Rate Of Increase In Short Sale Listings Slows Down
New REO Listings Increase Sharply
As another all time record was set for foreclosure starts, it appears the foreclosure crisis is far from over in the Treasure Valley. For the first time in history Default Notices for Ada and Canyon Counties combined totaled over 800 in July! Ada county lead the way with 534 Notices and Canyon County added its voice with 285 starts.
"This trend is likely to continue throughout the year and well into 2010" Idaho Data Providers.com President Charlie Nate said. "Many of the other compounding variables that were previously forecast in Idaho Data's 'Real Estate Market and Foreclosure Outlook for 2009' are coming into play just as we thought." Nate Stated. These include rising unemployment, tighter credit, mortgage resets and declining home values. "We may not even be at the middle of this thing yet" Nate said.
Ada County Sets New All Time Record with 534 Defaults in July!
For the first time ever Ada County foreclosure starts broke the 500 mark with 534 new Default Notices. Ada County set a new record every month in 2009 with the exception of April. Since January of 2009 a total of 3,145 new foreclosure starts have been filed in Ada County. This is up 359% from 2007 when 685 starts were filed during the same period and is up 95% from 2008 when 1,611 starts were filed.
Foreclosure Rates Hold Steady in Canyon County!
Canyon County foreclosure starts reached their highest peak this year in the month of March with 346 new filings. However, since March, Canyon County has seen a slight decrease and is holding steady with between 280 - 300 new filings each month. July held true to this average with 285 new foreclosure starts. So far in 2009 a total of 2,059 new foreclosure starts have been filed in Canyon County. This is a 563% increase from 2007 when 444 starts were filed and an 87% increase over 2008 when 1,099 starts were filed in the same January through July period.
As the graph below illustrates, the consistent increase in Ada County Defaults is pushing the total local filings higher each month. "Idaho Data expects the total filings to continue on a vertical path for the rest of the year!"Idaho Data Providers.com President Charlie Nate said.
Rate of Increase in Short Sale Listings Slows Down!
The rate of short sale listings has finally seemed to start slowing down and level off with only a 1.5% increase over June with a total of 2,685 short sale listings on the market in July.
New REO Listings Increase Sharply
Total REO listings reached a low point of 986 listings in May. June began the upward climb again with 1,011 REO's listed, a 2.5% increase. July continued this trend with a sharp 9.1% increase up to 1,103 REO Listings. More REO's on the market is never a good sign as this results in more downward pressure on the market value of every home in the market distressed or not.
Lender REO (Real Estate Owned) properties are those that the lender obtains title to after a foreclosure auction when no one else buys the property at auction. When a REO property is then listed by the lender, it is usually sold at a discount off of market value. These discounted properties are similar to short sales by having the effect of depressing overall market prices.
Total Distressed Listings Continue Climbing Exceed 3780!
Together, new short sale listings, and new bank owned REO's caused the total number of distressed properties to hit the local real estate market to rise another 3.6% in July. We now have a total of 3,788 distressed properties listed in our local real estate market. In order for the market to change direction and start improving these distressed properties will need to be cleared out to make way for the additional hundreds of new distressed properties that are in the foreclosure pipeline.
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