Archive for the ‘foreclosures’ Category

2012 Wilderness Ranch Idaho Annual Real Estate Sales Report

February 4, 2013

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Our Annual Review of Real Estate sales in Wilderness Ranch for 2012 and your 2013 forecast.

By: Paul Heim & The New View Team

Wow what a year!  While I had forecasted in last year’s report that we had passed the bell curve and would see an increase in market values for 2012, the market surpassed what anyone had expected or predicted.  We saw an unprecedented turn around in the Treasure Valley real estate market.  Overall values increased anywhere from 10% to 15%. These gains were primarily in homes under $350,000 but higher priced homes benefited also.

What were the causes and effects?  What we witnessed was a market correction.  It showed that homes had become undervalued.  I like to use the Circuit City analogy.  ‘Best Buy won the war’, … however I would bet Circuit City had way more customers the last four months they were open during  their  ‘Going Out of Business Sale’.  Best Buy had no way to compete with their prices those last months, but after their biggest competitor was finally gone, they knew they would see a spike in their growth and profit.

Likewise, as the banks ‘Going Out of Business Sales’ (foreclosed homes) were nearing a completion, the average seller was not able to compete with these prices.  We then entered a period of contraction.  This simply means we had more buyers than available listed properties.  Supply and demand rules ensued.

With the low inventory of listings on the market, we often dealt with multiple bids in the Valley when homes were priced competitively.  But how did Boise County and Wilderness Ranch fair in comparison? 

In 2012 East Boise County finally crossed an important barrier.  For 18 months we had no sales over $230,000 and that was causing difficulty in appraisals.  Not that the value wasn’t there in higher priced homes, just that appraisers couldn’t validate them for the lenders and the lenders need the appraisals to issue the loans.   The New View Team was able to complete two high-end sales (Boise County, but not in WR) very early spring, (cash deals) that helped remove that barrier and set precedence for every other sale and refinance that occurred moving forward in 2012.

Boise County tends to lag behind the Boise Valley (Ada County) by six to twelve months typically.   The Boise Valley saw a noticeable turn in the market starting the fourth quarter of 2011 so we anticipated it to carry over to Boise County by spring, but as summer set in it happened better than anyone had expected.  No complaints here!

Here are some graphs to illustrate key trends in the Boise Valley and East Boise County Real Estate Markets

Idaho Mountain Real Estate Stats

Homes in Idaho

How home sales compared in Boise County Idaho and Wilderness Ranch 2003 through 2012

2013 Forecast:

Boise is still seeing a contraction as developers try to re-group and get approval on new parcels through the hoops of planning and zoning for building.

I expect to see more homeowners (who were previously tight on the current value vs. what they owe) attempt to list in 2013, now that values have increased.  Nationally, home prices are predicted to increase 1% to 3%, but I predict Treasure Valley real estate increases to be somewhere between 3% to 5% conservatively.

In part, this projected increase will be due to a rebound in land values, which affects ‘over all’ home values.

Boise County, I believe, will see the START of a land recovery in Spring of 2013.  Whether it will do as good as housing did in 2012 is yet to be seen.  If you are looking to invest, then NOW may be a good opportunity to consider land, prior to a potential rebound.

I would suspect we will see more building and new construction homes taking place in Boise County in 2013.

There are some other exciting things happening in Boise County potentially for 2013 and we will keep you updated with them as the year progresses.  Some highlights are:

–          The opening of the Hot Springs in Idaho City which will help this end of the county economically.

–          Dr Matt Nelson’s new Family Practice office, which will be located directly across from the old Rock’s Lodge.

If you have any real estate related questions, please feel free to call or email us anytime, or visit our website!  We would love to hear from you.

Paul Heim & the New View Team

(208) 344-5700 – office

(208) 794-8175 – Paul Mobile

http://www.NewViewRE.com

National Real Estate trends that may be indicators of things coming.

May 24, 2012

It’s always interesting to watch regional trends as they can be indications of what will happen here in Idaho.  A colleague of mine in South Florida, Jeff Lichtenstein reports good news from the sunshine state.  Florida was the epicenter of speculation.  There still is a 3 year backlog of foreclosures and plenty of short sells still to go but the worst is past.  Jeff also can tell you a lot of the red tape of short sales since he experiences them first hand in Florida. Check out his blog to read all about it!

