May 11, 2010
Hi All, hope everything is going well with you and your family. Sun has finally made it into North Idaho and I am expecting a nice/hot summer. I jumped in Lake CDA this morning – NOTE – it’s still cold. This edition of my NIRE Analysis will focus on:
REAL ESTATE MARKET UPDATE – if you want the charts that I usually send, reply with the request and I will “load you up”
FORECLOSURE UPDATE
SHORT SALE UPDATE
COMMERCIAL MARKET
NORTH IDAHO MARKET UPDATE
Currently there are approx 2844 residential listings in Kootenai County. Current market conditions tell us this is 12.5 months of inventory. 288 units sold last month ($45 Milliion in Volume) up from 177 ($36 Million) one year ago at this time – UP 38% compared April 09’ (in units) –
We have sold 918 units (as reported from MLS) since 1/1/10. The average sold price is 200K. You can expect a house priced around 200K to be on the market 116 days (of course, if it’s priced competitive). If a house is priced above 500K you can expect it to be on the market for 220+ days (upper range HAS to be top 3 in quality and price compared with competition if it’s going to have a chance at selling). The average home will rent for between $900-1150/month.
It will be interesting to see next month’s stats and the effect the expiration of the tax credit has on sales. Further – this came to me from one of my family members regarding the national market…
I went to a real estate conference yesterday. One of the guest speakers was from the Federal Reserve. While I am a little pessimistic about the current market and where it’s going, I was pretty stunned at what this guy had to say (these are his opinions and not that of the Fed). I thought I’d share some of his info:
1. 24% of all homes in the US have negative equity (70% in Vegas)
2. 23% of loans that have been delinquent 12 months - yes, 12 months - have not started foreclosure yet
3. 14.6% of mortgages are NOT current
4. 50% of loan modifications are in re-default after 9 months
5. Hotels have lost 50% of their value in last 24 months - particularly luxury hotels
6. Starting to see consistency in multi-family; however, watch the condo and timeshare market where you buy (eg. timeshares in Orlando can now be rented for $50 per WEEK).
7. Commercial Loans - can’t re-fi overleveraged properties
8. Regional Banks and Community banks own 26% and 47% of their portfolios in commercial loans - banks will continue to be hammered
9. Recovery is 2-4 years away
FORECLOSURE
REO agents are busy this year, and will continue to be for the next 2 years. REO property has accounted for 25% of our sales this year. The average sale price was $153,247 – the price it was listed at when it sells - $160,620. The original list price $171,183. What this tells you – when a bank lists their property and it doesn’t sell in 30 days they drop it 10K until it sells. As a buyer you can expect a 5% discount on the final list price (average bank takes 95.15% of list price). 232 foreclosure properties sold since 1/1/10, for an average of 62 days on the market.
186 Foreclosures on the market now – including pending. See the list below:
http://www.flexmls.com/link.html?rho8i61ynug,7,1
SHORT SALES
289 short sales are on the market now, 83 (28%) sold since 1/1/10. Banks are still taking 3+ months to respond, but I have noticed they are responding. Typically they are within 85-90% of market price, however there have been a few occasions where it is less. Here is the link to the short sales:
http://www.flexmls.com/link.html?rho8jkr6ngh,7,1
COMMERCIAL MARKET
333 total commercial listings on the market now. 15 (4.5%) have sold this year (see the list of what has sold here). It’s not looking to good in the commercial realm; however, there are nice commercial development bargains if you’re looking. Contact me for a list if you’re interested.
View commercial listings at:
http://www.NorthIdahoCommercial.com
View commercial business opportunities here:
http://www.flexmls.com/link.html?rho8ng58n0t,7,1
Thank you for taking the time to review our market conditions and/or look over our listings. If you have further questions or comments or would like to LIST or WRITE OFFERS, please let me know. As always, if you or your family/friends/clients need help with anything real estate in North Idaho, please do not hesitate to get in touch. I am always available and my website is always updated with the latest listings.
Have a great rest of the week, TJB (208)660-5785
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April 26, 2010
March 1, 2010
HI All, hope all is well! Enclosed is my latest North Idaho real estate market overview for month ending February. I’ve done the research, here are 5 topics that I will address this time including attached charts, trend lines and more: 1. Latest Market Data (Inventory, Sold, DOM, Sold Prices) 2. REO and Short Sale Updates and Links 3. Waterfront Listings 4. Vacant Land Overview 5. Commercial Market
There is a lot of information and links enclosed in this email so be sure to save it for future reference.
