Inventory Levels – according to the National Association of Realtors, 2017 started out with the lowest level of inventory since the recession. Of course, here in the Treasure Valley, inventory is always low this time of year but our level of inventory for existing homes in 2016 was normal. Inventory for new construction changes but local builders have been on a building spree and the inventory for new homes should be good. Once the snow melts – there will be plenty of homes for sale so get out there and start looking!
Rising Home Prices – A house is worth what the Appraiser says it is worth – not what a buyer may be willing to pay for it unless the buyer has cash. A cash buyer can pay as much as they want to for a home because it will not be appraised. But, since most buyers are obtaining loans, this means that the price cannot go higher than the value the Appraiser places on the home. So, even if there are multiple offers on the home you have made an offer on, don’t be intimidated. Make an offer that fits your budget and one that reflects the actual value of the home. Your Realtor can help you with that process.
Yes, prices have gone up as the economy has improved. That reflects a normal, healthy housing market. Prices that remain the same or that are dropping reflect a housing market that is headed for problems. A healthy market will have home prices that are gradually rising and will mean that the value of your new home should continue to rise after you purchase it.
Changing Mortgage Rates – it is true that mortgage rates have risen slightly. At the end of 2016 rates were up to 4.2% after being as low as 3.5%. The rates have been historically low levels for several years now and everyone knew that once the economy stabilized, rates would rise. To keep things in perspective, remind yourself that a rate of 8% was once considered low! Of course, you want the lowest rate you can get but don’t let a slight rise in rates keep you from owning a home. Rent is usually higher than a house payment so make the investment now before rates go higher!
What does all this mean? It just means that you need a good realtor who can guide you through the process of finding your dream home and making a good offer on it! There are always challenges when purchasing a home but a hard-working Realtor can guide you through the process and make it a great experience .
With that in mine – give me a call – I’m a really good Realtor!
Connie ~ 208.880.0828