With all the talk about escalating gas and grocery prices consumers have had to learn to tighten their belts and budget their money they were not acustomed to being concerned with in the past. Many families have made some tough decisions to deal with the changing economic landscape. When our backs are against the walls it is amazing what we can do. It is amazing what we can do when our backs are against the wall.
I have certain clients that have purchased two homes from me over the past 28 years I have been in the real estate business. What is really interesting about these clients is that they have paid off both homes they purchased from me in 7 years each. When I asked them how they did this they said they simply added an additional $300-400 to each monthly payment and took half of thier income tax return each year and applied it to thier mortgage.
Did you know that if your take a $200,000 mortgage financed at 6 1/2% for 30 years the monthly payment would be $1,264.14. If you apply an additional $450 to each monthly payment you would pay off that same loan in 15 1/2 years. If you added an additional $1,000 to $1,500 each year from your tax returns you would accomplish what my clients did.
You say you don't have an extra $450 per month? I think this is because a lot of homebuyers tend to purchase homes that are more than they need and it is a struggle to make the monthly obligations.
What I am proposing is that everyone lower their sights and buy a more conservative home. It is amazing what our grandparents and parents lived in and made a go of it. It seems like the the attitude of "competing with the Jones' next door" has gotten out of hand over the past 20 plus years. I have seen more couples buy homes that are what they want yearn for, rather than being what they need.
With the Idaho Real Estate market being what it is, there are some great buys available that we have not seen in years. My proposal is that you buy one of these great Idaho Short Sales or Idaho Foreclosures and obtain a mortgage that is well within your means of making each month. Do what my clients did and you will be amazed at your accomplishment. Please don't make the mistake of refinancing your home every few years like many do. Simply stick to your plan of paying off your current mortage as quickly as you can.
You will feel great when you make that last mortgage payment and your family will have the security of knowing how much extra money is available each month now that your home is free and clear. This isn't a popular theory with many because we are supposed to be good "consumers" always refinancing our homes and buying the next boat, harley or some other toy. Not only will you feel good about doing this but you are teaching your kids a valuable lesson regarding money management
Begin your Idaho Real Estate search here
Lock mortgage rates now if you can
For the past 12 months the Federal Reserve was aggressively lowering the discount rate in an attempt to stimulate the economy. When the Federal Reserve lowers the discount rate mortage rates normally rise. The reason this happens is that the Discount Rate is the rate that banks borrow money at and is not a reflection of mortgage rates. When banks borrow money at a lower rate they pass this on to consumers via personal loans, credit cards, etc. The bond market views this as fuel for inflation and therefore mortgage rates typically rise in reaction.
It has appeared for some time now that the Federal Reserve is pretty much done with lowering the discount rate which should be good for mortage rates if the fear of inflation from other factors was not looming. I have felt for the past few weeks that we should have seen lower mortgage rates and my reasoning was that 1) The Federal Reserve is done lowering the discount rate, 2) The high rate of foreclosures and short sales across the country is a reflection of how bad the real estate market is across the country and 3) With gas and commodity prices skyrocketing consumers would be spending less and less on retail items.
That would have been good but just recently the commerce department said May retail sales rose 1 percent in a reflection of the effect of rebate checks. Even though there is a glut of homes in most parts of the country there are areas in Texas, Washington State and North Carolina that have not been affected by the subprime fallout.
Just three weeks ago Bank Rate reported the 30 year mortage rate was sitting at 5.75% This rate as of Friday the 13th of June, 2008 the rate was sitting at 6.29% for the same 30 year mortgage. It seems that any sign of inflation, as small as it may be is causing fear in the bond market causing mortgage rates to rise.
Yes folks, any bad economic news is good for mortgage rates in general. Anytime the economic news is positive, ie; retail sales, durable goods orders, automobile sales, consumer spending, etc. are strong we will see mortgage rates rise.
There is just enough feeling in the market that the economy is showing signs of life and as long as that is the case we will see mortgage rates continuing to rise. In my opinion, these higher rates have been offset by falling home prices. Idaho Real Estate can be purchased in Southwest Idaho for as much as $20 per square foot less than they were selling for just 3 years ago. In one case I recently sold a wonderful new custom home for $87/foot. This home would have easily sold for $115/foot just three years ago.
