Real Estate Information

This is a wonderful article discussing the pros of purchasing a home in this market.

5 GREAT THINGS ABOUT HOME OWNERSHIP

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!

By Carla Hill, Realty Times, November 2, 2011

Experts are saying that the Boise area is now in a Seller's market as our inventory is down substantially from a year ago. Inman News wrote an  article discussing this view with a number of statistics to back it up.  It is an interesting read.  Click below:

http://www.inman.com/news/2011/10/11/its-a-sellers-real-estate-market-in-boise

Great information on Idaho's low cost of living..............

Based on average housing costs, utilities, health care, transportation, groceries, and other services, Idaho’s cost of living is the lowest of the eleven western states. Boise Valley's cost of living is 97.1 percent of the national average, and in 2010 the average cost of a home in the valley was approximately 83.7 percent of the national average. Based on average housing costs, utilities, health care, transportation, groceries, and other services, the Boise Valley's cost of living is well below the national average.

The diversity of price and product that the Boise Valley housing market offers also is highly attractive to businesses and site selectors considering the area for relocation.

Boise Valley Economic Development (BVED.com)

 HOORAY! WHOLE FOODS IS BREAKING GROUND IN EAST BOISE!
 
 Whole Foods Market, a natural and organic grocer, will break ground Friday on a 35,000 square foot store in Downtown Boise – its first store in the state of Idaho.

Whole Foods, along with a 15,000 square foot Walgreens, will comprise the first phase of a mixed-use development located on Broadway Avenue between Front and Myrtle streets. The project is being co-developed by Boise businessman, Jim Kissler and Austin, Texas, based Schlosser Development.

Walgreens will open in fall 2012 and Whole Foods is targeting a late 2012 grand opening.

“I’m really excited about having the Nordstrom’s of the grocery business coming to Boise. I think it shows that our city has grown to a level of consumer sophistication and awareness to appreciate the value of a Whole Foods in our community,” said Kissler.

Both projects were designed by local architect, CSHQA of Boise and will be constructed by ESI of Meridian. It is anticipated that 150 workers will be employed throughout the construction process.

“After more than seven years working with various city agencies throughout the planning process, I am thrilled to see this project move forward. We started the process before the bubble burst, but were confident that Boise had the demographic profile to make this a success even in a downturn," said Schlosser Development CEO Brad Schlosser.

A public groundbreaking ceremony featuring Boise Mayor Dave Bieter and other stakeholders will be held at 11 a.m. Friday at the project site.

Idaho Statesman
Wednesday, Oct. 19, 2011

I've had lots of questions from clients about the fact that even though their home values are down their taxts have gone up. Below is an explanation from the ID Tax Commission.

In late October, the State Tax Commission will certify all the levies.

In late November, county treasurers will send out 2011 property tax bills.

Dec. 20, the first half is due.

June 20, the second half is due.
Lower property values do not necessarily translate into lower taxes.

Even though Ada County homes experienced a median decline in value of 11 percent last year — and a whopping 42 percent drop since 2006 — it is likely most property owners will pay more in property taxes this year.

That’s because property tax bills are determined by the levy rates set by individual taxing districts — and those levy rates are based on budgets that can keep growing despite a drop in property values.

There are 41 taxing districts in Ada County, including the county, cities, schools, emergency medical services, and library, cemetery, mosquito abatement and irrigation districts.

When property values drop, these districts have to increase rates just to keep the same level of revenue.

“Even if the budget stays the same, the levy is going to go up to compensate for the decline in value of your property,” said Ada County Clerk Chris Rich, who each year helps the county draft its budget.

This week, Ada County commissioners officially set the levies submitted by the taxing districts — and nearly all increased their levy rate over last year.

Canyon County officials will do the same Thursday.

Theoretically, Ada homeowners whose values fell by the median decline of 11 percent or more have a chance of seeing a lower property tax bill.

Those living in areas where values were down significantly less than that could see increases.

Your final bill depends on how many of those 41 districts include your property — and how much of the homeowner’s exemption (which sits at $92,040 this year) you qualify for.

MAXING OUT

Idaho law has two mechanisms to keep property tax and levy rates in check.

Each taxing district can raise its budget by only 3 percent annually, plus a percentage for new construction.

This year, Boise was the only city in Ada County to utilize this increase — the City Council voted to take a 1.5 percent increase.

The other five cities — Eagle, Garden City, Kuna, Meridian and Star — all chose to take none of the allowed increase and to collect the same amount in property taxes as last year.

So did the county and the Ada County Highway District.

The second way the state limits increases is by setting a maximum levy rate for counties, cities and other taxing districts.

As property values plummet for the third consecutive year, some agencies are getting close to maxing out their levy, Rich said.

The maximum levy rate for cities is .009. Boise, with a .00778 levy, is the closest Ada County city to maxing out.

Five of Ada County’s eight fire districts have reached their maximum levy, as have all three library districts.

Once a district reaches that maximum rate, its budget stays locked until property values increase.

“You can’t use the 3 percent or new construction roll if it takes you over max levy,” said Brad Vanderpool, Ada County tax levy analyst. “Once you hit max levy, you are done.”

Copyright: © 2011 Idaho Statesman
BY CYNTHIA SEWELL
Wednesday, Sep. 14, 2011

Thought this was an interesting article in The Statesman concerning recent home sales.

Monday, Sep. 26, 2011

Sales of new homes of $500,000 and up rose 150 percent to 10 in August compared to the same month last year, when four were sold, according to Intermountain Multiple Listing Service numbers.

New home sales increased as well by 128 percent to 82 from 36.

In Canyon County, the heart of the market lingers at the low price end due to the high number of foreclosed properties.

Sales of existing homes under $69,999 grew 94 percent to 822 in August from 424 in the same month last year. Sales of homes between $70,000 and $89,999 also rose 11.80 percent to 502 from 449.

Homebuyers and investors often compete in bidding wars for these properties. Now is the time for people to buy because of the values on the market and the low rates on mortgages.