Hi everyone! I just received a questionnaire from  Steve McLinden @ Bankrate.com

The following are my responses to his questions about how the Real Estate Market went from Maximum acceleration to backwards and the cause and effect -

Q. Hi.I am a real estate journalist with Bankrate.com and am working on a piece on the largest foreclosure markets in the U.S. - of which Boise City (somewhat surprisingly) is one.

           Response: ( Not really surprising considering we had 20%+ Appreciation annually from 2003-2006 - What economy can sustain 20% + annual appreciation?)

Q. My questions, posed to you for email response, are:
 What led to the foreclosure situation in that market?

          Response:  20%+ Appreciation annually from 2003-2006 - What economy can sustain 20% + appreciation?) Add to this the availability of stated income loans - Interest only loans - 90%+ investor loans - sub 6% interest rates and you have all  the ingredients for the "perfect Real Estate Tsunami.

Q.  How can consumers (buyers) take advantage of it?

         Response: As many savvy Billionaires have stated publicly  "Buy when everyone else is selling - and sell when everyone else is buying. Today's Prices have bottomed out in many areas and are in many places severely under replacement costs. Buying now while rates are White Hot and home prices are Sub Value is where tomorrow's profits are incubating.

 
Q. How can existing homeowners sell homes there?

       Response:  Easy - Price below competing Bank Owned Property - Stage home for maximum acceptance and offer incentives paying closing costs if needed. The fact that the home you are living in has depreciated is not a reason to stay out of the market. The market does not discriminate - If you have to give your house away to allow you to take advantage of another sellers similar dilemma then it is all relative. The important part is making sure the property you are buying is more valuable (faster appreciating) than the one you are selling -

Q. What will it take to pull out of the current doldrums?

       Response: More Incentives from public or private sector ....or unemployment figures below 8% The entire housing crisis could have been derailed by the Gov't stepping in way early in 2003 and tightening the loan requirements. Once they missed that opportunity the next FIX should have been instead of bailing out the Banks & the Insurance industry and appropriating a near trillion dollar stimulus package, they could have created a public mortgage option offering 3% fixed rate interest for 10 years and requiring loan applicants to actually qualify for their loans. This would have stopped the run away home value deflation and provided a softer landing.

Q. I apologize for the short notice, but please send comments of any length to me by mid-day Tues., Dec. 29th. Unfortunately, this is a quick-turnaround story.

          Response: No problem Steve - As a Buyer's Agent I am used to short notice-) Thanks for asking - always happy to provide counsel

*Questions in Questionnaire were to me from Steve Mclindend below. Responses were posted after each question

Thanks and Happy Holidays,
Steve
Steve McLinden
Bankrate.com
(817) 483-8510
Dallas area CST)

Warm regards,

Dale Alverson
e-Pro Certified
Certified Buyer Broker (CBB) - (Only One in Idaho)
Certified Relocation Professional (CRP) (one of 4 in Idaho)
Accredited Buyer Representative (ABR) (#70 of 54,000 USA)   35+ years  - Representing Clients - not Sales -   43 Degrees North Real Estate
www.teamboise.com
dale@teamboise.com
Direct Cell 208-863-3093
Toll Free 800-359-0855
Fax 208-338-1010