Treasure Valley Homes

As a seller statistically fall is the second best time to list your home.  As we move into the winter months and the holidays, things usually slow down a little and sales decrease.  However, with the low inventory of homes on the market in our area, NOW may be the perfect time to list your home.

In Ada County in 2011 from January to October, 5492 homes sold compared to 6370 for the same period of time in 2012.  We have increased sales more than 14% year to date.  In addition to that our average home sales price has increased from $176,750 to $190,120 which is an increase of over 7%.  In 2012 every month of the year has shown an increase of number of homes sold versus the same month in 2011.

This is great news for the housing market.  It’s also great news for sellers AND with the current interest rates, the buyers are still getting more of a house for the same monthly payment as they were able to two years ago.

For many people, the question remains, “How quickly will my home be absorbed into the market if I list it right now?”  In general, Ada County is selling 400 homes a month under $200,000 with only 2 months of inventory; 150 houses a month from $200,000 to $300,000 with 2.7 months of inventory; and 87 homes a month from $300,000 to $500,000 with 4 months of inventory.

Your Realtor can help determine how quickly your home will be absorbed based on where the home is located in Ada County, what is happening in YOUR neighborhood, and pricing your home at the correct MARKET VALUE price.

So should you list your home now or in the spring?  This becomes a personal decision that you can add market statistics to so you are able make the best decision for you and your family.   We know that buyers are out looking for homes for both their primary residence and as investment property.  They want to take advantage of the low interest rates to get as much house as they can for as little interest as possible.  We know that in Ada County, inventory is low and demand is high.

Will the interest rates remain low?  Will the housing prices continue to increase?  Will you have more competition in the spring?  Will you be able to get into the house you would like if the market rises and the interest rate rises?  We would all love to have a crystal ball, but searching to understand your own motivation to sell as well as looking at current market data could lead you to the answer sooner rather than later.

With interest rates below 4% is now the right time to purchase a home?  For renters or move up buyers you should look at the numbers and see if the fit is good for you.

For example, what can you get for $100,000?  And what would your payment be?  In Meridian, Kuna and Star you could purchase a 3 to 4 bedroom, 1500 sqft (approx) home.  In Boise, it varies greatly by the area you want to be in, but you can also purchase a home of this size for $100,000.

Payment Scenario for $100,000 home:

Interest rate of 3.875% Principle and Interest payment

15 year payment                              30 year payment

7.33/$1000 = $733/mo (P&I)        4.70/$1000 = $470/mo(P&I)

Adding taxes and Insurance of approx. $150/mo

$883/mo total payment                $620/mo total payment

Most people would agree that a payment of $620/mo for a 1500 sqft home is less than what you can rent for.  Plus you get the advantage of never having your rent raised and tax advantages of being a home owner.

What if you don’t have enough money for closing costs or down payment?  You should talk to a lender about various financing options.  In Kuna and Star, you can still get a Rural Developement loan that is zero down.  You may qualify for other local neighborhood housing loans or possibly VA.  A lender can look at your situation and advise you on the best options for you.  In Meridian and Boise, FHA only requires 3.5% down.

I’ve attached a link to another article titled:  ‘Why Buy a Home’  that was written by REALTYTIMES:

For many potential homeowners NOW really could be the right time to purchase a home and lock in a fantastic interest rate for the life of your loan.

Please contact me for names of lenders that can give you the financing options for your situation.

Idaho homeowners receive a partial tax exemption on their primary dwelling and up to one acre of land.  The law exempts 50% of the assessed value from taxes.  The exemption cannot be more than the maximum home exemption value each year.

It’s important as a tax payer and a home owner to know what your homeowner exemption is.  The Idaho Tax Commission has set the new 2012 exemption amount to $83,974 reducing it from the previous exemption of $92,040 in 2011.  This is based on changes in the Idaho House Price Index calculated by the Federal Housing Finance Agency and is tied by law.  It is because of falling home prices in 2010 and part of 2011. 

Basically if your market value of your home is under $167,948 there is no change in the amount of homeowner exemption for you.  If your market value is more than that, it may be worth it to make sure the property is assessed at the true market value.  If you think the assessed value is more than the market value of your property on January 1, 2012, you can file an appeal with the county commissioners (contact the county clerk) by June 25, 2012 (fourth Monday in June). 

Ada County: 

200 West Front Street
Boise, ID 83702
Phone: (208) 287-6840
Fax: (208) 287-6849

Canyon County:

County Courthouse
Caldwell, ID 83605-3542
Phone: (208) 454-7557
Fax: (208) 454-6689

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