We are the same, but different
Even though we may have our own economy here, it is always interesting to see how we compare to the rest of the nation when it comes to real estate trends. Given that our own foreclosure and short sales have fallen by roughly 37 percent from the previous year, we were interested to read, in Realtor Magazine, that a similar trend is taking place on a national level.
According to that article; "One of the biggest scars from the housing crisis - foreclosures - is rapidly fading away. Foreclosure activity posted a 15 percent month-to-month drop from October to November - the largest monthly drop in three years, RealtyTrac reports in its latest foreclosure report. What's more, foreclosure filings have posted a 37 percent decrease from year ago levels."
Just when we thought we were different we see we are exactly the same - at least where foreclosures are concerned. Although the article regards declines in "filings," we are interested to see that number consistent with our decrease in sales locally.
The U.S. government encourages caution though. In another story, earlier in the week, the magazine reported; The Obama administration's Housing Scorecard for November showed an improving housing market, with home prices remaining strong and foreclosures falling. But the administration cautions in the report that the recovery remains "fragile."
Economic and job growth and rising home prices "have helped to reduce foreclosure starts to levels not seen since 2005," says Kurt Usowski, the U.S. Department of Housing and Urban Development's deputy assistant secretary for economic affairs. "And although the number of homeowners 'underwater' is down more than 40 percent from its peak, the number remains historically elevated, meaning more work needs to be done to ensure the continued stability of the housing market."
"Although the housing market has largely recovered, there are still homeowners struggling, and it is key that we continue to help them," says Treasury Deputy Assistant Secretary Tim Bowler.
"The government's foreclosure mitigation programs are providing some relief to struggling homeowners. For example, more than 1.8 million homeowner assistance actions have taken place through the Making Home Affordable Program. Homeowners who have taken part through the government's Home Affordable Modification Program have saved on average about $547 monthly on their mortgage payments - nearly a 40 percent savings from their previous payment."
Even so, with a little effort we can still find some here whose current home values do not meet the price they paid at the pricing peak in 2007. We are delighted that with each passing month that number is dwindling and should we maintain our current trends, those folks too, will soon be made whole. We are indeed among the more fortunate. Our inventory is nearly 12 percent below last year at this time.
A newsletter provided to us by an agent Jerry Murphy in Phoenix tells us that:
"In the Phoenix Southeast Valley area, November 2013 active inventory was 4,548, a 16 percent increase from November 2012. There were 1,234 closings in November 2013, a 24 percent decrease from November 2012. Months of Inventory was 3.7, up from 2.4 in November 2012."
As you know this supply and demand driven commodity called real estate does not react well to increased inventory. Although that market had previous significant price increases, an increase in supply will likely lead to a slowdown in appreciation. Our decrease in inventory could signal continued appreciation.
Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.
Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.