The age of homebuyers was surprising.  Forty-two percent of all homebuyers were under the age of 35 and 67 percent of all first-time homebuyers were under 35 years old. Nearly half of all home buyers were under the age of 35. Two thirds of first time home buyers were under the age of 35. 89% of homebuyers searched online. This is up since 2006 when only 80% of buyers were online. So if your home is for sale it has to be all over the internet.  A good Realtor can get your home out there so it is found. For Sale By Owners (FSBO pronounced FIZZBO) did not do well in 2010. 83% of all homes sold were by Realtors.

 50 percent of all homebuyers were first-time homebuyers (36 percent in 2006, 41 percent in 2008). I particularly like that number. If the starter homes are not selling, then the move up homes will not sell. The cycle begins with the 1^st time buyer and if that part is not being fed with homeowners, not investors then the market stalls.  23 percent of all first-time homebuyers were single females and 15 percent were single males. WOW 45 % of all 1^st time homebuyers were not married. I suspect this number is slightly lower based upon partnerships instead of marriages that some couples prefer. However it is still remarkable that many are single. 85 percent of all first-time homebuyers make less than $100,000. 75% of 1^st time homebuyers lived in an apartment prior to buying a home. The real question is how many lived at home? And how many parents are very happy that their kids live somewhere other than home?

Some more numbers for you:

-       41% of all homes sold were on the market for less than one month –The average in Ada County is 3 months

-       17% of all buyers purchased a home for less than 90 percent asking price. In Ada County homes sell for 96-97% of the listed price on average.

-       11% of all buyers purchased a home for more than 100% asking price

-       81% of all buyers were satisfied with the home buying process 

-       40% of all purchasers found the mortgage process more difficult than expected.

-       92% of all purchasers were not rejected by a single lender – Very Surprising!

I was watching a kids show the other day and was reminded of some things about the Pilgrims. First it is said they were not really seeking new land. They say they wanted religious freedom. However they had already found religious freedom in Holland, according to a story I read on the net, http://www.holidays.net/thanksgiving/Pilgrims , yet they were concerned about the morals in Holland so off to America they went. I believe they wanted a place of their own. Remember The American Dream?

 The show talked about Samoset an Abnaki Indian whose tribe had been nearly wiped out in the New England area that the Pilgrims had settled in due to disease. It is estimated that 75% of the Indians in that area had died. Here’s when the land grab happened. See there was no land purchase, no eminent domain, just a taking of the land. Here is where we will live and claim it as our own the Pilgrims said. No one complained because the land had become vacant by the many that had died due to disease years before. As a Realtor I am here to tell ya, it might have been a hard sell anyway if the Pilgrims knew about it before settling there. Talk about a disclosure issue.

Samoset had learned English from the Captains of fishing vessels. His first thought was to help the Pilgrims by bringing in another Indian, Squanto, who spoke English better. Squanto had actually been to England and Spain which is where he learned to speak English. What a great idea Samoset had. I never really remembered Samoset from my youth, however I like him. He didn’t run out and hire an attorney to get back his land, a windfall or start a war. He extended a hand of friendship. True friendship. Let me help you and when I can’t do enough let me find someone who can do more. He knew there was enough to share and was kind enough to do so. How many of us remember to extend a helping hand to those in need.Then the Pilgrims remembered to do what was right. They shared as well. They invited the Indians back to enjoy the harvest with them. They also shared with newcomers to the settlement as well.

As I was driving through town the other week I noticed a line of people outside of St Vincent’s on Main St. People had lined up and were waiting for Thanksgiving dinner food boxes. Man I thought, how sad is that? So many people needing help. What I should have said is how can I help? What could I do, like Samoset did to help? So I ask you my dear readers, what can you do? How can you be like Samoset? Happy Thanksgiving to All

Some believe that the lawsuit into foreclosures brought forth by the 50 State Attorneys General could become derailed. Half of the executive committee, 6 out of the 12, lost their bid for re-election. I imagine it will depend on how the newly elected officials decide to pursue the interests of the voters.

