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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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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September 25, 2009
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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July 28, 2009
March 26, 2009
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