We don't know how long home prices will stay low so my advice is that if you find one of the thousands of great deals out there in the housing market, that you take advantage of it lock in your home price and mortgage as well.
Start your Idaho Home Search here before home prices start rising as well.
Buying your next Idaho home should be a wonderful experience. It does not have to be a stressful and anxious experience. Follow these tips and you will be well on your way to making your next home experience one you will remember.
1) You have heard the term location, location, location! Do some homework before you go looking for your new home. Even if it meets all of your requirements is the home located in an area that is convenient to schools, shopping, interstate and is the area positioned to grow? I heard on the radio recently that Starbucks does a lot of homework before it decides to go into an area. When it goes into an area Starbucks has decided that area is poised to grow based on certain factors. This does not mean you need to be near a Starbucks but a Professional Realtor can help you analize areas you are considering similar to the way Starbucks analyzes areas.
2) You just are not buying a home, you are buying an area. So you have found the perfect home for your family, what next? Stand at the front door and look around you in every direction. Get in your car and drive around the entire area within a square mile or so. What do you see? Is there anything that concerns you? Too many buyers focus on just the home but the area and what surrounds it can have a lot to do with the growth of your area and the resale of your home.
3) Advice is good but who's is it? I can't tell you how many buyers I have worked with over the years that found the perfect home for them and then they asked the advice of parents or their siblings or some other friends that gave them poor advice. Please remember that very few parents, siblings or other friends are professionals when it comes to buying a home. They act more on emotion and they almost feel like they have to find something wrong with the home or the area to gain your respect or to feel they have contributed. If you have done your homework and worked with a Professional Realtor there is a lot of reason to have faith in your decision.
4) If you have young children have you searched the area for sexual offenders? How would you feel if you have two young girls and you find out after closing the man living next door is a registered sexual offender? Doing your homework now will make you sleep better at night.
5) Let's make a LOW BALL OFFER! I have heard this more in the past 6 months than I have heard it the past 28 years! With all the talk about foreclosures and short sales the media has scared a lot of buyers and told you to not buy now and if you do, make a low, low offer. This can backfire on you. Sellers are human beings complete with emotions. If you make a very low offer it is likely the sellers will be offended. I have seen sellers that received real low ball offers and refused to negotiate or submit a counter offer. On the other hand I have seen buyers make a "reasonable" offer and get a good deal on a home. Many homes are already priced at rock bottom prices. Making LOW BALL offers way below these already low prices could backfire on you. Again, a professional Realtor can do an analysis for you and you can see where a particular home is priced comparable to other homes that have sold and are pending.
6) That's O.K. "I will buy the home in as is condition". Wrong! I have heard too many buyers tell me they are O.K. with a home they have made an offer on and don't need a professional home inspection completed. The most common problems that can become major problems are often unseen to the average person. I have seen furnaces that are on their last breath. I have also seen mold in crawl areas of newer homes. The $250-$350 you will spend on a private home inspection is the best money you will spend on your new home. Not only will the inspection disclose flaws of the home, a good inspector will give you sound written advice on maintaining your home for the years to come. Also, please remember that relatives and friends have great intentions but they are not professional inspectors and could end up costing you thousands if you allow them to do your inspection.
7) Let's go buy that new furniture now that we have a home in escrow! Wait a minute! If you have made an offer on a home and closing is pending the last thing you want to do is go create any new debt before closing. Remember, your mortgage lender has approved you based on your current income/debt ratio among other factors. If you go out and splurge on new furniture or a new car you not only change your income/debt ratios, you could shoot yourself in the foot by all of a sudden not qualifying for that new home.
The home buying process can be a painless and wonderful experience. Follow these tips and you will be well on your way on having the home of your dreams.
Get started on your home search by going to Idaho Home Search
With all the talk about Idaho Foreclosures we as Realtors are being bombarding by buyers looking for the "Best Deal" and want to buy one of those foreclosures everyone is talking about. Before you run out and buy one of these there are some things you need to know. Hopefully these tips will help you in negotiating for and purchasing a foreclosure.
