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What’s Happening in This Crazy Idaho Housing Market?

How Crazy Is the Idaho Housing Market?

Hey, Dave Edwards, Treasure Valley Dave here in Nampa, Idaho. There’s a whole bunch of crazy stuff going on in the Idaho housing market. I’ve had some questions recently, and I read constantly. I wanted to go over some things that you guys might find important today.

Newsletter Update

It’s from our friend Ashley over at Cross Country Mortgage. In her newsletter, she said:

“Benefiting from a lack of available existing homes, sales of new homes in September unexpectedly jumped 12% from August to their best level since February 2022 and were 34% higher than last year. Most homes sold were in the $150,000 to $500,000 price range. The median home price of $418,800 was 12% lower than a year ago. Builders reported a significant increase in incentives offered to help attract buyers.”

Another thing I read recently is that if you’re a seller, you will likely be a buyer as well. So, everything we’re talking about dealing with buyers applies to sellers at some point.

Real Estate Market Question from YouTube

Mike had a comment on one of our YouTube videos. He said:

“It makes sense why people are holding onto their mortgages and why the housing market is so stubborn right now because most people holding on got them when the federal interest rates were at historic lows.”

I responded to Mike with this observation: “Absolutely, Mike. If someone is in a home that works for them and has no reason to move, staying in a place with that lower interest rate is a good thing. But selling might be a reality if someone has to move to the correct size or because of a job or school change.

“If someone is waiting for rates to come down before selling and then keep in mind, they become a buyer, one thing that could come into play is that home prices could be forced down, especially as rates go up.”

So, home prices going down for a buyer is good, but rates going up for a buyer aren’t. But buying now or buying later is a wash. The bank or the seller will get that extra money, sure. However, the prices going down for a seller might not work into their plans to get the right amount of money to buy their next home. Yes, the house they’re buying might cost less, but price changes in demand are not equal.

A higher-cost home might have to have a considerable price reduction. But a standard home with more demand at this typical price range might have a tiny, if any, price reduction. We have seen lately that prices remain relatively steady while inching up slightly.

Back to Mike’s point, staying in place is good if someone doesn’t have to move or has no reason to move. But if they have to move, trying to time the market might cost them more in the long run.

Should You Sell Your Home Now?

Speaking of sellers, if you need to sell the home you have been in for years, your home value may decrease; that’s okay. But what if you bought just within the last peak, like 18-24 months ago, and now you need to sell? You may not have that wiggle room to let your price come down and grab hold of the lower price on the house you’ll buy because you have that mortgage.

Worse, if you put very little down when you got it, you don’t have any equity to play with. And so if you wait even months, the amount you owe on the house will keep you from being able to sell it and move into a different place. So there are many reasons that right now is the time to sell.

If it’s not the right time and you want to prepare for when it is the right time, we have resources that can help you with that. No, we’re not going to give you a bunch of money, but we have people who can give you some great advice to ensure you can accomplish your goals.

Thanks for coming along. When it comes time to sell a home, buy a home, or even relocate to the Treasure Valley, your Treasure Valley Dave team is your real estate expert by your side, helping you get home.

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