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
