Where Are Interest Rates Heading?

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Last week, I attended the annual Megacamp for Keller Williams. Gary Keller discussed his and the experts' forecast for our real estate market, and they all agree that a shift is approaching our market due to changes in interest rates.

The Fed wants to see interest rates between 5% and 6% because the rates we have now are not healthy for the economy. What does this mean for you?

Let me give you an example. The other day, I had some folks lock in a 30-year conventional loan at 3.625% percent. If they borrow $200,000, they would have a principle and interest payment of $915. If rates go up one by one percent, they can only borrow $178,000 in order to have a payment of $917. If rates go up to that target range of 5.625%, to keep the same payment of $917, you would only be able to borrow $159,000 to buy their home.

That is a 22% loss of buying power due to a two percent change in interest rates. There will still be people moving, and first-time buyers will still come onto the market. However, all the people who bought homes with these low rates may want to upgrade someday. When they recognize their loss of buying power, these people won't move. They'll stay where they are.

The consequence is that fewer homes will come on the market, and there will be fewer buyers. At this point in time, the experts don't believe that interest rates will affect home value. So if you're interested in buying, lock in these low interest rates now.

If you have any questions, give me a call or send me an email. I look forward to hearing from you!

What’s Going on in Idaho Falls?

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We are here today to give you an update on how the Idaho Falls real estate market has performed so far in 2015. Today we are going to provide you with the latest statistics, while comparing them to last year’s numbers to demonstrate where we have seen growth in the market.
 

I’ve mentioned in the past that inventory has been low in Bonneville County, and that fact still holds true. In fact, inventory is down 30% from last year and some price ranges are seeing half of the inventory they were seeing at this point in 2014.

Homes are selling extremely quickly if properly priced. Right now, we are up 33% in closed sales as compared to last year.

The average days on market is down as well, from 103 this time last year to just about 90 days right now. This is a measure of time from when the home is listed until an offer is accepted.

Everyone wants to know about home values, and if they are going up or not. We are happy to report steady home appreciation over last year. Home values have risen an impressive and healthy 4% from last year. 
 
We have plenty more statistics where these come from. If you would like to take a look at them, just send us a quick email and we can send you a report immediately. We would love to hear from you! 

Home Staging Is a Key to Selling in Idaho Falls

Selling your Idaho Falls home? Get a free home value report
Buying an Idaho Falls home? Search all homes for sale

Last month, we talked about the importance of getting the outside of your home ready for sale and making sure your “curb appeal” is all squared away. You don’t want to over promise or under-deliver. So if the outside of your home looks great, you’ve got to have the inside to match. Here are some tips to help get your home staged and ready for home buyers to see:

The first thing to do is declutter. Make sure your furnishings are accenting the house, not dominating it. Take down personal photos as well, because while you want the home to look lived in, you don't want the buyer to feel like they are in someone else's home.

You want to make sure your carpets are all squared away. Clean them, stretch them, even replace them if you have to. Paint is another important aspect of your home, and one of the highest returns on investment when it comes to remodeling. If your home needs a fresh coat, go for it. You will get your money back from that investment.

There is a lot to learn about getting your home ready. If you are considering selling, give us a call or send us an email and we would be happy to help provide you with even more useful advice. We look forward to hearing from you!