More Homes are Selling!

Here is a simplified version of the new tax credits. With interest rates at a historical low as well as the pricing of our inventory in Boise, now is a great time to buy. If you would like a list of foreclosures/short sales or a list of homes to look at call me at 409-7606 or email me at ablake@group-one.com.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

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October 2009 Market Statistcs

Main / Market Insight

More Activity! New contracts written (pendings) in October were 79% higher this year than last year in Ada County and 105% higher in Canyon County. It continues to be difficult to get those new contracts closed as almost half have been falling out. Despite the difficulty in getting new contracts closed, closings in October were 41% higher in Ada County than last October and 61% higher in Canyon County. New Construction in Canyon county remains down but pending transactions for new construction in Ada County increased 46% compared to last October while closings increased 37%. The median price of new construction closings in Ada County in October was $147,400, 45% below the median price of a new home which closed in 2007.

More Activity!

New contracts written (pendings) in October were 79% higher this year than last year in Ada County and 105% higher in Canyon County. It continues to be difficult to get those new contracts closed as almost half have been falling out.
Despite the difficulty in getting new contracts closed, closings in October were 41% higher in Ada County than last October and 61% higher in Canyon County.
New Construction in Canyon county remains down but pending transactions for new construction in Ada County increased 46% compared to last October while closings increased 37%. The median price of new construction closings in Ada County in October was $147,400, 45% below the median price of a new home which closed in 2007.

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Short Sales and Foreclosures are getting a lot of attention.If you have the patience to be able to go through all the ups and downs, not knowing until you close headaches, they can be a good deal.  First and foremost is to work with an experienced agent, secondly and just as important is to get a thorough home inspection.  Once a home goes into foreclosure or short sale status, the homeowners sometimes give up and don’t put the time or care into the property that they should.

A good list of foreclosures and short sales that are listed in the MLS is a good tool to have. I send out one weekly which has the price, tax value and suggested offer to the bank.

While you may have to look at a lot of properties to find the right one, be assured that you are buying these properties at bargain basement prices.  With a little elbow grease and some due diligence, you are most certain to find  a good investment.

If you would like to receive lists such as these on a weekly basis, drop me an email or call me at 409-7606.  For serious buyers, I also have a free website that I can put you on that will analyze the cash flow and the return on your investment for you.

Happy Hunting!

The recent transformation of low interest rates has put a good market for buyers into  a great buyers market.  According to the president of Idaho Central Credit Union, the rates are not only at the lowest in 37 years, it is coupled with bargain pricing, great inventory and on top of  it all the$7500 tax credit being offered by the government for first time home buyers. Some pricing in our market is at 2001 levels. With rates at 6.5% in October, it was a good market, however with rates well below 5% it is a GREAT BUYERS MARKET.  One thing to take into consideration is that the tax credit is an interest free loan, payable in portions through 2010.

If you choose to gamble on waiting this market out, you may find yourself gambling yourself right out of the market. While the bottom is definitely hard to find, some believe
with lower interest rates, buying now is not a gamble.

What most people don’t understand is the impact that interest rates can have on the monthly costs of home ownership. For example, a ten percent drop in home prices is nullified
by an increase of one percentage point in interest rates
on a conventional thirty year mortgage.

Interest rates are at a historic low , with conventional thirty year rates at 4.75% and investor rates at 5.5%. With prices as low as they are, you will find a good bargain if not great in almost all markets. Make surethat you do all your homework and look at the highsand lows in the area, area schools and amenities as well as pricing trends in the last month. All these put together
will show you whether or not your home is a good buy.

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Alison Blake a top producing Realtor, has been providing Boise area real estate services and information for Boise Real Estate and the surroundi ng Boise Idaho communities for the past five years. Alison is pleased to be associated with the prestigious firm of Group One which hires only t he top real estate agents in Boise, Idaho. Alison has a love of Real Estate, architecture and prides herself in matching people with homes. Alis on is experienced in all facets of residential Real Estate and works closely with relocation companies to help people to relocate to the Boise, Idaho area.