Meridian Idaho Home Buyers: Higher Interest Rates

Meridian Idaho Home Buyers & Higher Interest Rates!

Meridian Idaho Home

Yup, they’re already (gasp!)  up to about 5% for 30-year fixed rate loans now!

Is that the end of the world?

If you’re concerned about rising interest rates, please allow me to put things in perspective.

Plainly stated, 5% mortgage rates are not the end of the world!

Some real estate “experts” would have us believe that our real estate market is in imminent danger of collapsing due to these higher interest rates.

During my 46 years in real estate, I’ve NEVER seen a real estate market collapse with interest rates anywhere near 5%.

In 1982, 21% rates were a big problem.

Today, 5% interest rates are little more than an annoyance.

During most of my real estate career, interest rates have varied between 8% to 12% and everyone survived.

Underlying our present concern about rates is the fact that a large segment of our population has never experienced realistic interest rates.

They think 3% rates are the new normal.

3% interest rates are NOT normal!

Fact is, those 3% interest rates were artificially created by The Fed to help the national economy recover from the 2008 financial collapse.

We’re now in a very strong, growing economy that’s causing the Fed to raise interest rates to avoid higher inflation.

Consider the difference, illustrated below, between a 4.5% loan vs. a 5% loan when purchasing a $300,000 home:

  • $300,000 purchase price
  • $60,000 down payment
  • $240,000 loan (30-year, fixed rate)
  • Principal/interest payment with 4.5% interest rate = $1,216.04
  • Principal/interest payment with 5% interest rate = $1,288.37
  • Principal/interest payment difference = $72.33

For the average $300,000 home buyer, that isn’t enough to make or break the budget.

Higher prices, caused by ongoing low listing inventory, and rising building costs, are far more of a threat to buyers than 5% interest rates.

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Meridian Idaho Home Sales – September 2018

Meridian Idaho Home Sales Activity For September 2018

Meridian Idaho Home Sales

Meridian Idaho Homes For Sale

# Available: 556    Click here to view all homes for sale in Meridian, ID
Average Asking Price: $399,552
Median Asking Price: $355,740
Months’ Supply: 2.1

Meridian Idaho Pending Sales

# Pending: 436
Average Asking Price: $372,528
Median Asking Price: $349,498

Meridian Idaho Home Sales – September 2017

# Closed: 316
Average Sales Price: $290,514
Median Sales Price: $275,000

Meridian Idaho Home Sales – September 2018

# Closed: 269
% Change: -14.9%

Average Sales Price: $335,102
% Change: +15.4%

Median Sales Price: $324,900
% Change: +18.2%

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Data extracted from Intermountain MLS on 10/6/18 and pertains to Meridian Idaho single-family residences on lot or acreage.

Data does not include condominiums or townhomes.

Months’ Supply = available listings divided by average monthly closed sales for the past twelve months.

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Meridian Idaho Home Sales – August 2018

Meridian Idaho Home Sales Activity For August 2018

Meridian Idaho Home

Meridian Idaho Homes For Sale

# Available: 531    Click here to view all homes for sale in Meridian, ID
Average Asking Price: $401,835
Median Asking Price: $355,990
Months’ Supply: 2.0

Meridian Idaho Pending Sales

# Pending: 445
Average Asking Price: $360,822
Median Asking Price: $340,990

Meridian Idaho Home Sales – August 2017

# Closed: 352
Average Sales Price: $295,832
Median Sales Price: $275,987

Meridian Idaho Home Sales – August 2018

# Closed: 319
% Change: -9.4%

Average Sales Price: $358,458
% Change: +21.2%

Median Sales Price: $337,895
% Change: +22.4%

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Data extracted from Intermountain MLS on 9/8/18 and pertains to Meridian Idaho single-family residences on lot or acreage.

Data does not include condominiums or townhomes.

Months’ Supply = available listings divided by average monthly closed sales for the past twelve months.

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Renting vs. Buying A Meridian Idaho Home

There are many valid reasons for buying vs. renting a Meridian Idaho home.

Meridian Idaho Home

The following five reasons will prompt you to think about the benefits of buying that Meridian Idaho home you’ve been wanting vs. continuing to rent.

Owning Can Cost Less Than Renting

If you’re renting, you know that rents continue to rise in the Meridian ID rental market.

Homes that rented for $950 a few years ago now rent for $1,500/month or more.

I have investor clients who routinely rent their 1,800 sq. ft. homes for $1,800/month in one day.