1. Our market has been doing fairly well in units sold. Feb 09 to Feb 10 we increased almost 30% in sales! Over 2803 total units sold in the last year, 200 in February. Average sold price is hovering around the 200K mark. If you’re curious what 200K will get you, see this link (there are over 160 options, but see 20 here): http://www.flexmls.com/link.html?rflt59f26en,7,1 Interest rates are still very low (5%ish), and the first time homebuyer tax credit is available until June 30th (must have offer accepted by April 30).
The average Days on Market for a listing is 138 days. We have almost 32 months of inventory. We typically have the lowest inventory available in Jan/Feb then start increasing into the summer months, it is still the same, right now we have 6500+ listings, we will be over 7,000+ in no time. The hot price category is below 175K. As always, you can view all housing inventory via map/subdivision/location at my website http://www.LIVECDA.com
2. There are currently 160 bank owned properties on the MLS now, 30 of which are pending (under contract/ 18%). I hear the banks are holding even more but do not want to saturate the market with releasing all. 19% of all SOLD units in the last year were REO properties - 537 SOLD REO in the last year (2803 Total units sold in the Coeur d’Alene Region). Of the 537 sold REO’s, the average was LIST PRICE 181K / SOLD PRICE 170K. Across the board, banks moved off their list price by almost 5%, regular listings, sellers moved 8%.
Link to REO Listings (160) http://www.flexmls.com/link.html?rflt0gristf,7,1
Link to Short Sales (283) http://www.flexmls.com/link.html?rflt0ko129e,7,1 Short sales are still taking considerable time to get bank approval. There have been some new guidelines that may make banks respond sooner, stay tuned for that.
3. 86 North Idaho waterfront listings sold in the last year. This is across the board, CDA Lake, Hayden Lake, Spokane River, Twin/Spirit and more. Currently, over 120 available. See the list of Waterfront listings here - http://www.flexmls.com/link.html?rflt5krayjc,7,1
4. Despite a rough year in vacant lot/land sales, things are looking up. Many lots available (2700+). 42 sold since Jan 1, 2010, 400 in the last year. Much inventory to choose from, prices are getting reasonable. 5 acre lots for around 50K in the surrounding area. I just listed 3 5+ acre CDA Lakeview lots above Carlin Bay for 75K each. You can view all vacant land inventories here
http://www.LandCDA.com
5. Commercial Market – Lots of information out there about the “dire straights” of the commercial market and the tough time securing financing. In a nutshell, cash availability to businesses that need it to expand, pay bills, hire employees has dried up and it is tough to refinance and establish new credit lines for businesses. The SBA has a program going, but the process is “hairy”. Contact your favorite commercial lender for more information on the lending environment; I am sure they would love to talk to you about it. I hear there could be a potential $500+ Billion in commercial foreclosures/defaults. Locally, we have 282 commercial listings available now in our market (see the listings here http://www.northidahocommercial.com ). 3 of which, are marked as pending. 58 total commercial sales reported to the MLS since 3/1/2009. If you’re curious, you can view a list of commercial business opportunities available here (http://www.flexmls.com/link.html?rfltcghupga,7,1)
If you have specific questions, or if you would like specific niche real estate market info including commercial, please let me know. I have a broad base of listings in each of these categories. If you’re looking for something, I probably have it or have access to it. As always, I am available to assist you, your friends, your co-workers and your family in everything real estate, anytime. Just let me know how I can help. Have a great rest of the week. TJB
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November 2, 2009
Hi All,
Hope all is well with you and your family. It has been getting pretty cold at nights around Coeur d’Alene, snow is expected soon definitely before Thanksgiving. In this newsletter, I would like to talk about 4 points: 1. North Idaho Real Estate Market Conditions, 2. Commercial Property Sales 3. $8,000 Tax Credit Extension 4. REO and Short Sales
North Idaho Real Estate Market Conditions
Through October 09’ we are sitting with 8373 listings on the market, a 26 month supply at current selling levels. Last month we sold 317 UNITS (consider that is 634 sides to a transaction – we have around 850 real estate agents in our market area). This is actually an 8% increase in sold unit’s year over year. In the coming months we can expect inventory to drop significantly through January – however- I suspect we will see an increase in REO and short sale listings keeping prices low. Our average sold price now is $200,665 and it is 151 days on the market. The $100,000-$200,000 price range is still the hot price points with up to 29% pending ratios in those price categories. In the upper price ranges – $400,000-$2,000,000 there are 8 pendings and a total of 303 listings. I consider this price point Armageddon for residential units priced above 400K (the average price adjustment is $56K!). Please see the attached PDF files, which include: two year trend lines, Total Market Overview, for more information.
