Invest in a Rental Home in 2010

According to a recent study, investing in a rental home is the way to go in 2010. The Federal Reserve Bank of New York economists predict a decline in the U.S. homeownership rate as Americans spend the next several years trying to rebuild their equity. The worst recession since the Great Depression, punctuated by a foreclosure epidemic, drove house values down by an estimated $5.9 trillion since they crested in March 2006. The New York Fed researchers expect home owners who are upside down on their mortgages because of this lost equity "very likely will convert officially to renters" in the absence of a price turnaround in the foreseeable future. The share of Americans owning their houses topped out at 69 percent in 2006 but has since retreated back to 67.3 percent, a level not seen since 2000, based on the New York Fed analysis.
Source: Washington Post (12/25/09)

Weekly Market Update 12/28/09

The number of homes (inventory) on the market rose a little in Canyon County and continued to decline in Ada County this week. Both Counties saw a decrease in pending home sales.

- Craig Panike, Broker

Conditions Optimal for Buyers

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.

NAR President Vicki Cox Golder said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”

Source: NAR

Weekly Market Update 12/21/09

The number of homes (inventory) on the market dropped a little in both Canyon and Ada Counties this week. Canyon County saw a slight increase in pending homes sales while Ada County pending home sales decreased for the 10th week in a row. I think we will see the market bump around at the current levels through the holidays.

- Craig Panike, Broker

November Stats for our Market!

Click here for complete statistical info for Canyon County

Click here for complete statistical info for Ada County

Tracking the U.S. housing market's rise, fall and rebound

Click on the link to see these five charts that show the housing industry's boom and bust this decade and forecast the possible course of its recovery the next three years, as reflected in home sales, home prices, housing starts, the supply of homes available for sale and mortgage defaults. All data is quarterly.

http://www.usatoday.com/money/economy/housing/2009-12-11-housing-market-charts_N.htm

Source: Moody's Economy.com & USAToday

Weekly Market Update 12/14/09

The number of pending home sales dropped again in both Canyon & Ada Counties this week. The number of homes on the market stayed about the same for the week. Though the market has been slowly improving for sellers, it is still a great time to buy! With the price of homes down and low interest rates, buying a home hasn’t been this affordable in years!
- Craig Panike, Broker

Treasure Valley Foreclosures Down 13% in November!

The number of home foreclosures filed in November in Ada and Canyon counties fell 13 percent from October’s totals, but remained high at 690. The 2009 low came in September with 595 foreclosures filed. The high came in July, when lenders began foreclosures on 819 homes.

Source: Idaho Business Review

Early Look at November Stats

Here’s a little peak into the stats for November. The number of homes sold in Canyon County in November was up 6% over October and up 150% over November 2008! The number of homes sold in Ada County was down 9% in November over October and up 96% over November 2008! Both Counties have already exceeded the total number of homes sold in 2008. The data is showing that October 2008 – March 2009 was the bottom for the number of homes sold. Sales have been slowly climbing since March.

- Craig Panike, Broker

Weekly Market Update 12/7/09

The number of pending home sales is dropping like a rock! Pending sales are down 36% in Canyon County and 41% in Ada County from when they peaked a few weeks ago. Some good news though is that the number of homes on the market dropped back down in both Canyon and Ada Counties this week. Our market is still very delicate.

- Craig Panike, Broker

Weekly Market Update 12/7/09

The number of pending home sales is dropping like a rock! Pending sales are down 36% in Canyon County and 41% in Ada County from when they peaked a few weeks ago. Some good news though is that the number of homes on the market dropped back down in both Canyon and Ada Counties this week. Our market is still very delicate.

- Craig Panike, Broker

Government Announces Short Sales Guidelines

The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly. To qualify under these new guidelines:

• The property must be the home owner’s principal residence.
• The home owner must be delinquent on the mortgage or close to defaulting.
• The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
• The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

*A short sale is when a home owner is selling their home for less that what is owed on it. Give us a call if you have any questions regarding a short sale! 208-463-1011.