Idaho Business Review reports the number of bank-owned homes for sale in southwest Idaho dropped almost 20 percent from February through the end of March.
The publication cites a recent report from Idaho Data Providers, which says the number of bank owned homes (REOs) dropped from 1,176 to 973 during that time period.
“This fact is worth mentioning since foreclosure sales are still occurring, and the vast majority of properties are going back to the lender, but there haven’t been that many REO sales to account for the decline,” Idaho Data Providers President Charlie Nate said in the report. “This is evidence that lenders are holding REOs off the market and probably renting them for a while to help keep the market stable.” – IdahoBusinessReview.com
Meridian lawyer and
Frontline Realty owner Lance Churchill told the Idaho Business Review that banks are still taking homes back through the foreclosure process, but are holding some of them off the market
“Fannie Mae, Freddie Mac and lenders have started programs in which they rent bank-owned homes to residents instead of selling the homes immediately, which helps keep the market from being flooded with REO properties, Churchill said. Fannie and Freddie are government-sponsored enterprises that buy mortgages from lenders.” – IdahoBusinessReview.com
As StateImpact reported last week, home prices and new home construction have recently begun to tick upward in Boise. Those significant indications of improvement in the local housing market have come about as the inventory of available foreclosures has declined.