That is the question of the month! Some say yes. I would like to believe that but there are some scary things still going on that make me wonder. I still see many foreclosures in the pipeline and if interest rates edge up, some arbitrary buyers will feel like they have missed their chance.

Most of us that have been around for awhile, (I don’t like the sounds of that!!) can remember when any interest rate under 10% was great. We have been spoiled with these low rates for so long that many people think this is normal. If rates went up, even to 7 or 8, the buyers would run for the hills!! It would also force some buyers out of the market. A 1% jump in interest rate can really affect the kind of home a first time buyer can qualify for.

Idaho is one of the top five states, according to Moody’s Economy.com., that jobs growth will return to first, starting in the last quarter of this year. The other 4 are Colorado,
Oregon, Texas & Washington.

The next wave, in the second quarter of 2010, is expected in seven states: Alaska, Arkansas, Iowa, New Hampshire, South Carolina, Tennessee and Wyoming.

There is a really neat chart to watch the progression of the economic health of every state. It can be found at MSNBC. Select any state to see data for each area. It will show you month by month when the recession hit. You will also see housing starts, employment, and lots of other interesting data. There’s a 2 month lag time but it is updated every month.

I think we have a ways to go yet, maybe even a couple of years, before we can see the light at the end of the tunnel. Unfortunately, it’s an awfully long tunnel.

These are getting to be very common words these days. It doesn’t give me the ‘warm fuzzies’ either! According to the Mortgage Brokers Association, since they have been studying these statistics, 3.3% of mortgages in March, the highest ever recorded number of loans, are in foreclosure.

Some staggering numbers:

• The Treasury Department says that 6 million families face foreclosure in the next few years.
• 8.3 million mortgages or 20% of all mortgages are upside down or owe more than they are worth.
• This year there has been one foreclosure every 13 seconds.

There are some dirt bags out there preying on vulnerable people saying that they will get you out of trouble. Don’t ever give any personal information, let alone sign over your deed, to these people. Check everyone out and know that there are legitimate organizations that are willing to help you.

If you owe more than your house is worth contact your lender or try free assistance on how to prevent foreclosure, click here. This is a HUD approved housing counseling agency. Another credit counselor is the Homeownership Preservation Foundation: 888-995-HOPE.

You may qualify for a new government loan modification program. The Treasury Department is setting up a new web site to explain the program www.financialstability.gov.
A state by state list of qualified credit counselors and debtor education agencies at the Justice Dept.’s website.

It seems that all the foreclosure, short sales, and work-out programs are moving at a snails pace but it does give a homeowner more time to find a program that may work for them.

Idaho Falls has always been pretty much insulated from much of the turmoil that goes on around the country. We usually have had a steady 3% appreciation rate come rain or shine. We sometimes envied the California folks. “We may have to work for a year to make the same income as one or two California sales.” No such envy now! I guess our slow and steady turtle pace is trumping that rabbit nowadays. Our market is still holding steady. We have seen a bit of a value decline but nowhere near the nose dive that some markets suffered.

This is not to say that we are not feeling some pain. I’m seeing many more foreclosures and short sales these days. Our typical foreclosure property was usually 100k or less, now we are seeing all price ranges and 200K up to over 500k is not uncommon at all, but needless to say, it is sure not something we are accustomed to. I would say the upper price range has suffered the most because we had too many spec homes that got caught in this economic downturn. We have more than a 2 – 4 year supply of homes in the upper ranges.

The market has started to pick up this month and we are actually beginning to see summer trying to emerge. I think I can put my snowblower away. Buyers are getting the urge to take advantage of the low interest rates and great loan programs available. Gone are the ‘stated income’ loans (which is the way it should be) and good credit “rules”.