That climate lead many north valley buyers to conclude that real estate prices are now at, or near, the bottom and this is an excellent time to pursue their lifelong passion of owning property in the Wood River Valley. Moreover, of the 166 homes listed for sale at year’s end, just three percent of the resort area homes are considered distressed properties.

Activity in the condominium/townhouse segment of our resort marketplace was also encouraging. According to the Sun Valley Board of Realtor database, 156 resort area condos sold in the past year, compared to 111 units that sold during 2010.  That’s a 40 percent increase and the highest number of condo units sold since 2007. I see this trend continuing  in 2012, with buyers who had postponed plans for a second home or vacation property during the economic turmoil, now taking advantage of attractive pricing, low interest rates and plentiful inventory.

For the Hailey and Bellevue single-family market, the bottom appears to be a very soggy place. In 2011, of the 94 single family sales recorded, 61 percent were either foreclosed properties being re-sold by banks or short sale transactions. Those distressed properties sold for an average of $104 per square foot, or 22 percent less than the distressed sales in 2010. We believe the south valley market will continue to struggle due to the inventory of foreclosure homes that have not yet been re-listed for sale.

Nonetheless, there are reasons to remain hopeful that real estate values will begin to rebound in 2012: 1) home prices and interest rates have become more affordable, 2) the bank-owned properties are being bought up quickly, and 3) many national experts predict, with the national economy beginning to recover, the number of homeowners falling into default will decrease in 2012. With those factors in mind, families and retiring baby boomers will continue to seek out healthy communities that offer amenities that we enjoy such as recreational opportunities, excellent schools and quality health care.

If you or someone you know have a question or need professional real estate advice, please don’t hesitate to call me. In the meantime, I hope you find our “Year in Review” newsletter informative and I look forward to working with you in the future.

Sincerely,

Dan Gorham

In the local real estate market, the biggest story of 2011 has been the surge in sales in the affordably priced inventory. In the past 12 months there have been 206 sales of residential units with sales prices under $300,000, compared to 125 closings a year ago, an increase of nearly 65 percent. The attached graphs also show that condo sales have remained strong throughout the year, climbing 52 percent from a year ago when 104 units closed escrow compared to 158 in the past 12 months. In the single family market, the number of sales is up 7.3 percent while the average sale price per square foot declined 15.7 percent. Our data shows the average sold price was down 14 percent, driven largely by the uptick in home sales priced under $300,000.

 My second graph looks specifically at the distressed market in Blaine County. I broken out activity for both short sales and bank-owned properties. (A short sale is when proceeds from selling the property will fall short of the mortgages owed and the lien holders has agreed to accept less than the amount owed on the debt. An REO is bank-owned property that has been through the foreclosure process and is being re-listed for sale)

 In my review, the accompanying graph shows the following:

A)Most of the single-family sales in the resort market remain traditional equity sales;

B)Distressed single-family listings in the resort market appear to be in the decline;

C)Almost a third of the available homes for sale in Hailey are distressed;

D)Over half the homes recently sold in Hailey and Bellevue were distressed;

E)Banks are not in the business of owning and managing homes and want these properties sold;

 This report is designed to give you a broad overview of the Blaine County market. I’d be happy to discuss with you in more detail the value of properties in specific neighborhoods or to learn more about your long-term real estate needs. I always appreciate referrals and look forward to working with you in the future. Please don’t hesitate to call with any questions you may have.

Sincerely,