two locations including part of the Quick Computer space in Meridian.

Commercial vacancy rates, rents

Office vacancy was 18 percent throughout the Treasure Valley at the end of 2009 and 18.2 percent in mid-2010.  Average full-service asking rent for office space in the Treasure Valley was $17.21 per square foot per year at the end of 2009 and $16.30 as of mid-2010. The average rent paid is $14.73 per foot as of mid-2010.

Retail vacancy in the Treasure Valley increased from 13.1 percent at the end of 2009 to 13.5 percent in mid-2010.  Average triple-net asking rents (tenant also pays taxes, insurance and maintenance costs) were $13.83 per square foot per year at mid-year, down from $14.47 a year earlier.

Treasure Valley industrial building vacancy dropped from 12 percent at the end of 2009 to 10.9 percent in mid-2010.  Monthly, triple-net, average asking rents were 52 cents per square foot at the end of 2009 and 49 cents at mid-2010.

Source: 2010 Colliers Idaho Mid-Year Real Estate Market Review & IBR

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Housing market remains troubled

July 22, 2010 by Matthew Le Baron  
Filed under TrustIdaho.com Featured

 Boise real estate agent says June home sales dropped again, due in part to the expiration of tax credits for first-time homebuyers.  Some call it the “tax credit hangover”. 

As part of the incentive program, buyers initially had to close their purchases by June 30.  Congress later extended the deadline through the end of September.

What’s also compounding the problem locally is an annual seasonal trend whereas a “slow down” occurs after may then a “pick up” again in Auguest. 

Other factors also contributing to lackluster sales include a high unemployment rate and tight lending restrictions for potential homebuyers.

“There’s nothing going to propel sales anytime soon. It’s all about jobs and income growth,” Sam Khater, senior economist at real estate data provider CoreLogic said.

According to a report in the Associated Press, June sales fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million, which the National Association of Realtors reported.

“The economy and the housing market are going to remain stagnant for some time,” Sam Khater, senior economist at real estate data provider CoreLogic said.

According to the Realtor’s Chief Economist Lawrence Yun, sales are likely to keep falling for three to four months. That could likely boost the supply of unsold homes to more than 10 months for the first time since the spring of 2009.

“It’s still a fragile situation in the housing market.”

source:  IBR

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Boise Real Estate: 101 ~ Terminology

July 15, 2010 by Matthew Le Baron  
Filed under Buyers

MLS Status Codes

  • “Available” obviously means the property remains unsold and is available (I told you it was “:101″!)
  • “Pending” means there is a pending sale (the property is “in escrow”, pending closing).
  • “Sold Contingent” means that there is an accepted offer that is contingent upon another event, such as selling another property, closing another property, getting the down payment from grandma, etc.)
  • “Closed” means that the property has been sold and escrow has closed.

Spec Home

A spec home is one that has been built by a builder who’s speculating that someone will buy it (very risky business these days).

In other words, the home was not pre-sold before starting construction.

Build Job/Build To Suit

A build job is a home sold prior to starting construction that is being built-to-suit for the buyer.

Prequalification Letter

Mortgage lenders issue pre-qualification letters to provide general assurances that a borrower will be able to obtain mortgage financing. It is not a firm loan commitment because the lender has not thoroughly investigated the borrower’s ability to obtain financing.

Loan Commitment

A loan commitment is issued by a mortgage lender after the lender has completed a thorough review of a borrower’s credit, employment, debt to income ratio, etc. Generally speaking, a loan commitment is more reliable and more thorough than a pre-qualification letter.

REO

The term “REO” means “real estate owned” and refers to foreclosed real estate that is owned by a mortgage lender.

Short Sale

The term “short sale” means that the net proceeds from the sale of a property are “short” (less) than the amount owed on the mortgage(s) for the property.  It definitely does NOT mean that the sale will be short or easy!

Title Search

The term “title search” refers to the process of searching the title of a property to determine ownership, legal issues, liens, etc.  In Idaho, this process is completed by the title/escrow company prior to closing and issuance of title insurance.

Source:  Boiseblog.com

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ADA COUNTY JULY STATISTICS:

July 12, 2010 by Matthew Le Baron  
Filed under TrustIdaho.com Featured

Below is a snapshot of June’s real estate activity for Ada County:

BOISE:

Available Homes
# Available: 3,753
# Vacant: 1,879
Vacant Percent: 50.1%
Average Asking Price: $236,184
Median Asking Price: $174,900

Pending Sales
# Pending: 644
Average Asking Price: $223,257
Median Asking Price: $175,000

Closed Sales – June 2009
# Closed: 595
Average Sales Price: $206,297
Median Sales Price: $175,950

Closed Sales – June 2010
# Closed: 698
% Change: +17.3%

Average Sales Price: $185,339
% Change: -10.2%

Median Sales Price: $159,700
% Change: -9.2%

MERIDIAN

Available Homes
# Available: 981
# Vacant: 556
Vacant Percent: 56.7%
Average Asking Price: $200,968
Median Asking Price: $173,350

Pending Sales
# Pending: 185
Average Asking Price: $197,950
Median Asking Price: $175,900

Closed Sales – June 2009
# Closed: 188
Average Sales Price: $192,808
Median Sales Price: $180,000

Closed Sales – June 2010
# Closed: 202
% Change: +7.5%

Average Sales Price: $184,575
% Change: -4.3%

Median Sales Price: $174,901
% Change: -2.8%

EAGLE

Available Homes
# Available: 334
# Vacant: 107
Vacant Percent: 32.0%
Average Asking Price: $463,854
Median Asking Price: $396,750

Pending Sales
# Pending: 66
Average Asking Price: $380,204
Median Asking Price: $354,950

Closed Sales – June 2009
# Closed: 46
Average Sales Price: $372,061
Median Sales Price: $325,000

Closed Sales – June 2010
# Closed: 44
% Change: -4.4%

Average Sales Price: $324,403
% Change: -12.8%

Median Sales Price: $324,950
% Change: None

Data taken from Intermountain MLS on 7/7/10 and pertains to single-family residences on lot or acreage. Data does not include condominiums or townhomes.

 Source:  boiseblog.com

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Meridian selected as “top 10″ family town in Nation

Meridian, Idaho was selected by Family Circle magazine as one of the 10 Best Towns for families.  The announcement was made today based upon the magazine’s annual efforts to identify communities that are the perfect place to call home.

“We are excited to have our community selected by Family Circle as one of the 10 Best Towns for families from cities and towns across the country.  We have a strong public school system, quality parks, a low crime rate, and much more. Meridian is a premier city to live, work and raise a family,” said Mayor Tammy de Weerd.  “This acknowledgment is a reflection of the role that all of our great community partners play in making Meridian a place to call home.”

The results will appear in the August 2010 Family Circle magazine available today, or online at www.familycircle.com. With a circulation of 3.8 million and 20 million readers, it is one of the most widely read monthly magazines in the world.

The City of Meridian is located at the center of the Treasure Valley in southwest Idaho, minutes from the State Capitol. Founded as a farming community in 1893 and incorporated as a city in 1903, Meridian is now one of Idaho’s largest and fastest growing communities. As the home to many young families, Meridian is a vibrant community whose mission is to be a premier city to live, work and raise a family. For more information about Meridian, visit www.meridiancity.org.

Source:  aarealtorsboise.com, Trust Realty

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