What do I think you ask? Well you know I will share that with you. I believe it will help real estate. The American population was not happy with what was happening and sent a strong message. That message was, We want to feel safe in our pursuit of happiness. We want to know that our way of life is not going to collapse. We want to be reassured that those things we hold dear will be there tomorrow. Like the job we love or hate will still be there tomorrow. We want to know that our homes will not be worthless. That we made good decisions, certain members of our government were not and we wanted to let them know how unhappy we the American people were about it. And boy howdy did the voters let them know.

I can feel it starting. The swell that will lift us out of the worst we have seen in over 70 years if ya listen to Butch. I have been saying that the worst of it is over in real estate. Prices are low yet homes are selling. A local economist announced Thursday at the Boise Chamber of Commerce breakfast, the recession is over. It will be a slow road back he said. Of course, I say, it should be a slow road to recovery. Fine wines, aged beef, relationships, love are all better when time is taken. The people have sent a message, the elected officials need to hear it, respect it and pursue it with a passion. So yeah, I believe it will help real estate.

Where do we go from here? In my thoughts residential real estate will stay relatively flat here in Idaho with perhaps a 1-2% gain over the next couple of years. It is important to remember that real estate in Idaho generally appreciates at 4% per year on average. More importantly we need people to get back to work. We need jobs here in Meridian that pay more than $10.00 dollars an hour. If the majority of jobs are $10.00 dollars per hour and are part time with no health benefits, it will become difficult for first time home buyers to buy a home. Unless the cost of the home stays low. If you recall one of the things that helped caused the real estate bust was first time buyers were priced out of the market. If you can’t sell a starter home to an owner occupant, the move up homes become unreachable. The market stalls and well you know the rest.

The City of Meridian has begun working on The Health Sciences & Technology Corridor, The Core (www.thecoreidaho.com). [Please see map] They also have the Meridian Development Corporation (MDC) For more information about the MDC, please visit its web site  www.meridiandevelopmentcorp.com or contact MDC Administrator Shaun Wardle at 863-4160.

Let’s keep moving forward and pull ourselves up and out of this mess we are in. We have done it before as a Nation and there is no reason we can’t do it now. There is no quick fix. Just good planning and hard work.

My schedule was very difficult. I would get up late, usually by 7:00, make coffee and read. I actually read a complete book that had nothing to do with Real Estate or Sales etc. It was John Grogan’s “Longest Trip Home”. An excellent story of growing up in middle class America. When my family would wake up we would have breakfast together and then while it was still cool outside we would putter around the house doing various projects. Awesome! Gardening, starting a patio it was great!

We also supported the local economy by dining out a couple of times. We took in a movie, went to a baseball game and a soccer game or two, hiked on the Greenbelt, waded in the river, flew kites, went to the Meridian Symphony and basically just spent time together as a family with no true schedule or agenda. Very relaxing and enjoyable.

I had an excellent person watching over my real estate business while I was gone and we actually got some business done.

If you haven’t had a staycation in awhile. Thinks about trying one. Meridian is a great place to live and vacation. Now, as my wife says,  it’s time for me to get BACK TO WORK.

In the Treasure Valley our Multiple Listing Service (MLS) has 10,924 active residential listings of which we sell approximately 780 a month which equals  around a 14 month supply. Canyon county has 2,367 active residential listings of which we sell approximately 178 per month which equals about a  13 month supply. Ada county has 4,835 of which approximately 424 per month sell which equals about a 11.5 month supply. REO and in foreclosure properties make up about a 10% market share of active listings and if we add in short sales not in foreclosure it is about a 25% market share of active listings. Inventory is drying up. That is good news. Have foreclosures stopped? No, however; they are selling.