First of all there are two basic kinds of Idaho foreclosures. The first kind of foreclosures are those that the bank which made the loan on the subject home already owns the home and is marketing it. You can apply for financing on these properties just like you would do with any other home. Many of these homes need some kind of repair. The repairs can range anywhere from cosmetic to some major electrical, plumbing or structural. When you purchase one of these foreclusures typically listed by local Realtors you are wise to take advantage of your right to conduct a home inspectoin. The bank which owns the property will likely have you sign an addendum that says they will do no repairs but you still have the right to do an inspection and cancel your contract if many flaws are found. Many buyers waive their right to do an inspection which in my opinion is a big mistake. Major repairs could end up costing you more that the home is worth. Be careful and complete your inspections in a timely manner. Speaking of inspecitons. Do not do these yourself or hire your buddy. Please hire someone who has the property credentials to conduct these inspections. Here is a list of my preferred vendors.
The other kind of foreclosures are the kind that are being auctioned off in the form of a "Trustee Auction". These auctions are typically conducted by title companies where one or more bidders can bid on a specific property. The bank which had the loan on the property will typically submit a "minimum bid" or basically their own bid at which they will buy the property back. The individual conducting the auction will read the banks minimum bid and any bidder must bid above this amount. The winning bid MUST PROVIDE PAYMENT IN THE FORM OF A CASHIERS CHECK AT THE TIME OF THE SALE. In addition, the winner bidder will receive a "Trustees Deed" which warrants nothing. Your are basically gambling that the home will be in reasonably good condition and that you can cover any unpaid real property taxes or irrigation bills due. It is imperative that you talk to a Realtor that is a Foreclosure Specialist and has experience in dealing with these foreclosure sales. Doing so will save you a mistake that could end up costing you more than you ever bargained for.
Buying a foreclosure can be a great experience if you know what you are doing. Good luck to you and yours.
George
I have been pondering lately about our generation. Many events have taken place over the past 2-3 years that has changed the landscape of this country as we have known it. I started my real estate career in 1980 and now over 28 plus years later I look back on my life and think about those that influenced me the most. These are people that left a big impression on me and changed my life in a positive way. Several touched my life but when I think about the current economy and the current state of econimic affairs one man's name comes to mind, Myron Stahl. Myron came to me as a referral in the mid 1980's and was a hard working self made millionaire. You see Myron lived through the great depression and told me stories of not knowing if they (his family) and he would have food on the table the following day. Food, gas and other commodities were very scarce and times were very hard.
Myron talked about the number of relatives and friends with several chidren that lived on meager amounts of food and general necessities just to survive. Myron, who is now deceased told me great stories about hard physical work and personal sacrifices made by him and his siblings and parents. All of the hard work and discipline paid big dividends for Myron. He invested his hard earned money wisely and became a very, very wealthy and respected man. I sold Myron some bare land west of Caldwell between Dorman Ave. and Farmway Rd. that is known as the Stahlridge Subdivision, one of the nicest developments in Caldwell. I also sold Myron a gravel pit that is located north of Beacon Light Road off of Highway 55 in Boise. Myron purchased this gravel pit when it was in bankruptcy and it has been a thriving gravel pit that has generated hundreds of thousands of dollars for Myron's estate.
Even though Myron was a millionaire he was not a worldly or materialistic man. When you met Myron and spoke to him for just a little while you could feel and hear the peace, tranquility and wisdom of this great man. Myron once told me he would not have been half the man he was if he had not lived through the great depression. He said he worked as hard as he did so his family would have it better than he did and he certainly accomplished that and more.
Tom Brokaw calls my fathers generation "The Greatest Generation". My father, like Myron had very little growing up and had purchased and paid for 40 acres of farmland in Wyoming by the time he was 16 years of age. He came to Idaho in his early 20's and was told he would never accomplish his lifelong dream of becoming a farmer. Dad not only became a very successful farmer but learned to use a welder and cutting torch as good as anyone I have ever seen. He went on to overhaul his own tractors and trucks and built his own potato and beet/grain beds for his trucks. He built truck beds and a gooseneck trailer that people marveled at.