2 Year Real Estate Trendline
Commercial Property Sales
There have been a total of 57 commercial units sold (reported through MLS) in the last year. The average price per SQ/FT for commercial sold is $93/FOOT. Average price adjustment before it sell is 29%. Average sold is $447,496. Of course, many factors come into play (i.e. location) when looking at comparable pricing. Commercial money is still hard to come by and with the restructuring and bankruptcy of CIT it may get even tighter. Watch for commercial REO’s. Community banks appear to be holding most of the commercial REO inventory so you might check with your local banks for their commercial REO list. You can see all commercial inventory here: http://www.NorthIdahoCommercial.com Please see the attached spreadsheet outlining the sold commercial data.
Idaho Commercial Sales Sold Anaylsis
$8,000 Tax Credit Extension
Late last week a bipartisan plan emerged in the Senate that would continue the $8,000 credit for first time purchasers beyond November 30, but would create a new, smaller credit of $6,500 for people who’ve owned and lived in their houses for five consecutive years and now want to buy another as their principal residence. It looks like this is going to go through. It is nice to see they are giving other buyers – like those that have owned their home for 5+ years an incentive to sell and repurchase. When this passes and you would like to list your home for sale and take advantage of this offer – LET ME KNOW!
file:///C:/Documents%20and%20Settings/TJ/Local%20Settings/Temporary%20Internet%20Files/OLK128/20091102_washingtonreport.htm
REO AND SHORT SALES
Right now there are 112 Real Estate Owned (REO) listings on the market. Over 250 sold in the last year. 26 sold last month representing about 8.2% of the closed inventory. You can view the current REO inventory here:
http://www.flexmls.com/link.html?ox111l25fe7,7,1
There are over 260 short sales on the market. Certain banks seem to be better than others in negotiating the short sales. My last short sale – we had approval in 1.5 months; my short sale before that 7 months! Big differences. To view the first 200 short sales on the market now see:
http://www.flexmls.com/link.html?ox111w0qmr5,7,1
Thank you for taking the interest in our real estate market. If you would like specific information please do not hesitate to get in contact with me via email, phone or fax. Have a great Thanksgiving!
Your Local Realtor of Choice,
TJB
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August 4, 2009
I hope all is well with you this summer! It has been getting hot, a great time to grab friends and family and get on the LAKE! Go take advantage and enjoy what a great place North Idaho is in the summer. This monthly update I want to share information about: 1. Current Inventory, Sold’s, Month Supply 2. Total Market Overviews 3. Vacant Land 4. Foreclosures/Short Sales 5. Keller Williams LUAU Coming Up
1. Looking over July results, it appears fairly optimistic in line with the national housing results that were announced just recently. We sold 308 units in July 09’ (compared with 323, 08’). This is up over the 299 sold in June. The sales also follow the North Idaho trend of summer month sales more than double winter sales (Jan 09’ 120 units sold). If you look at the enclosed trend line stats, you will see what I am talking about. From here on out we can expect inventory to drop a little bit every month then start gaining momentum again in February. Currently, we are at 8,676 listings. If you are a seller, get your property listed to within the top 3 properties in your class (price,quality) if you want it to sell before winter. If you’re a buyer, this market is producing some incredible opportunity for primary residences in all price ranges. The $8,500 tax credit is still in effect until end of Nov. Also, on a side note, legislation just got passed, by Aug 15th loan servicers will begin to modify ANY FHA loans if the mortgagee applies and fits the profile (31% Front End Ratio, 55% Back End Debt) according to the Affordable Modification Program Letter 2009-23. Let me know if you would like more info.
