The Idaho Falls real estate market is diverse with both buyers and sellers alike seeking a variety of different properties. As a prospective seller, you can find out the market value of your property with a free home value report right here, or if you're looking to purchase in the Idaho Falls click here for full MLS access. Always feel free to reach out to us for any questions regarding the current market conditions, or the value of your property at 208.227.5320.
When I'm running around town and I run into past clients, I often get the question: "Hows the market?" Since that's not always an easy question to answer, I thought I would try do so in today's blog.
We are currently very low on inventory. Only 656 homes are on the market, which isn't much. For instance, in 2008 we had 1,078 homes on the market and 1,025 in 2010! Because we have such a lack of inventory, we're seeing some pressure on certain price ranges.
If you're thinking about selling, now might be the time. Contrary to popular opinion, homes do sell in the winter months. For the first half of 2014, sales were down 7% as compared to 2013. However, the last three months have been quite strong, as sales are up over 16% over the same three months a year ago. This increase in sales has effectively reduced inventory levels.
We've been watching interest rates closely, as they play a huge role in how the market operates as a whole. Just yesterday I was quoted a 30-year fixed-rate mortgage rate with only 3.75% interest. Obviously, rates remain incredibly low at the moment. However, I recently read an article that said average mortgage rates are likely to rise by mid-2015, and climb as high as 6% by 2016! A 1% change in interest rates is the equivalent of an 11% change in buying power. For example, if you're borrowing $200,000 at today's rate, your principal and interest payment would be $925. If rates go up 1%, in order to have that same $925 payment, you would only be able to borrow $178,000! The type of home you can get for $200,000 is radically different than one you would have to settle for at $178,000.
These are just some things to think about. The market moves in cycles and we are currently seeing favorable conditions for buyers and sellers alike. If you would like more information on current market conditions, or would like to discuss your options, please give us a call or shoot us an email. We would love to hear from you!