I'm sure that during Myron's days as a youth that many thought things could not get any worse. When you don't honestly know if you are going to eat the following day it is hard to keep your faith. My Dad came to Idaho with very little money but a BIG HEART and a strong desire to succeed with the limited third grade education he had. If Dad had not had a lot of the adversities in his life, I doubt if he would have accomplished everything he did. I credit all of my hard work, determination and ambition to my dad and the many days of hard physical work my sisters and I did on the family farm led to our hard work ethic.
I hear many people complaining about the high cost of gasoline and the high price of groceries and other commodities. There is no doubt that our society became accustomed to the inexpensive gasoline and groceries for many, many years. To have to suddently deal with skyrocketing prices for many goods and services almost overnight it is easy to understand the frustration.
I believe we will rise above these trying times as a country just as we have risen above every other challenge we have faced. We can complain about how bad things are or we can do like Myron and my Father did and simply work hard with a determination and faith that something good will come to those who persevere. We can become part of a generation that rises above the current trials and tribulations and we can do it while facing record high gasoline and commodity prices. After all, this is nothing close to the great depression.
I want great things said about this generation
After months of searching for a location from Boise to Caldwell AFI Packaging has selected a location west of Caldwell Idaho just east of the town of Greenleaf as the location for a new start-up company. The new company managed by Drew Dalgetty will consist of approxiately 27,000 square feet and employ approximately 15 employees when complete. The company will produce on site allergen free cake and bread mixes plus other allergen free products. A contract for the product has already been secured and there is interest from other companies including some franchises.
Mike Mussell, owner of Mussell Construction is purchasing the site for the new business and completing an existing structure which is pictured. Drew Dalgetty states the company, AFI Packaging is working and partnering with another midwestern company on the project and states the national interest for the product is strong. Dalgetty looked at locations in Boise and Nampa but chose the site west of Caldwell due to it's easy access to I-84 and the low comparable traffic count for the site. This was important because the site will see daily deliveries and pickups from large semi trucks.
I was fortunate to work with Mike and Drew and assisted them in locating the site they chose west of Caldwell. I am elated that the site in Caldwell was chosen over all the other locations that were considered. Construction will commence towards the end of June, 2008 and completion is estimated to be 90 days after construction begins. This is a positive addition to the city of Caldwell which has made recent news for it's proactive attitude which has included the recently completed Indian Creek Project and the Franklin Road Interchange which is scheduled to be completed the fall of 2008.
Treasure Valley Real Estate Services
Idaho Real Estate buyers have been confused because every time they call me about buying Idaho Real Estate in Idaho I have to tell them that mortage rates have risen. They could not understand why mortgage rates were increasing when they heard on the news that the Federal Reserve Board has been aggressively lowering the discount rate which has been on the news for months.
The discount rate is the rate member banks may borrow short term funds from the Federal Reserve Board. In other words, the Federal Reserve offers these funds to member banks in an attempt to stimulate the economy. It is designed to encourage member banks to offer consumer products and services at more competetive rates to encourage consumers to spend money. Banks can lower rates on credit cards and other consumer type loans when they can borrow money at lower rates.
The downside to this is that lower rates passed on to consumers can fuel spending and therefore inflation fears if it works like it is designed to. When consumer spending rises fueling inflation, mortgage rates rise which is exactly what has happened these past few months.
When the economy is robust and inflation is a concern mortage rates will rise in an attempt to curb inflation. When the ecomony is sluggish as it has been the past few months bonds (which affect mortgage rates) will rise and mortgage rates will fall in an attempt to encourage economic growth.
So you ask, why have mortgage rates not dropped since the economy has been sluggish? The reason being is that the Federal Reserve Board has been on an aggressive patern of lowering the discount rate which economists believed would help the economy and fuel inflation which just has not happened. The economy remains sluggish in spite of the efforts of the Federal Reserve Board.
It appears now that the Federal Reserve Board is close to ending it's aggressive posture of lowering the discount rate mortage rates will finally start coming down, especially if the economy remains sluggish. I have said now for months that that 30 year mortgages must reach 5% or below to make a real positive difference and deal with the glut of homes in most parts of the country.
