Boise Real Estate Blog

Boise First-Time Homebuyers – Wait or Buy?

Several upcoming changes will soon increase the cost of buying a home.

On March 31^st, the Fed will stop buying mortgage-backed securities.

The Fed has purchased $1.25 TRILLION (yes, Martha, that’s a “T”) of MBS in a successful effort to keep mortgage interest rates low and thereby “stimulate” the economy.

(dunno about you, but I’m not feelin all that stimulated!)

No one knows for sure, but removing this “liquidity” from the mortgage market is forecast to result in mortgage interest rates rising to as high as 6% by the end of 2010.

On a $200,000 mortgage, going from a 5% to a 6% interest rate increases your monthly payment by $125, which totals a stunning $45,000 over the term of a 30-year mortgage.

But, if you only keep your home for the typical 7 years, that 1% increase in your interest rate will only cost you $10,500.

On April 30^th, the $8,000 first-time homebuyer tax credit ends.

This incredible (free money to first-time homebuyers!) program has helped thousands of Boise first-time homebuyers, with roughly 65% of all Ada County home sales occurring in the under-$200,000 price range.

On April 5^th, FHA upfront mortgage insurance will increase.

It will rise from the current 1.75% to 2.25% of the loan amount, which will increase the buyer’s closing costs by $1,000 on a $200,000 loan.

On April 5^th, FHA monthly mortgage insurance will increase.

This will also increase the borrower’s monthly payment.

The bottom line?

Waiting for “the bottom” could end up costing you dearly because your increased financing costs could easily exceed what you (might) save by waiting for a lower price.

If you’re buying a home for the long term as your personal residence, this may be as good as it gets.

Are you a serious first-time homebuyer who would like some straight talk about buying now?

Call or e-mail me and let’s talk!

I will tell you the truth and help you achieve your dream of home ownership without the usual sales talk.

February 8th, 2010 Posted in Buyer Stuff |

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Boise, Idaho Real Estate Stats – January 2010

Here’s a snapshot of January’s real estate activity for Boise, Idaho (Ada County):

Available Homes
# Available: 3,570
# Vacant: 1,918
Vacant Percent: 53.7%
Average Asking Price: $242,687
Median Asking Price: $174,900

Pending Sales
# Pending: 730
Average Asking Price: $210,287
Median Asking Price: $170,500

Closed Sales – January 2009
# Closed: 253
Average Sales Price: $223,632
Median Sales Price: $180,000

Closed Sales – January 2010
# Closed: 292
% Change: +15.4%

Average Sales Price: $200,055
% Change: -10.5%

Median Sales Price: $168,300
% Change: -6.5%

Data taken from Intermountain MLS on 2/6/10 and pertains to single-family residences on lot or acreage. Data does not include condominiums or townhomes.

February 7th, 2010 Posted in Boise Market Stats |

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Meridian, Idaho Real Estate Stats – January 2010

Here’s a snapshot of January’s real estate activity for Meridian, Idaho:

Available Homes
# Available: 983
# Vacant: 592
Vacant Percent: 60.2%
Average Asking Price: $200,223
Median Asking Price: $174,400

Pending Sales
# Pending: 213
Average Asking Price: $194,103
Median Asking Price: $172,900

Closed Sales – January 2009
# Closed: 69
Average Sales Price: $195,662
Median Sales Price: $179,699

Closed Sales – January 2010
# Closed: 100
% Change: +44.9%

Average Sales Price: $183,786
% Change: -6.1%

Median Sales Price: $171,500
% Change: -4.6%

Data taken from Intermountain MLS on 2/6/10 and pertains to single-family residences on lot or acreage. Data does not include condominiums or townhomes.

February 7th, 2010 Posted in Meridian Market Stats |

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Eagle, Idaho Real Estate Stats – January 2010

Here’s a snapshot of January’s real estate activity for Eagle, Idaho:

Available Homes
# Available: 309
# Vacant: 125
Vacant Percent: 40.5%
Average Asking Price: $464,572
Median Asking Price: $349,950

Pending Sales
# Pending: 57
Average Asking Price: $384,873
Median Asking Price: $375,000

Closed Sales – January 2009
# Closed: 20
Average Sales Price: $518,301
Median Sales Price: $392,500

Closed Sales – January 2010
# Closed: 26
% Change: +30.0%

Average Sales Price: $364,080
% Change: -29.8%

Median Sales Price: $357,000
% Change: -9.0%%

Data taken from Intermountain MLS on 2/6/10 and pertains to single-family residences on lot or acreage. Data does not include condominiums or townhomes.