Real Estate activity was high in 2009

I was shocked when I pulled together the numbers for real estate transactions for 2009 from our Mountain Central MLS. Our MLS includes areas of McCall, east of New Meadows and Council, south as far as Smith Ferrys and back country areas of Warren and Yellow Pine. There were 436 residential units sold for 2009 - compared to only 216 residential units sold in 2008. I would say that the housing economy rallied a little bit 2009 for our area, wouldn't you? This is good news.
However, the other part of the equation is the median sales prices. In 2009 it was $179,077 and in 2008 it was $251,625. It was down almost 29% in 2009 over 2008, which probably has a lot to do with why the sales increased. So that leads to the question, have we found bottom? Now with the number of sales increasing, and bidding wars happening on many banked owned properties and multiple offers being presented on short sales, it may indicate we have found an attractive price point and with demand growing might lead to rise in prices.
You can make your own conclusions from the information, however it all indicates a good time to buy. Interest rates are still low, selection is still good and most importantly - the lakes, trees and fresh air aren't going anywhere. Happy New Year!

Summer sales reports for McCall Idaho

For the last two weeks, our thoughts and hearts have been drawn towards the Summer Olympic Games and watching our favorite athletes go for gold. It has been a nice break to turn on the TV and not hear about the economic woes of America.
In this beautiful resort town of McCall Idaho real estate is often the topic of conversation as much of our industry here is based on tourism and real estate development, and it too has its shares of woes.
However, when you pull up the real estate home sales from last year and compare them to this year, it really is not too far off.
In 2007, for McCall there were 17 closed home sales in June, 5 sales in July, and 7 sales for the first two weeks of August. For 2008, in McCall there have been 4 closed home sales in June, 14 sales in July and 4 sales for the first two weeks in August.
Many feel that it is a buyers market out there, with foreclosures and short sales really pushing prices down and inventory still high - there are great prices, many great properties to choose from and interest rates still attractive.
As a new home buyers, the Housing Economic Recovery Act of 2008, offers a first time home buyer tax credit up to $7500 for anyone purchasing a home after April 9, 2008.
There still seems to be a solid real estate market in McCall; although with our high inventory numbers it just feels that things are not moving very quickly, making it tough on Sellers.
But hang in there and keep your thoughts on the gold.

WSJ states The Housing Crisis is Over

On May 6, Wall Street journal published an article, "The Housing Crisis is Over" stating that April 2008 will mark the bottom of the US Housing Market. Reaching the bottom of the housing market does not mean that we will instantly go back to the heady prices of 2005, but that we will no longer be getting worse. With housing prices continuing to drop for close to three years now and new construction starts at an all time low, we are starting to become affordable again for American Families. Inventory levels are starting to slow with a prediction that when we reach a 5-month of inventory level sometime in 2009, which historically signals a tightness in the housing market, this will eventually turn around the housing market all together.
Historically McCall has also had its ups and downs with real estate trends but rarely with the down prices every reaching as low as it was in the last down turn. If we haven't hit bottom for real estate prices in McCall for this current downturn than we have to be pretty darn close. And with mortgage rates still low, the environment to buy a home can't get too much better.
With summer right around the corner, we will still see people water skiing on Payette Lake, shopping at the cute stores in downtown, and eating out at the variety of restaurants throughout town.
It has been three years of this current housing bust; it is time to stop mopping and enjoy life again. Real estate has always been deemed a long term investment and one meant to be enjoyed!

Understanding Foreclosures and Resort Towns

Over 2.3 million foreclosures were reported for 2007 according to Realty Trac which puts that on a national average of 1% of every household to go into foreclosure. National lending institutes are now waiting almost 180 days prior to filing for foreclosure when a homeowner stops making payments, which is up from the previous 60 day grace period of years past. It is staggering to see the amount of public notices for trustee sales in the local papers even in small resort towns like McCall, Idaho.

In McCall, we see many of our foreclosures from builders or developers that are hanging onto too much inventory. For those that have been looking to buy property in McCall wonder if these are the times to be searching for some good deals and in some cases they are, particularly if the home is currently on the market.

The process on non-judical foreclosures can take up to 120 days which can give the Seller time to sell the property or recind the process. If the Seller is motivated to get it sold and the note on the property exceeds current market values, there is a strong chance that the lending institute may be willing to short sale the property.

Short Sales have been the latest buzz words around the real estate community and it is not referring to the time frame but that someone is getting "shorted" and generally it is means the lender. It is often during the foreclosure process that sellers and lenders agree to a short sale so that many of these properties can be sold prior to going to auction.

To lose your home in a foreclosure is not a process I would wish upon anyone, and I full heartedly support the Government for their continuing efforts to keep as many people in their homes as possible, however it is an opportunity for those that can afford it to find a good deal on a property.

There are also many aspects of a short sale or foreclosure that buyers need to be aware of, such as the property may have been sitting vacant for a long time and other items may be lingering on the title. If you would like to discuss short sale or foreclosures in more details and what is currently being offered in the McCall area, please don't hesitate to call or email.