Today, the 6th day of May, 2008 Bank Rate quoted 5.78% on 30 year mortgages compared to a quote of 5.87% a week ago. If mortage rates continue to fall and fall below the magical 5% rate I have mentioned I clearly expect the housing market to be revived in many parts of the country. Combine low housing prices caused by record short sales and foreclosures with incredible sub 5% mortgage rates and this national housing market could rebound.
If you see mortage rates continue to fall don't wait. Go to Idaho Real Estate Search to start your home search and find the the perfect home for you and your family.
Parents and grandparents please, please read this carefully. I have written about this in the past and advised many indivuduals. I think it is time to write about this again. Those I mentioned this to a few years ago and put the idea to practice are well on their way to funding a wonderful education for their children or grandchildren.
The timing for this idea has never been better and getting better every day. What I am talking about is an idea I heard about a few years ago. It is very simple: Buy a home when your child or grandchild is born or up to 2 years of age and pay it off in 15 years by putting it on a 15 year mortgage. Rent the home out and 15 plus years later deed the home over to your child or grandchild. The child can then continue to rent out a free and clear home to fund their education or sell the home and have a sizeable amout of money to fund a great education at just about any college or university in the country.
The home becomes a tax write-off for you and since your child or grandchild is in a much lower tax bracket, the tax consequence is minimal for them. The reason I say timing has never been better to implement this idea is because of the high number of Idaho Short Sales and Idaho Foreclosures. In many parts of the country just like Idaho one can realistically purchase a home at 70, 80 or 90 percent of real market value.
Look at a real estate value graph that tracks real estate values over time and you can see there are always corrections and plateaus but real estate always goes up in value over a 10, 15 and 20 year time frame and has never failed to do so. It is very feasable that if this Idaho Real Estate market turns around in the next year or two Idaho Real Estate values could begin appreciating rapidly. It is very possible that if you purchased a home today you could see the property double or triple in value in 15 years.
Most Idaho Foreclosures and Idaho Short Sales can be found at Southwest Idaho Real Estate Search. You can give your child or grandchild a lot of things but they will never forget the quality college education you made possible for them.
I have been listening to the media regarding real estate since my career started in 1980 and what I have observed is very interesting. Some of the most successful real estate investors purchased properties in every cycle of the real estate market and were never concerned about what the media said to do or not do. This is why they are so successful.
I know you may not be a real estate investor and all you want is a home for you and your family. What I can tell you is that the real estate market in the Boise Valley changed overnight in early 2005. When I say overnight, I mean overnight. I woke up one morning and we Realtors were receiving multiple offers on all our listings by noon after just putting up real estate signs that same morning.
Just as quickly as the market changed in early 2005 the same thing happened in late 2006. All of a sudden homes were taking longer to sell and many were wondering what happened. Fast forward to the summer of 2007 and there was a serious slow down in the real estate market. Now in 2008 we have seen a record number of foreclosures across the country with tens of thousands of homeowners loosing their homes to the bank.
We are now well into the 2nd year of foreclosures and many sellers that are competing against these foreclosures have been offering not only reduced prices but incentives such as paying for closing costs, paid trips, etc. to get you interested in their homes. The selection of homes is amazing and the amount of great buys in homes is unprecedented in my lifetime.
Know anyone in your lifetime that kept waiting for a great deal on a car, clothes, or some other item and their procrastination caused them to loose the opportunity to buy what they wanted? I see the same thing happening in this real estate market in Southwest Idaho. There are many buyers that are telling us Realtors that news reports and so called "experts" are telling them to wait and buy a home because values could drop further.
Just as the market changed rapidly in early 2005 and changed again in late 2006, it could easily change again and if certain factors are in place those that choose to listen to the media could loose the opportunity to buy the home they want for their family. There has always been cycles in real estate and there always will be. Home values will rise and home values will go down. One thing for sure is that the value of homes has always gone up over the long haul. Look at a chart of home values over the past 30, 40 or 50 years and you will see some corrections in real estate values but the trend is always on an upward trend.