Today’s low-interest rates often result in a home payment that’s less than the rent you’re currently paying.

If you’d like to compare home payments to your current rental expenses, give me a call at (208)938-5533, or e-mail me, and I will help you compare the cost difference between renting and owning your own home.

You Can Make It Your Own

Tired of being told where you can park, not being able to hang pictures, not have a pet, and dealing with neighbors who complain about everything you want to do?

Owning your own home allows you to live your life as you choose; not by your landlord’s rules.

Stop Paying For Your Landlord’s Home

Every time you pay your rent, your landlord pays down the loan on the home you’re living in with YOUR rent money.

Landlords become wealthy by having people like you buy homes for them by paying them rent.

Don’t be “that person” who pays for someone else’s home!

Your Rent Won’t Keep Increasing

If you finance your home with a fixed-rate loan, your principle & interest payments will be fixed for the period of the loan.

When you rent, your landlord can raise your rent every time your lease or rental agreement expires.

Wouldn’t it be nice to have your housing costs locked in so you don’t have to worry about being priced out of your home by your landlord?

No More Neglected Repairs

Many Meridian Idaho rental properties are owned by absentee owners.

And, many of those absentee owners try to manage their rental properties without hiring professional property management.

If you’re renting from an absentee landlord, there’s a good chance your landlord will ignore your requests for repairs.

When you own your own home, YOU are in charge of taking care of your home.

YOU decide what needs to be repaired, or improved, without having to get the approval of your landlord.

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Like to know how you could become a homeowner?

Becoming a homeowner isn’t as difficult as you might think.

You don’t need a huge down payment and your payment might be less than rent!

If this makes sense, give me a call at (208)938-5533  or e-mail me and let’s talk.

I’ll explain the home-buying process and answer all of your questions so you can make an informed decision about buying that Meridian Idaho home you’ve been considering!

There’s no scripted sales talk and no persuasion ~ just factual No-BS straight talk!

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Don’t Buy A Meridian Idaho Home Sight-Unseen!

Our hot real estate market is encouraging some Meridian Idaho home buyers to buy homes sight-unseen.

Meridian Idaho Home

I know because I recently worked with a very excited California buyer who found another Realtor® who told them a better story than mine.

(I always lose out to other Realtors® with better stories because I’m boring, methodical, and forthcoming about the homes I help my clients buy!)

After two weeks of advising them what to do and (mostly) what not to do, they bought a Meridian Idaho home that they had seen on the internet, sight-unseen, from another agent.

Buying sight-unseen raises all sorts of issues, including:

  • What does the home really look like ~ inside and out?
  • Is it in good condition, or is it a rental property that has been trashed by several past tenants?
  • Is the home a lipstick-on-a-pig remodel, done by amateurs who failed to get the required permits and did everything on the cheap?
  • Is it in pride-of-ownership condition, or has that fragrant cat pee in the carpet been masked by repeated applications of Febreze?
  • Is the home on, or backing to a busy street?
  • Is the home near a school that will generate more traffic?
  • Is the home near a fire station that will provide soothing siren noises in the middle of the night?
  • Will the adjoining street be widened to accommodate more traffic in the future?
  • What does the neighborhood look like?
  • Are most of the nearby homes owner-occupied, or mostly rental properties owned by absentee owners who haven’t seen them in the past two years?
  • Is the home under the flight path for the Boise airport?
  • If so, are you familiar with the approach/departure paths for the airport, depending upon weather conditions?
  • Which school district is the home located in?
  • Is the home on sewer or does it have a septic tank?
  • Does the home have city water, or does it rely upon a private well for drinking water?
  • How old are the major components of the home, including the roof, HVAC, appliances, water heater, carpet, and other items?
  • Has the home been remediated for crawlspace water or mold?
  • Have all owners signed the listing paperwork?
  • Can the seller deliver clear title at closing?
  • What are comparable homes selling for near the subject property?
  • How long has the home been on the market?
  • Why is the seller selling the home?

I could go on and on and on, but you get the idea.

Don’t let an over-stimulated Realtor® whip you into a buying frenzy and buy a Meridian Idaho home sight-unseen!

FWIW, I don’t do sight-unseen sales with my buyers.

You’ll need to see the home you buy before I will write an offer for you.

BTW – That home I mentioned above was painted glossy Royal Blue and located near a major, busy road.  I would have recommended against buying it if I had continued working with that buyer.

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