Banks are forced to keep foreclosed homes vacant and appraisals may be lowering the values of inhabited homes due to the low closing prices or no sales at all.

Betsy and I were walking the dog two days ago and met a couple on the bike path that are nearly out of time and will be packing up their home of 12 years starting this weekend.  Independence Day was a reason to celebrate – but for many Americans there was no home for the family barbeque.

As this month began about 130,000 homeowners were enrolled in a three-month trial modification of some sort.  The Treasury Department was poised to disperse $18.6 billion to 25 mortgage companies around the country to assist with loan modifications.

I have a “wait and see” position.

Banks are using money to repay debt, purchase other banks, and in some cases seem to be hoarding the funds.

In other words, just about everything except loaning the funds to the folks that want to help rid neighborhoods of empty homes with unkempt yards that produce no taxes to government at any level.

As people continue to lose their jobs and are unable to make their home payments there will continue to be a wide array of distressed properties in addition to the pre-foreclosure and foreclosure portion of the market.

Many of us known Kim from her tireless efforts on behalf of Kinderhaven where she is President and served on the Board of Directors.  She has over 20 years of financial field experience and will need every bit of that experience to work with Sandpoint businesses.

The numbers are in for March 2009 and overall existing home sales which include co-ops, townhomes, and condos dropped three percent nationally.   Sales across the country were 7.1% lower than March of 2008.

I am cautioning my buyer clients to not react to every up and down in the marketplace.  Investors and first-time homebuyers are driving the market up in many areas due to the inventory of affordable homes and foreclosures coupled with stimulus inspired tax credits for the first time buyers.

Looking back at the available data from March it is noteworthy that distressed properties were the star of nearly half of March 2009’s transactions.   Not a surprise considering that they typically sold for 20 percent less than traditional homes according to the National Association of Realtors (NAR).

One reason for this segment of the market leading the way is due to the higher interest rates on jumbo loans where completed transactions have come to a crawl around the country.  The opportunities for investors in Sandpoint are expanding from pre-foreclosures and foreclosures to include a spectrum of distressed properties.

Before you make a move make sure you talk to a Consultant and Realtor that knows the details of the local market in and around Sandpoint, Idaho.  Got questions?  Ask Ray.