I guarantee you that if you go looking for a great deal in real estate in the Treasure Valley you will find one. I also guarantee you that if you make a smart real estate purchase today it is very unlikely you will be disappointed 5,10 or 15 years from now and you will have seen a handsome appreciation. Even if your home appreciates very little over the next 15 years, was seeing a strong appreciation in your home the most important thing in your life or was the most important thing in your life having a house you and your family can call "Home"?
To get started on your real estate search go to Treasure Valley Home Search
Over the years the internet has caused more and more people to use the world wide web to search for homes. Over the past several years print advertising and open houses just have not worked the way they have in the past. In fact open houses the past 2-3 years have been disasters with either no one showing up or just a bored neighbor visiting at best. You see with "Virtual Tours" available on the internet a visitor can almost walk through a home without leaving the comfort of their home.
One of my current sellers asked me last weekend if she could borrow my open house signs. It turns out the development she lives was having a "neighborhood yard sale" with many residents participating in yard sales at the same time on Saturday. My seller put out the open house signs early that morning and I did not expect the report I was given by my seller the following Monday morning. My seller said ten couples came through and 2 or 3 couples showed serious interest in the home! It has been a good 5-6 years the last time I heard of that kind of traffic at an open house!
I recalled reading a blog on Active Rain where one member in Colorado had very successful open houses by having a community yard sale with a new twist. The neighborhood agreed to donate a percentage of their profits to charity. They then contacted a popular radio station to broadcast the event. You can imagine the traffic this event brought in! The Realtor reported more than 30+ people through each of the three open houses they had that day.
This has all changed my mind about how I view open houses. The next time you are considering an open house gather the neighborhood troops and you just may generate some incredible traffic!
Happy Open House! 
In March of 2008 Macy's National headquarters announced it would be signing a new 5-year contract to keep it's store at the Karcher Mall in Nampa Idaho. The reason this is news worthy is that in light of the fact that only last year Macy's headquarters announced it would be closing stores across the country due to non performance.
The Bon Marche which was the precursor to Macy's was one of the first major anchor stores to locate in the Karcher Mall in 1973. The announcement by Macy's a year ago to close stores across the country had many located residents and business leaders concerned that Macy's would be leaving Karcher Mall after over 30 years as a commone site in the Treasure Valley.
This shows that Macy's headquarters believes in the Nampa Idaho location. The strong commercial market the Treasure Valley has experienced has been due to the strong residential growth. The valley experience an explosion in terms of new residents the past few years and with all that growth there is a demand for increase retail outlets. At least so far, that demand seems to be in place. The State Highway Department is continuing work on Interstate I-84 from Boise to Caldwell and the Franklin interchange in Caldwell is a multi million dollar project that will be completed in the fall of 2008.
This much needed work on the local highway system will continue to not only encourage new residents but will also make it more attractive for business and industry to relocate to the Treasure Valley. Good highway systems complete a growing area and insure that the growth will continue to take place. In spite of a housing slow down across the country, Caldwell Idaho has been experiencing a strong real estate market because it continues to offer attractive homes at an attractive price that residents of the Treasure Valley can afford.
The Nampa - Caldwell area of south west Idaho is an area that continues to prosper in spite of tough national economic times.
Idaho prospers in a lagging national economy
The nations lagging economy has taken a toll on the nations personal income. Idahoans remains somewhat isolated from the rest of the nation when it comes to personal income. In 2007 Idaho ranked fourth in the nation for fourth quarter growth. Idaho's growth increased 1.3 percent, a third of a percentage higher than the national average. The information was reported in the release of the U.S. Bureau of Economic Analysis on Wednesday March 26, 2008.
With strong agriculture commodity prices and growth in personal services, Idaho offsett declines in construction and manufacturing in the final three months of 2007 to keep Idaho's personal income growth strong. Total income, the total of all wages, business owner profits, investment earnings and transfer payments like Social Security rose to $46.8 billion in Idaho for all of 2007. This follows significant downward revisions in the income estimates for the previous two years.
Idaho saw a $3 billion increase in personal income growth from 2006 to 2007. More than $1.7 billion was in "net earnings" from higher wages, salaries and proprietors' income.