To learn more about what the area Jeff covers has to offer in amenities check out the Palm Beach Post

Jeff  specializes in luxury real estate in Abacoa  and  Jupiter real estate in South Florida.  His website is at www.JeffRealty.com

Wilderness Ranch 2011 Annual Real Estate Report

February 1, 2012

Annual review of real estate sales in Wilderness Ranch for 2011 and forecast for 2012.

The city of Boise and the Treasure Valley area was a mixed bag.  We actually saw a price increase of about 3% in homes under $150,000 mostly due to low interest rates, affordability and bank owned opportunities.  Many were multiple bid situations.  East Boise County always seems to lag the Valley in the curve.

So how did Wilderness Ranch fair for 2011 in the real estate market.  Sales and values were below average but considering the market and economic climate there were some pros and cons.

For starters in 2011 there were no sales in all of East Boise County over $230,000 which was extremely uncommon. I expect that trend to break this spring.

We had a total of 14 sales in Wilderness Ranch and two in Hidden Bowl, our close neighbors.  Of which I was party to 11 of the transactions in Wilderness Ranch, four of which were land sales.   I also moved two homes in Hidden Bowl off Daggett Creek.  Land sales were dismal as most people were taking advantage of  the competitive pre-owned homes market.

There were a total of 22 Home listings in WR for 2011 with 10 home sales; that makes a 45% absorption rate from list to sale which is phenomenal when compared to the rest of E. Boise County.  Our number of home listings were pretty average and much lower than the last three years as we have sold a lot of the excess inventory that was held over from the 2008 and 2009 market.

East Boise County in all had 134 Home listings (not including WR) and 43 Home sales; which was basically a 32% absorption rate.  So WR has consecutively outsold the County in general year over year. Proving that WR is a good place to buy with.

I currently have four homes pending sale in WR, two are short sale and two are non distressed.

Now for the nitty-gritty of it;  Of those WR sales there were seven that were distressed property; i.e. bank owned and/or short sale.  However I expect to see less distressed property in 2012 which I will cover in our forecast.

To summarize;

  • 22 Homes listed in all
  • 10 home sales
  • 4 land sales
  • 45% Absorption rate on homes sales (odds of your home selling) which was above the 2010 average.
  • Average Days on market was 85,
  • Average list price was $152,
  • Average sold price was $137,74
  • Average price per sq foot was $71.71
  • Highest price per square foot was $100 per sq foot
  • Lowest sales price per square foot was $41 per sq ft.
  • There are 2 non distressed pending sales
  • There are 2 short sale pending sales

The overall average was skewed by a few smaller lower quality and bank owned properties, but I would determine the average value of a well cared for home in WR at around $85 to $103 per sq foot depending on quality of finish, views, acreage and other amenities.

So how did we compare to the rest of  East Boise County?  There were 59 home and land Sales in total (not including WR), of which we had;

  • 134 Homes listed in all (not including WR)
  • 43  Home Sales
  • 16 land sales
  • 32% absorption rate for home sales
  • 98 Average days on market
  • $111,457 Average list price
  • $103,802 Average sold price
  • $57.64 Average price per sq ft

2012 REAL ESTATE FORECAST;

The Federal Reserve has alluded that it will maintain its current interest rates through 2012.  Which I had anticipated since they want everyone focused on the elections.

As we all know we’re not out of the woods yet; but barring any unforeseen economic crises (holds breath) I do believe we are past the bell curve on the foreclosure market. We will yet see many more homes complete the foreclosure process and banks still have a back flow to list.  However as the year progresses we should start to see a gradual decline.  I suspect another 18 months before this market really becomes a part of our past.

I don’t foresee too much activity in land sales for 2012, though it more than likely will be an improvement over the last two years.

My anticipation is we will see a few more home listings this year than last year and as long as pricing is right and interest rates stay low, my goal is to increase our absorption rates by at least 10%.  If you have not had a chance please visit http://www.wildernessranchhomes.com and if your on Facebook send us a like and feel free to post a comment or a picture.

I look forward to assisting each one of you.  please feel free to call or write if you have a question.  Always glad to help.  You may email me at buyboise@gmail.com or phone me at 208 794-8175 Mobile or 208 344-5700 Office

Sincerely,

Paul Heim

New View team

http://www.paulsidahohomes.com

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Latest Housing trends for Real Estate in Idaho

March 17, 2011

Rents in the Treasure Valley area are steadily increasing upwards this year and are predicted to continue their climb as the shortage of available units becomes apparent.   What does that mean for you?  Now is a great time to buy.

