J. Kent Erickson, Broker Associate
Direct / 208.447.7848

Homeowners: We Need to Sell Your House Twice

Posted by on Jun 23, 2015 in Buying a Home, Real Estate Market, Selling a Home | 0 comments

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is that bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate comparable sales (similar houses in the neighborhood that closed recently) to defend the price when doing the appraisal for the bank. With escalating prices, the second sale might be even more difficult than the first. And now, there may be a second issue further complicating the appraisal issue. The Mortgage News Daily (MND) recently published an article titled Conservative Appraisals Increasingly Mentioned in 2015; Did Something Change? The article revealed that there was a “flurry” of...

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Housing Market: Freddie Mac Remains Optimistic

Posted by on Jun 15, 2015 in Buying a Home, Real Estate Market, Selling a Home | 0 comments

The April 2015 U.S. Economic & Housing Market Outlook from Freddie Mac revealed that they are optimistic about the real estate market in 2015. As a matter of fact, the sub-title of the report was “Great Expectations”. What made Freddie Mac so optimistic? Here are a few highlights from the report: “For the remainder of the year we should see a resumption of solid economic growth and acceleration in housing activity. Notwithstanding a disappointing March jobs report the acceleration is already underway.” “With spring upon us, housing markets are poised to accelerate and we expect the best year for home sales since 2007. Despite harsh winter weather to start the year, home sales through February are only off from the 2013 pace by 7,000 sales… Pending home sales were up 3.1 percent in February to the highest level since June 2013....

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Home Sales Skyrocketing!!

Posted by on Jun 2, 2015 in Buying a Home, Real Estate Market, Selling a Home | 0 comments

Yesterday, the National Association of Realtors (NAR) released their Existing Home Sales Report. The numbers shocked many analysts as they revealed a 10.4% increaseover the same month last year. This is the highest number of sales since September 2013. Sales have increased year-over-year for six consecutive months and the 10.4% increase is the highest annual increase since August 2013. March’s sales increase was the largest monthly increase since December 2010. Lawrence Yun, NAR’s chief economist, explained: “After a quiet start to the year, sales activity picked up greatly throughout the country in March. The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years.” Here is a graph showing home sales so far this year:       Bottom Line Houses are...

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