Agriculture was the largest contributer to Idaho's higher net earnings, providing $121 million of the increase. Other strong industries are and their contributions are:
Health Care added another $105 million
Professional and technical services added another $78 million
Manufacturing accounted for $87 million
Construction added $27 million to round out Idaho's growth.
The other $1.3 billion increase in 2007 personal income was split between higher investment earnings and larger Social Security checks and other transfer payments.
Idaho's growth in view of a sluggish national economy has many experts impressed. In the early 1980's Idaho depended almost exclusively on agriculture as is primary contributer to Idaho's economic growth. While agriculture remains Idaho's leading industry, it now has a very balanced economic base with the strong addition of health care, technology and professional services.
For the first two months of 2008 Caldwell Idaho showed what the rest of the country would like to have, strong new home sales. For January and February of 2008 Caldwell had 103 homes sell as reported in the Intermountain MLS. Of those 103 sales, 61 or 59% were new home sales. The average marketing time for all homes sold was 51 days and the average sales price was $145,485.
What is even more impressive is that Caldwell's List Price vs. Sales Price Ratio was 98.02 percent during this time frame. This ratio was the strongest in the Treasure Valley which includes Boise, Meridian and Nampa which have historically been the strongest real estate markets in the past for S.W. Idaho. This List Price vs. Sales Price ratio represents the percentage of the asking price that was acheived. Many parts of the country are seeing List Price vs. Sales price ratios as low as in the 70 and 80 percentile ranges.
The strongest selling prices for Caldwell for January and February of 2008 were as follows:
0-$150,000 (67 sales)
$150-$250,000 (31 sales)
$250-$350,000 (2 sales)
$350+ (3 sales)
Caldwell has a high percentage of homes in the price range up to $150,000 which is the price range many residents of the Treasure Valley can afford. It also has many upper-end projects for those that have the abliity to purchase in those price ranges and want to live in Caldwell. Caldwell appears to have what many would like to have: A growing infrastructure, steady real estate market and a wonderful family environment.
Caldwell has seen some very positive events take place in the last 2-3 years. The Indian Creek Restoration Project has many residents excited and the completion of the Franklin Interchange will be completed by the fall of 2008.
Yes, at a time when the national economy is on shaky ground and many parts of the country are experiencing not only poor economies but rising crime statistics, the crime in Boise Idaho dropped 8% in 2007 and 37% over the past decade.
Many citizens and citizens groups have rallied and become involved in helping authorities fight crime and it has paid off in big dividends. Boise has been touted as a wonderful place for Business and Careers and the falling crime rate over the past decade is one of the reasons many families have chosen Boise and the Treasure Valley as a place to call home.
It is one thing to have a great business climate and a thriving economy but it is frosting on the cake to have a place where families can be raised in a safe environment. Go to Boise Crime Rate Report to read the entire crime report for the city of Boise.
Boise Idaho's real estate market has remained a very steady and stable real estate market. However, it is not exempt from the short sales and foreclosures that has hit the majority of the country. A "Short Sale" means the bank that holds the mortgage on a particular home is willing to accept a discount on the amount of money that is owed to them. Banks are more willing to work with a home owner because the cost of foreclosure can be very high in terms of the time involved and the cost of attorney fees and holding a property.
Short Sales can take some time because there is a timely procedure that must take place. Once an offer is placed on a short sale property the offer is submitted to the mortgage holder and that mortgage holder has a long list of procedures that must be followed to determine if the offer is acceptable. It is not unusual for this procedure to take 5-6 weeks or longer.
A foreclosure is when the homeowner has given up on making mortgage payments, a short sale was either not an option or failed, and the mortgage holder or one of it's service agencies now owns the home. In most cases these homes can have yards that need a lot of help and many of the homes have been stripped of appliances and other permanent fixtures. Just like short sales "Foreclosures" are sold in "As Is" condition with no warranties expressed or implied.
You can go to one site to search for many of the areas short sales and foreclosures. Simply go to www.SearchIdahoHomes.com to get started. Just click the "Search MLS Listings" and you will be well on your way. Have questions? Feel free to call me directly at 208-880-2333 or email me at george@tallabas.com