Idaho Data Providers Market Report – January 2011
4,845 Housing Defaults in Ada County for 2010 – A 9% Drop from 2009
3,169 Housing Defaults in Canyon County for 2010- A 4% Drop from 2009
Another year has passed in the Housing Market with Foreclosures, Short Sales, and Bank Owned Properties still in the headlines. In 2010 Treasure Valley defaults showed a slight decrease in total volume comparing them to 2009. This could be attributed to the temporary freeze on foreclosure sales imposed by the major lenders in the final quarter of 2010 as they had to clean up document procedures relating to home foreclosures.
Currently in 2011 more complications have surfaced with foreclosure documents that will stretch out the correction of the housing market even further. In Massachusetts a class action suit has resumed after being halted for a period of time. The case surrounds the issue of banks foreclosing when the bank does not own the loan. Many times loans are transferred or “sold” to other entities and although the bank has purchased the loan and owns it electronically, no documentation or “assignment” was recorded at the county level which is against the law in many states. "This along with the 'robo-signing' controversy has increased the shadow inventories held by banks causing a bulge in the foreclosure pipeline. These properties must be released by lenders to relieve the backlog and get back to a systematic flow of defaulted properties." said Charlie Nate president of Idaho Data Providers.com.
Look for 2011 to be a peak year in Foreclosure filings because of the release of banks shadow inventory of properties in default but not yet in foreclosure. Additionally the halt of foreclosure sales in late 2010 has created huge numbers pending foreclosures that must be finished in 2011 which will account for a record number of homes in foreclosure. Idaho Data Providers believes there will be a sharp spike in defaults in early 2011 and that new foreclosures will continue at a near record pace throughout 2011.
Ada & Canyon Notice of Default Statistics
Ada County Filings up 32% from November with 376 Notices of Default Filed in December
Ada County housing defaults rose 32% in December over November with 376 default filings. Historically December is a slower month with lenders holding off on the filing of new defaults, however December of 2010 breaks that trend with defaults rising. This trend should continue throughout the coming months of 2011.
Comparing Ada County numbers year over year through December, a total of 4,845 notices were filed in 2010 which is up 300% through December of 2007 when 1,209 defaults were filed and up 58% from 2008 when 3,081 homes entered into default. However, in the year of 2010 Ada County is down 9% compared to the same period in 2009 when 5,346 filings were recorded.
Canyon County Foreclosures remain unchanged from November with 183 filings in December!
182 Filings in Canyon County is the lowest number of recorded Defaults since November of 2008 when 185 filings were recorded. December of 2010 saw another abnormally low month with another 183 filings. Look for Canyon County Defaults to spike in the spring of 2011
Comparing Canyon County numbers year over year through December, a total of 3,169 notices were filed in 2010. This is up 227% through December of 2007 when 969 defaults were filed and up 49% through December of 2008 when 2,121 homes entered into default. However for the year of 2010 Canyon County is down 4% compared to the same period in 2009 when 3,314 filings were recorded.
Short Sales down 12.4% from November with 2,057 Short Sales Listed in December
Short Sale listings have dropped significantly! A slide of 12.4% in just one month! This could be attributed to the decline in default starts over the past few months and a seasonal slowdown in the local real estate market. As housing defaults increase look for short sale listings to follow in 2011.
REO Listings Drop for Third Consecutive Month.
REO listings dropped another 2.5% in December due to banks holding more properties off the market as they work to clear up issues with their handling of foreclosure documents. Look for this number to increase in early 2011 as banks start to take back more properties that are not sold at auction and release more of the REO inventory they have been holding off the market.
Total Distressed Lisings Decline for 6yh Consecutive Month
In 2011 look for Short Sale and REO listings to rise, increasing the total number of distressed properties needing to be cleared off the market at rock bottom prices. The 3,838 total distressed listings for December were down from 4,137 listings in November a 7% decrease. Expect this trend to reverse as more foreclosures enter the market. Another drop in Treasure Valley home values is expected in 2011 and the only answer is to clear out the distressed properties.
Idaho Data Providers.com is Idaho’s and the Treasure Valley’s local source for current, accurate and detailed foreclosure listings, with detailed profiles pages for each property in the foreclosure process. Our database is updated and tracked daily. For questions or inquiries about this report please contact Charlie Nate at 208-860-6786