2. Enclosed are the Total Market Overviews (TMO’s) for all of Kootenai County for CONDOS, MULTIFAMILY, and SINGLE FAM. Very interesting to look at, not much activity going on in the duplex/triplex fourplex realm, which may produce some opportunity in the coming year as inventory swells. As banks tighten lending even more, this may force more people to rent. I like the idea of big units 4+ bedrooms ect… Midrange condominiums 300-400K appears to be seeing some action. See the attached TMO’s. Kootenai County Total Market Overview
3. Vacant land inventory on our MLS is up over 3700 parcels available!!!! We sold 407 parcels in the last year. Here are 100 parcels over 80 acres. http://www.flexmls.com/link.html?ou3e0pn4ljn,7,1 You can view all of our land and search specifically for your needs at my http://www.LandCDA.com website.
4. Sellers are starting to price their properties similar to REO pricing. They have to in order to compete. Here is the current foreclosure list; 89 units available now. http://www.flexmls.com/link.html?ou3e0×99732,7,1 If you have interest, 208 REO’s sold in the last year for an average of $93/FOOT. Within 95% of list price. Average Days on Market is only 85 days for an REO, this includes escrow time AVG 45 days….See below for REO sold stats for first 200:
5. Keller Williams Luau – This is coming up Friday August 21, 2009 5-8pm and YOU are invited. 1044 NW BLVD. Food, music and a jumping tent for the adventurous. I hope to see you there!
Have a great remainder of August! As always, if you or anyone you know is looking to buy, sell, invest, lease, property in North Idaho please have them get in touch with me. I would love to work with them. I am always available. CELL 208-660-5785.
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June 29, 2009
News out concerning the national sales data compiled for May. 1 in 3 homes sold was a foreclosure or property in a distressed sale. This is keeping sales prices down, but number of sales up. Locally, in North Idaho - Kootenai County specifically, we had 241 residential home sales in May. 25 of these were REO (Real Estate Owned) properties, 5 were short sales. 12% of our sales being distressed. This tells me that sellers of property are pricing their homes aggressively to compete with the distressed sales. Further, this is also telling me that banks are not just “dumping” properties but holding out for higher prices, getting into the real estate game. There are currently 84 REO properties on the market now. Let me know if you want a foreclosure list. Here is the rest of the article:
Home sellers are still competing against a growing number of bargain-priced foreclosures, buyers are paying higher mortgage rates and new rules for property appraisers are delaying or scuttling many deals.
The National Association of Realtors said Tuesday that home sales rose to a seasonally adjusted annual pace of 4.77 million, up from a downwardly revised rate of 4.66 million in April.
About one in three homes sold last month was a foreclosure or distressed sale, dragging down the median price to $173,000 — 16.8 percent below a year ago.
Nevertheless, there are other signs the market is turning around. The number of unsold homes fell 3.5 percent in May. That means there’s a 9.6 month supply at the current sales pace, compared with 6 months or fewer in a normal market.
Chris Heller, agent-owner of Keller Williams Realty in northern San Diego, estimated that in recent weeks problems with the appraisal process have caused about a third of his transactions to fall apart.
AP Real Estate Writers J.W. Elphinstone and Alex Veiga contributed to this report.
Copyright © 2009 The Associated Press. All rights reserved.
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June 15, 2009
May 20, 2009
May 12, 2009
Today, Bloomberg came out with a report summarized with this “Home prices in the U.S. dropped the most on record in the first quarter from a year earlier, led by California and Florida, as banks sold foreclosed properties.” I think this can be avoided at this drastic of a level. Banks are not doing all they can do to stop the foreclosure from happening. An agent in my office today was telling me a story about a property that was being negotiated via short sale. His client put in an offer of 153,000 to take to the bank. Months passed, bank chose not to respond and the property ended up REO. The same client was able to put in an offer on the property in the REO state, and got it accepted for 135K. Kudos to the buyer for getting what they wanted for better than they wanted.
What is it going to take, besides taxpayer money, to get these banks to understand that they benefit by streamlining and putting resources into the short sale process. It will help solidify prices in the market, move inventory, help their troubled clients, and avoid the dreaded foreclosure. See the links to two stories about foreclosures and short sales out today:
Home Prices in U.S. Drop Most on Record in Quarter
Short Sales: Banks Blocking Way Out Of Foreclosure Crisis
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