J. Kent Erickson, Broker Associate
Direct / 208.447.7848

When is a Good Time to Rent? Not Now!

Posted by on Sep 22, 2018 in Uncategorized | 0 comments

When Is a Good Time to Rent? Not Now! People often ask if now is a good time to buy a home, but nobody ever asks whether or not it’s a good time to rent. Regardless, we want to make certain that everyone understands that now is NOT a good time to rent. The Census Bureau recently released their 2018 first quarter median rent numbers. According to their report, here is a graph showing rent increases from 1988 until today: As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead. Bottom Line One way to protect yourself from rising rents is to lock in your housing expense by...

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Did Tax Reform Kill the Luxury Market? NOT SO FAR!

Posted by on Sep 20, 2018 in Uncategorized | 0 comments

Did Tax Reform Kill the Luxury Market? NOT SO FAR! The new tax code limits the deduction of state and local property taxes, as well as income or sales taxes, to a total of $10,000. When the tax reform legislation was put into law at the beginning of the year, some experts felt that it could have a negative impact on the luxury housing market. Capital Economics: “The impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.” Mark Zandi of Moody’s Analytics: “The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.” The National Association of Realtors (NAR) predicted price declines in “high...

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Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years

Posted by on Sep 18, 2018 in Uncategorized | 0 comments

Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5% (or more) over the next twelve months. One major challenge in such a market is the bank appraisal. When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the same neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank. Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is. March 2015 marked the first month of a...

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4 Steps to Follow When Presenting an Offer in Today’s Market!

Posted by on Sep 16, 2018 in Uncategorized | 0 comments

4 Steps to Follow When Presenting an Offer in Today’s Market! So, you’ve been searching for that perfect house to call a ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure that you make a great offer so that you can guarantee that your dream of making this house yours comes true! Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration: 1. Determine Your Price “You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.” Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and...

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Will Home Prices Fall as Mortgage Rates Rise?

Posted by on Sep 14, 2018 in Uncategorized | 0 comments

Will Home Prices Fall as Mortgage Rates Rise? Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, some are guessing that home prices will depreciate. However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates. Mark Fleming, First American’s Chief Economist: “Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective – they are unlikely to materially impact the housing market… The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power....

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Millennials Are Skipping Starter Homes for Their Dream Homes

Posted by on Sep 12, 2018 in Uncategorized | 0 comments

Millennials Are Skipping Starter Homes for Their Dream Homes A new trend has begun to emerge. With home prices skyrocketing in the starter home category, many first-time homebuyers are skipping the traditional starter homes and moving right into their dream homes. What’s a Starter Home? According to the National Association of Realtors (NAR), simply put, a starter home is a one or two-bedroom home (sometimes even a small, three bedroom).“Prices vary widely by market but starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.” Finding Their Forever Homes Now A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The aftereffects of the Great Recession teaming up with larger education costs forced many to either remain living in their parent’s homes or to...

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