J. Kent Erickson, Broker Associate
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Homeownership Is a Good Financial Investment!

Posted by on Jun 30, 2017 in Uncategorized | 0 comments

Homeownership Is a Good Financial Investment! According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective? Ralph McLaughlin, Trulia’s Chief Economist explains: “Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.” The article listed five reasons why owning a home makes financial sense: Mortgage payments can be fixed while rents go up. Equity in your home can be a financial resource later. You can build wealth without paying capital gains....

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The Impact Your Interest Rate Makes

Posted by on Jun 28, 2017 in Uncategorized | 0 comments

The Impact Your Interest Rate Makes [INFOGRAPHIC] Some Highlights: Interest rates have come a long way in the last 30 years. The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget. Interest rates are at their lowest in years… RIGHT NOW! If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to...

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Are Home Prices Approaching Bubble Territory?

Posted by on Jun 26, 2017 in Uncategorized | 0 comments

Are Home Prices Approaching Bubble Territory? As home values continue to rise, some are questioning whether we are approaching another housing bubble. Zillow just reported that: “National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade.” Though that statement is correct, we must realize that just catching prices of a decade ago does not mean we are at bubble numbers. Here is a graph of median prices as reported by the National Association of Realtors (NAR). We can see that prices rose during the early 2000s, fell during the crash and have risen since 2013. However, let’s assume there was no housing bubble and crash and that home prices appreciated at normal historic levels (3.6% annually) over the last ten years. Here is a graph comparing...

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The Truth Behind the RENT vs. BUY Debate

Posted by on Jun 23, 2017 in Uncategorized | 0 comments

The TRUTH Behind the RENT vs. BUY Debate In a blog post published last Friday, CNBC’s Diana Olnick reported on the latest results of the FAU Buy vs. Rent Index. The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers at FAU use a “‘horse race’ comparison between an individual that is buying a home and an individual that rents a similar-quality home and reinvests all monies otherwise invested in homeownership.” Having read both the index and the blog post, we would like to clear up any confusion that may exist. There are three major points that we would like to counter: 1. The Title The CNBC blog post was titled, “Don’t put your money in a house, says a new report.” The title of the press release about the report...

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4 Reasons to Buy this Summer

Posted by on Jun 21, 2017 in Uncategorized | 0 comments

4 Reasons to Buy This Summer! Here are four great reasons to consider buying a home today, instead of waiting. 1. Prices Will Continue to Rise CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.1% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.9% over the next year. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense. 2. Mortgage Interest Rates Are Projected to Increase Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors...

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