Hey everyone Dave Edwards here. I recently had the opportunity to meet with some people that are currently renting an apartment. We talked about how they could go from renting to buying in Idaho. If you want to know more about buying in Idaho then keep reading!
Volatility of the Idaho Housing Market
One of the big things that dictates what house prices are and what monthly payments are is interest rates. On the one hand we’ve got data showing that private payroll is stronger than expected. On the other hand, spooked investors raise the interest rates to slow down the economy and the economy is not slowing down in the way that they thought. This caused the Federal Reserve to continue its aggressive rate hikes. Unemployment fell but wages didn’t go up. Which is probably making the Federal Reserve a little happy. Slow wage growth is typically an indicator of pressure waning. Lenders have already pre-programmed their prices, so, if there’s another increase by the Feds we won’t see a whole big change in rates.
There Will Be More Inventory
Here in the Boise area we already have tons of inventory for brand new homes. Some of the big Builders like CBH and Hubble just built and built for so long that now as we’re behind the power curve, they have too much inventory. CBH has about five hundred extra homes available right now.
House Prices Are Up and There are More Seller Concessions
Boise is one of the four Metro areas where prices have come down since December. A year ago it was like it was a bidding war. People weren’t even requesting a home inspection or anything. Now, you could go in and ask sellers to help pay down your closing costs, make repairs, and things like that. When it comes to new builders like CBH, we can definitely go in and ask them for help with their closing costs or maybe putting blinds in the house because. There is still a shortage of starter homes which are easier to get into because of the price.
Should you rent or buy?
Don’t base your decision solely on interest rates
There’s a lot more that goes into a house payment. It could be your PMI or it could be in your initial financing costs.
Buy utility rent luxury
For example, own the Honda and rent the Ferrari. Don’t let your house payment exceed 40% of your income. Your house is supposed to be a blessing not a curse. Don’t stretch your budget too much to get into the perfect house because at the end of the day it probably won’t be the perfect house.
Canyon County home prices actually had a decline of seven percent December over December. It’s not that the crash was happening, but because prices had gone up just like they were attached to a rocket.
You’ve probably seen the statistics that show the wealth of homeowners versus renters. Homeowners have about 85% more wealth than renters and they get that because of the equity they build in their house and they know the first house isn’t their forever house and then they buy another one. Your house payment is always going to stay the same throughout the entire length of the loan, unless you have a buy down program.
There’s a lot more that we talk about during the Renting to Buying in Idaho Seminar which you can find by watching the video above!
If you’re thinking about Idaho, maybe it’s a place that you want to check out because you’ve heard a lot of good things about it give me a call or send a text to 208-860-2004 or email our team at email@example.com we’ve all moved here from someplace else and we’re all so absolutely glad that we did.