By June 30^th of last year we had reportedly sold 5586 homes in the Treasure Valley MLS. By June of this year we have sold  4840 homes. A decrease of 746 sold homes. In Meridian last year from January to June we sold 760 homes. This year same time frame we sold 742 homes. A decrease of 18 homes. Now that is not all bad news. Say what Rich??? We sold less homes so far and that is still ok? Yes, remember we used to count inventory in years when this all started. We currently have in Meridian 1146 active residential listings, homes available for sale.  We are selling about 124 homes per month and if we do the math we have about a 9 month supply. We used to count inventory by the number of years.  A six month supply is the goal. When inventory dries up, prices first stabilize and then may actually rise. Does this mean you can sell your home for whatever you want? No, I’m afraid not and the value is not going to increase overnight. It means perhaps we have turned a corner. It means builders may begin to build again. The recession started in real estate and for the recession to end real estate needs to be selling again. It is.

According to the National Foundation for Credit Counseling www.nfcc.org  the credit reporting companies have not yet officially come out with how negatively a short sale will affect your credit. A foreclosure will definitely affect your credit negatively for 7 years. And that’s not bad Rich? Well according to the FHA (Federal Housing Administration) who makes about a third of all loans currently; you can qualify for a home in 2 years after a bankruptcy and 3 years after a foreclosure. That’s not too bad. That will give you time to clean up your credit and get back on your feet again.

 How do you clean up your credit? Great question. First I would recommend that you go to www.annualcreditreport.com I would get a copy of my credit report to see what it says. Then I would go www.myfico.com to learn about how your credit score is determined (click on the education center). Here they will also teach you how to repair errors on your report. If you choose to pay someone to fix your credit report I would start with the Idaho Department of Finance call them at 208-332-8000. There were many people claiming to “fix/repair” your credit who just take your money and run. The Idaho Department of finance closed many of them down and requires them to be licensed in the State to perform credit repair. Currently there are only 7 licensed to do business in Idaho. Look before you leap and know your rights. There are people out there who take advantage of those who could use some help. However it is your job to be well informed.

As we get through this tough economic time I have seen many a good person go through foreclosure and bankruptcy. I hope and pray that we all come through it with dignity for ourselves and empathy for each other. Hard times are not a license to abandon decency and compassion. Rather they should strengthen us and help us get a grip on what is important. Health, family, friends. If you have these you are truly wealthy, without them you have not.

Rich, I am way confused. Last week you were excited about homes that were selling and you were very positive. You ended by saying that the number of sales was less than last year. What  has you so excited? The rest of the story dear reader is the amount of activity that is going on. Since January of this year I have put together 10 deals buyers and or sellers. WOW! This is something I am hearing all over the Treasure Valley. Realtors are writing and receiving offers. Several properties have had multiple offers being submitted on them. Dear Reader let me tell you, THAT IS EXCITING!! First time homebuyers are buying, investors are buying. THAT IS EXCITING!!, things are heating up! Once the first time buyers and the investors start buying that means people can begin moving up to a bigger home. The wheels are starting to move! THAT IS EXCITING!! New construction homes are selling. THAT IS EXCITING!! Hey Rich, if that is true why are the number of sales down? Great question. Speaking personally less than half the deals I had going on closed. UGH! Some fell due to the buyers not being able to obtain financing (the credit they once had gotten was no longer available), some fell because the lien holders (sometimes the first, sometimes a junior lien holder) did not want to take such a low offer and/or the buyers did not want to pay more. This is also something I am hearing throughout the Treasure Valley. It is a very different market and will continue to be so. However it is very exciting. Next week find out how to receive your own bail out from the Government.

Now as Paul Harvey would say, the rest of the story. In the same time frame last year we sold 44 more homes. Darn the luck. That means about an 11% decrease since the previous year. But Rich, you sounded so positive. HOMES ARE SELLING!!!  you said. They are selling dear reader, however; things have changed. What you ask? More on that next week.