Treasure Valley housing still in intensive care

In Ada County, distressed homes were 44 percent of all homes sold, slightly up from the previous month (42 percent) but down from August 2009 (50 percent). Homes for Sale Of those sales, bank-owned properties were 63 percent and short sales 37 percent. The split between bank-owned and short sales was 70/30. Meanwhile, the number of Homes for Sale has dwindled to a five-year low. Distressed homes make up 35 percent of those for sale in Ada County and 52 percent in Canyon County. Notices of default numbered 707, trustee sales hit 881 and bank repossessions 272. More than half of the filings were in Ada and Canyon counties. It also requires lenders to notify homeowners whether they qualify for a loan modification within 45 days of a modification request. But he said the new requirements also could extend the timeline for homeowners heading into foreclosure. This year the process seems to be moving even better, Birch said. Even those denied loan modifications are getting help, thanks to increased skill among staff at the banks, political pressure and public outcry, he said. Foreclosure proceedings were started against 13 percent. Morgan Chase Bank still need substantial improvement based on second-quarter evaluations. Idaho has fewer loan modifications that other states, according to the report. Only 2,585 have become permanent, and 405 are in a trial phase. Interest rates for home mortgages rose from 11 percent in 1979 to almost 16 percent, cutting sales in half and reducing prices. But it delivered many of the same impacts, including losses of jobs and homes and the closing or shrinking of businesses. Sandra ForesterThe supply of homes for sale in the Treasure Valley has fallen to its lowest level since June 2006, when the home-buying binge was first beginning to fade. On the surface, that seems like a recipe for surging home prices and sales. Every time he walks out his front door in Northwest Boise, he fumes as he looks at the condo that got away. He and his wife, Lori, wanted to move closer to her sister in Boise. Two days later, he learned the deal fallen through. Needing a home, McDevitt scrambled to buy another condo nearby for $45,000. Instead of trees, it offered a view of the parking lot. Unlike the first unit, it had no appliances and needed painting and new flooring. That means their sellers were in such deep financial trouble that their homes had either been repossessed by the bank in foreclosures or were being sold for less than the amounts still owed on the mortgages. Since 2006, one of every two residential-construction jobs in the Valley has disappeared. Median home prices were up $23,000 in August from their lows of $135,000 in January and April. The median price this year peaked at $83,000 in June, then fell $4,500 in July and August. Tougher lending standards since the financial meltdown of 2008 and 2009 make it hard for some would-be buyers to qualify for loans. Too many such sellers at once could keep prices low. Out-of-state buyers, including retirees and semi-retirees, are fueling home purchases in Southeast Boise and elsewhere. Idaho Transportation Department records show that after several years of decline, in-migration bottomed out in 2009 at 7,000 and rose to 8,000 in 2010. The husband, in his 50s, is retired; the wife is a nurse. He points to data showing that prices in the first half of the last price appreciation were closer to the rate of inflation. Some comments may be reprinted elsewhere in the site or in the newspaper. Comments that are profane, personal attacks or otherwise inappropriate or are off topic are subject to removal. Do not flag comments merely because you disagree with the comment. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. The goal of story comments is to allow discussion, not just one point of view. If you think a comment violates our guidelines, click the "report abuse" button to notify us. Responding to the comment will only encourage bad behavior by those folks who just want the attention. Don't say anything in a way you wouldn't want your own child to hear. Only post comments relevant to the article at hand. That's akin to yelling and not appreciated by the audience. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for review. You also may notify us via email at onlinenews@idahostatesman. Remember, you may find some material objectionable that we won't and vice versa. This material may not be published, broadcast, rewritten or redistributed.