December 2008

There are 16 blog entries for December 2008.

When it comes to buying foreclosures in the Boise Idaho area, there's really three main stages or opportunities to do so: pre-foreclosures, foreclosure auctions, or bank foreclosures (bank-owned).

idaho-foreclosure-timeline

1) Idaho Pre-Foreclosures. A home that's for sale before it actually goes to the foreclosure auction is known as a pre-foreclosure.  Most short sales are pre-foreclosures- they have usually missed payments and are trying to get it sold before the auction to mitigate the damage done to their credit.  Please understand, a home is a short sale when it is being offered for sale for less than what is owed and asking the lender to take the loss.  It's called a "short sale" because the sale price does not cover the loan amount, not because it's being purchased

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The Boise Idaho real estate market had 30% less sales in November compared to a year ago (Boise MLS).  In November 2008, there were 152 home sales compared to 216 in November 2007.  Last month, there were 240 home sales.

The average sold price for Boise Idaho was $245,068, off just 3% compared to a year ago.  The median home price was $189,250.

Here are the Boise Idaho real estate stats for November 2008:

Boise Idaho Real Estate Nov-08 Nov-07 % Change
Total Boise Idaho Homes Sold 152 216 -29.63%
       
Boise Average List Price  $   256,040  $   266,655 -3.98%
Boise Average Sold Price  $   245,068  $   255,006 -3.90%
       
Boise Median
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Please let me first clarify by saying that I specialize helping buyer's with short sale and bank-owned real estate.  However, I've found that if we can locate you the right bank-owned home, it's generally the best route to pursue.  Here's five reasons why:

1. You can buy it at the advertised price (unless bid up). Many people don't realize the asking price on short sales has not been approved by the lender and may or may not be realistic.  I've seen listing agents cutting prices well below what the lender's accept just to get an offer on the table so they can get the ball rolling with the loss mitigation department.   This results in frustrated buyer's when the lender comes back with an approved price over the asking price.  It still may be a good

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This week saw the biggest one week decline in interest rates in 27 years!  According to Freddie Mac, the 30-year fixed-rate mortgage averaged 5.53% for the week ending Dec. 3, down from 5.97%.  These are the lowest rates since January and nearly a full point lower than a month ago.

Frank Nothaft, Freddie Mac vice president and chief economist said the recent plunge in rates contributed to a nearly 150% increase in mortgage applications over Thanksgiving week.  Nothaft also said refinances jumped 300%.

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The first step for a lender starting the foreclosure process is when a "notice of default" (NOD) is recorded with the county.  A local company, Idaho Data Providers, tracks foreclosure filings and reported NOD's in November were down about 30% compared to October (221 compared to 315).

Ada County is comprised of Boise, Meridian, Kuna, Star, and Eagle Idaho.  Canyon County notice of defaults also decreased.

Before homes go to the foreclosure auction, they are known as "pre-foreclosures." Many of the short sales you see are in the pre-foreclosure stage.  You can browse the Boise short sales here.  Also check out the Meridian short sales and Eagle short sales real estate links.  Be sure to sign up for email alerts!

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An absorption rate is a real estate term used to give an indication of the supply and demand in the market.  It is simply calculated by taking the number of homes for sale and dividing it by the monthly sales.  For example, if there were 5000 homes are for sale and 500 sold in a given month, the absorption rate would be 10 months.

I calculated the absorption rates for the Ada County real estate market for the last year.  I separated new construction from existing homes.  Ada County is comprised of Boise, Meridian, Eagle, Kuna, and Star Idaho.

Ada County Absorption Rates A balanced real estate market would be reflected by a 5 or 6 month absorption rate.  As you can see, we still have a glut of supply that needs to be worked through.

By comparison, at the peak of the market

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