Client Update, 5/14/2010

Happy Friday!


I've been having lots of questions from friends and clients about the
news surrounding our recent increase in real estate activity here in the
valley so I want to pass along to you what I have been passing along to
them:

Yes, it is true we are up approximately 100% in number of sales over
this time last year. However most of the properties that have been
selling are either distress sales or properties that have been taken in
foreclosure by a lender. While this is a positive and necessary step
towards a healthy real estate economy, we are not there yet. Before I
will truly consider our economy healthy, and before we will see prices
stabilize, we will need to sell through all of the short-sales and
foreclosures. Now is still a great opportunity to buy, however unless
you absolutely need to sell it's not the best time to list your home.
Below I have attached links to some positive articles that show the
national trends are positive. I am hopeful that by 2011 Blaine County
will be back to a truly heathy market.

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Housing Prices to Rise 3-5% This Year
http://www.cnbc.com/id/37061639


John Paulson, the hedge-fund manager who made $15 billion shorting the
real estate market, said Monday that he expects housing prices to rise
between 3 and 5 percent this year and another 8 to 12 percent in 2011.

Paulson, who made his comments in a conference call with investors, said
home ownership is the most affordable it has been in 50 years. He said
residential real estate is 60 percent more affordable than it was at the
peak of the housing bubble.

And another positive article from US News and World Report states that
Idaho is on of the 10 states projected to have the highest growth in
income over the next five years. Read more at:


States Where Incomes Will Soar, and Stagnate
http://www.usnews.com/money/blogs/flowchart/2010/5/7/states-where-incomes-will-soar-and-stagnate.html


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All in all the national news is good and this will follow to our neck of
the woods. Locally we are thrilled to see the new town plaza underway
and great strides being made towards approving some of the new hotel
projects.

Wishing you a wonderful spring weekend. Please don't hesitate to call us
if we can help with any of your real estate needs!

Katherine Rixon, Rob Cronin and Rob Hogan