Local Market Conditions

4 Things to Know About the Current Shift. Protect Your ASSests

We know that real estate is cyclical. The up and down of real estate is somewhat predictable. The crash of 2007-2008 was on track with the trend but far more devastating than could have been anticipated. While many people lost their homes, retirement and loads of cash, we all gained some crucial knowledge. Some of them being, don't get into extreme amounts of debt (even when times are good), when the market crashed, there is opportunity (flipping, auctions and foreclosures were excellent opportunities for the investor with cash.) and third, listen to your gut. 

The crash created low inventory because apprehensive home owners were and are hanging onto their houses longer before deciding to sell. This has created a shortage of inventory around the country. Locally in Boise, Idaho, we have had historically low inventory for the past three years. So how can we have historically low inventory and have a market shift? Here are 4 things to know.

  1. MORTGAGE RATES The Feds have said they will raise rates for the fourth time this year! This means that buyers qualify for less home. The amount a buyer can borrow is lower because a higher interest rate raises the monthly payment. Qualifying debt to income levels don't change when rates change. The adjustment is made in what the buyer can afford and at a higher interest rate means a lower priced home. This means that the buyer will have to come to the closing table with more cash down to compensate or home prices have to adjust to attract the buyer.
  2. HOME PRICES DROPPING In the past month, locally, we are seeing a lot of price drops. This happens seasonally but these price drops are drastic after a slow August and September. Buyers just aren't looking or making offers on properties at the same pace as the winter, spring and summer of 2018. This slow down along with interest rate increases means the market corrects...

Frustrated Buyers


The excitement of buying a home can be a pivotal moment.  The decision was made...it's time to move! You've gone throught the process of getting pre qualified.  Seemingly mountains of documents that your lender has asked for, to finally be ready to make an offer on your dream property. You have seen properties come and go. Your Realtor said you must be pre qualified first before you could make any offers.  She also said you needed to have your house on the market and it MUST be pending for you to make an offer.  Done, done and done!  You are READY!

You look at the few homes on the market and finally find "the one".  It is perfect, you make that big decision to make an offer.  You think it's a pretty great offer. You even included a picture and a nice letter for extra persuasion.  The escalastion clause your Realtor suggested was brilliant.  You think it is fool proof...the houe is pretty much yours in your mind.  

Then you get that call...you lost the house to a all cash offer. Or a buyer that outbid you. How can this happen? There is nothing else on the market that you even liked! The rage builds. The injustice! You sleep on it and realize, these things happen.  Then it happens again and again. Before you finally won the bid on "the one" house, you are exhausted and frustrated. 

This is a typical scenario for buyers in the Treasure Valley right now. The inventory is steadily decresing. Buyers are becoming ftrustrated with the quality of homes available and the emotional roller coaster of putting multiple offers in on houses before winning the bid. So what can we do as buyers, sellers and Realtors to ease the frustration. In addition to being pre qualified and having your home pending or sold, I have three suggestions. If these don't satisfy you...let's talk about...


Spring buying season starts the day after Christmas in Boise, Idaho.  Going into 2018 is proving to be an exciting time to buy and sell!  How can that be you ask?  Let me explain.

If you plan to finance the purchase of your new home you may be interested to know a few things. With interest rates still historicall low, buying a home with rates under 5% means you can buy more house with your money.  When rates go up, that means your ability to buy a higher priced home goes down.  To get mathmatical on you, as an example at a 4.5% FHA loan with a minimum of $7,000 down for a $200,000 home, your payment (principal, interest and mortgage insurance) would be about $1350.  Depending on your cirucumstance (credit, debts, etc) you would need to make a minimum of $55,000 a year to qualify.  As rates are expected to go up this year as the economy has improved let me give you another scenario.  At a 5% FHA insterest rate, you would need to put a minimum of $10,000 down for a $200,000 home and your payment would be around $1400 a month (principle, interest and mortgage insurance).  Minimum yearly income would go up to about $60,000 depending on your situation. Just a rate incarease of 1/2 a percent woudl increase your minumum down payment by $3000, increase you monthly payment and increase your requirement for yearly income.  This is why it is a buyer market too.  Even with low inventory, it is a GREAT time to buy becaue you can afford more house NOW.  As a disclaimer, check with your lender to verify interest rate and numbers for your specific situation.

