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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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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January 15, 2010
The Post Falls commercial real estate market is staying strong!
While commercial real estate activity has slowed in many parts of the U.S., the city of Post Falls has a substantial amount of activity either planned or in the works.
Meantime, vacancy rates in all commercial sectors in the city are low and appear to be holding steady.
Wal-Mart Stores Inc., is well under way on construction of a $10.3 million, 150,000-square-foot super center just east of the Cabela’s outlet on the Idaho side of the Washington-Idaho state line. That store is scheduled to open by mid-2010. The store will be the second Wal-Mart in the town of 25,000 people.
Near the planned Wal-Mart, Lowe’s Companies Inc., the large, national home-improvement store chain, has obtained land and a building permit from the city of Post Falls. The company plans to break ground on a new store later this year, reportedly around the same time the Wal-Mart opens. The proposed Lowe’s will be the first big-box chain’s first store in Post Falls.
As national chains continue to expand into North Idaho, vacancy rates for rental space are holding steady despite the national economic downturn, and landlords are fetching higher rental rates.
The Spokane-Kootenai Real Estate Research Committee published “The Real Estate Report” in December with vacancy-rate surveys for office, industrial and retail space in communities throughout the Inland Northwest.
The surveys, conducted by Spokane commercial appraisal firm Auble, Jolicoeur & Gentry, showed that Post Falls had the tightest office and industrial markets in North Idaho and a healthy retail market.
The office sector had a vacancy rate of just under 3 percent, essentially the same as it was in the year-earlier survey. The annual rental rate on recently signed leases stood at $15.24 per square foot, a dollar more than the average annual rental rate on all leases. Consequently, landlords are garnering more money for office space than they had in the past.
In the industrial market, Post Falls has a larger amount of square footage than any other community in North Idaho and the smallest vacancy rate. The survey reported that only 1.75 percent of the nearly 2 million square feet of industrial space was vacant. The average annual rental rate on recently signed leases was $7.44 per square foot, more than a dollar higher than average annual rental rate for all industrial space.
In the retail sector, the vacancy rate was higher than it was in the office and industrial sectors, but the rental rates were rising quickly. Post Falls’ retail market had a vacancy rate of just above 12 percent, roughly the same as it has been the past two years. The average annual recent rate is $13 per square foot, more than $1.50 more than the overall annual rental rate.
While competition for space remains strong, land along heavily traveled traffic corridors remains available for development. T.J. Barnhart, of Keller Williams Realty Coeur d’Alene, is marketing a 30-acre parcel along state Highway 41, less than a half-mile north of a major retail center that includes the town’s original Wal-Mart. The land is zoned so that it can be used for a variety of uses—office, industrial, retail or multifamily.
“It’s a unique opportunity in the current economy,” Barnhart said.
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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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March 26, 2009
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