In a time when nerves are running high and the future of your investments feels particularly uncertain, it's not uncommon to hear our clients say, "We're not going to buy right now. We're waiting to see what the market does."

An excellent post at Realtor.com explains why waiting is not a good idea. Some highlights:

High inventory. "There are currently 3.75 million homes for sale. Inventories in recent months have been at record levels, offering consumers the greatest choice in decades.

However, inventory levels are falling, and the selection of homes will become limited once again."

Low interest rates. "At 6.4 percent, the average 30-year fixed rate mortgage rate remains near 40-year lows. This is more than an entire percentage point below 2000 levels. For a $250,000 loan, a drop from 7.5 percent to 6.5 percent means an annual savings of $2,000.

Home appreciation. "The average home value increased by 88 percent over the last ten years. In the decade to come, the number of US households is expected to increase by 15 percent, which means housing will stay in high demand."

The article goes on to say that conditions, while perfect now, are "likely to change next year as sales pick up, prices gain traction, and conditions improve for sellers."

In the Boise, Idaho area, this is particularly true. We expect to see the market become very brisk in the spring. In the meantime, sellers are motivated.

Now. What exactly are you waiting for?

Labels: News, Real Estate

The Office of Federal Housing Enterprise Oversight (say that five times fast) last week released its quarterly House Price Index.

The sky is not falling.

Home prices were 7.73% higher in the third quarter of 2006 than they were in 2005. However, appreciation for this quarter was just .86% (or an annualized rate of 3.45%), indicating a slowdown. For example, the second quarter showed appreciation rates at 1.3% and an annualized rate of 5.1%. The report calls this "evidence that the long-forecasted national deceleration in house prices is occurring."

Idaho is the exception.

According to the press release, "Idaho now tops all states with the highest four-quarter appreciation rate with prices 17.5% higher in the third quarter of 2006 than they were a year earlier." Click here for the full report. (H/T Higlands County Real Estate.)

Are you on our mailing list? We've been providing regular market updates for months--encouraging investors to move quickly and sellers not to panic. Contact us so we can add you to the list.

Happy House Hunting.

Labels: Home Appreciation, Home Values, Idaho, Idaho Statistics, Real Estate, Real Estate Trends

Will you be ready?

Real Estate Investors (new and existing): The numbers in the Boise area are working again! Let us help you evaluate your portfolio and start shopping for your next rental or “flip” property.

Sellers: This is consistent with the message we have been delivering for the last four months. Homes are still selling, on the average, for 95% of asking price and up. Yes, inventory is higher than we’re accustomed to in the Boise area, but we work extra hard to market your home. Let us help you price your home correctly.

Buyers: Now, before the market heats back up in the spring, is a great time to buy. Sellers are motivated and there are plenty of choices. Log onto our website to get valuable buyer tips, search available homes and properties, and get answers to your FAQs.

Not satisfied? We have a comprehensive market update for the Boise, Kuna, Meridian and Eagle/Star areas. For example, if you have a home in the $200,000 to $249,900 range, expect it to be on the market for at least 90 days. Wondering how your MLS area compares to your neighbors? We've got it all. Educate yourself so you can make good choices in a fluctuating market.

Contact us.