You will need an aggresive agent that can win multiple offer situations for you.  That's why you need me.  I have the skills and stategy to get the house that catches your eye.  I am your agent!

So why is it a seller market?  We have EXTREMELY low inventory and it has been steadily DECREASING over the past three years.  In some areas...

Boise - Time Magazine Says 'Getting It Right'

Boise - Time Magazine Says 'Getting It Right'
The City of Trees has made more than its fair share of top ten lists in various national publications.
However, the most recent issue of Time includes an impressive addition for Idaho's capital city.
Under the magazine's "Solutions for America" header, Time ranked Boise no. 1 out of 9 cities for what it called "getting it right."
The criteria for cities to make the list includes a thriving economy, a booming cultural scene, quality health care, and a growing university. See the article here

Article Courtesey of ACAR


January Ada County Market Report: This Will Take the Chill Off

January Ada County Market Report: This Will Take the Chill Off

Single family home sales in January 2014 were 406 in Ada County, an increase of 10% compared to January 2013.  January sales were strong, and, when linked with December gives us two months in a row or double digit year-over-year increases.

Dollar volume for January was up 23% to $96 million.

Days on Market for January were 70.  Yep. You read that right…70. In December we were at 59. In January 2013, Days on Market was 53. Is this a one time “blip” or something more. Check back in March.

New homes sold in January totaled 99; up 27% from last year.

Existing home sales were 307; up 6%.

Historically, January sales decline from December by an average of 27%. January 2014 posted a 29% increase over December 2013.

Of the total sales in January, 12% were distressed; up 2% from last month. In January 2013, 25% of sales were distressed.

For the month of January, REO sales (70% of Distressed; 34 total sales) exceeded Short Sales (30% of Distressed; 17 total sales).

Pending sales at the end of January were 813; down 15% from January 2013.

Of Pending sales in distress (14%), there was a decrease in the number of Short Sales (from 57% to 56% of activity; 31 total sales) and a increase in REO sales (from 43% to 44%; 25 total sales).

January median home price was $208,190; up 12% from January 2013.

New Homes median price for January was $267,000; up 11% from January 2013. For Existing homes the increase is 12% to $189,900.

The number of houses available for sale at the end of January...

Rates Still Good Buy Now

The holidays are over and now you can think about buying a house!  Many first time home buyers think that means looking at homes.  Well, yes and no.  The first step is actually to talk to your bank or let me recommend a few of my team members who are loan officers that can prequalify you.  Knowing what you can afford will save you time and help me focus on what type of home we should be looking at.  After you are prequalified you have the ammo to put an offer in on a home you like.  Getting your offer accepted is more likely with a prequalification letter.

Rates are still low and there are several loan programs available.  Gabe Crum at Idaho Central Credit Union recently told me about an arm they have.  Here are the details; "Our fantastic ARM option has changed a bit for the New Year and is an incredible option for the home buyer that is planning to be in their new home for less than 10 years.  This product is fixed at 2.95% for 5 years and will then only adjust once every 5 years at a maximum adjustment of 2% per 5-year period and a lifetime maximum adjustment of 5%.  After nine years of having this loan, the worst rate the borrower could have is 4.95%.  This product only requires a 3% down payment, does not have an origination charge, and features lower PMI rates because we retain the loan at ICCU."  Wow!  What a great product!  What a great time to buy your new home.


Early Bird Gets the House

     555 homes sold in Ada County in March 2013 showing an increase of 4.3% over the same time last year.  Average days on the market was only 67 days!  Will this motivate more homeowners to sell their homes?  Median home price was up a whopping 22% for existing homes. The local market is improving with each passing month.  With all these statistics supporting the fact that it is a great time to sell your home.

     Distressed home sales, those that are bank owned and shorts sales, made up only 18% of total sales in March 2013.  That is down 5% from March 2012.  We are seeing less percentage of distressed sales than previous years.  With those killer deals becoming fewer and far between, property owners could potentially sell their homes faster when they are not competing with really low priced homes.

     Inventory is low and the market is bouncing back but not at crazy, expensive price tags that we saw in 2007.  The good deals are there and the early bird gets the worm.  Get the best realtor, Kristen Pond!  My services are free for buyers.  I can look up any home on the market and, customize searches to get you what you want and save time.  Now let’s go catch your house before someone else gets it first!