Interest rates are still low and there are a lot of Boise area homes available to choose from in varied price ranges. Read the latest real estate news trends and forecasts for the Boise Idaho area and national news.   As always, please call or write if you have any questions.

Jingle Mail? What is it and is it your best bet?

December 10, 2010

Over these last few years of our housing collapse, while working as an Idaho real estate agent in this current economy, I have been approached by a number of people whom desire my opinion.  They have a mortgage, good employment but fret over how upside down they are on their homes value.  Are you upside down or underwater on your home or property?

There has been a new wave of people simply dropping the keys in the mail and walking away from their homes and defaulting, although capable of fulfilling their obligations.   Hence the coin ‘jingle mail’.  I am not addressing those that are in a distressed situation where payment is impossible and whom may try to short sale but those that would not qualify for a short sale because of sound income, savings and employment.

Now there are the moral obligations to consider, but along with it seems to come a million excuses to get around them.  But lets look forward time-wise and calculate the costs.  These are some of the things I have seen and heard occur to people.

  • When you default you will destroy your credit, and I am not talking about a 1 year set back on your credit score, but perhaps seven to ten years before you can get another mortgage.
  • You may find that some of your existing creditors such as your credit card provider may send you a nice ‘Dear John’ letter cutting your credit or cancelling it all together.  Now I am not a big proponent of credit, but it would be pretty inconvenient today to try to rent a car, reserve a hotel room and a myriad of other things without one.
  • So you moved on, your renting a new place for cheap, or maybe you bought that second home first prior to defaulting.  Maybe it was a great bargain, got it on auction or it was a foreclosure sale, like the one someone will get when they buy yours.  Life sounds peachy now, maybe it goes something like this; ‘were putting extra money away, even taking an extra vacation.  I can expect my values to increase and get a realistic return profit someday,  Wow I am making money as I sleep’.  Sounds good in theory but while your sleeping soundly with your head on that pillow, dreaming about how you beat the system, there is someone somewhere going over files determining whom and in what order they intend to pursue for judgement.  Maybe it will be the bank, worse yet probably one of them cut throat folks that buy defaulted loans and hence the rights to sue you for a judgement.  I think the owner of every one of them has someone named Vinny on the payroll.   When you receive that letter the party is over.   I have seen judgement’s come against people, seen huge payroll garnishments, excessive legal fees, etc….  So now what?  Probably decide that bankruptcy is a good choice.  While it does exist to assist people to start over it also comes with its own draw backs and expenditures.

All said and done, keep in mind that the financial gain you seem to make at the start is short sighted, it can and will probably costs you more over the next ten years of your life both financially and emotionally.  Does it seem fair?  I would have to say yes and no.  We all make decisions everyday, hopefully for the better but it doesn’t always turn out how we hoped.  But that doesn’t excuse us of the responsibility of those decisions.  Lord knows I made a few over the years that were maybe good ideas but bad timing, or just a bad idea all together.  Life happens, we move forward.  If your loosing sleep on how much value you lost in your home then you need to refocus.  Keep your savings plan, retirement plan,  if possible make an extra payment per year or two.  If you pay a little extra per month that in the end of the year equals to or greater than your monthly payment, you would be shocked at how many years that will knock off your mortgage.  For example, a thousand dollars off your principle now, over 30 years can save you over three thousand dollars.  When you closed on your home, remember that spreadsheet they showed you for amortization? Its what I call, ‘the truth and scary’ report.  The one that shows you what you will end up paying at the end of the term for your home after interest.  You can beat that system by paying principle early.  If you do this over the next five years not only will you have reduced your mortgage considerably, but eventually we hope the market will catch back up and you can meet it in the middle.  Either way, I think over ten years (the time it will take to re-establish your name and credit) you will come out far stronger and better situated then taking the quick gain. I wish all of you success in your worthy endeavors.

Idaho Real Estate Updates

October 7, 2010


SEPTEMBER – 2010 Newsletter Housing Trends eNewsletter


Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

Please click here to view the SEPTEMBER – 2010 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

‘How to Buy foreclosures’ and ‘When to reduce your Price’

May 25, 2010

Couple doing paperwork with their REALTOR on a foreclosure

5 Tips for Buying a Foreclosure

Get prequalified for a loan and set aside funds, and you’ll be ready to purchase a foreclosed home. Read

Home for sale with lowered asking price

6 Reasons to Reduce Your Home Price

While you’d like to get the best price for your home, consider our six reasons to reduce your home price. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Idaho Real Estate and Home sales.