Why Is Buying Such a Smart Move in Idaho Falls?

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

Today we are going to go over the numbers to determine if it’s better to rent or to buy here in Idaho Falls. If you are currently renting, or know someone who is, you should pay special attention to this. For the sake of consistency in the numbers, let’s say that we are talking about a home that costs $210,000.

With a 5% down payment, you will still need a loan of $200,000. The standard interest rate on this type of mortgage is around 4%. In addition to these costs, your property taxes would cost you $1,950 per year, with an extra $600 per year to cover insurance. This makes your principal payment $1,167 per month. 

In 12 months, you would be able to take your principle balance down to $196,377 which gives you an equity buy down of $3,396 and an extra $7,350 of equity assuming a 3.5% appreciation rate. Those numbers may not mean hard cash in your pocket, but they are real.

In addition to those savings, you get tax breaks as well. You can deduct both your property taxes ($1,950) and mortgage insurance ($7,920) on your taxes, giving you $9,870 back on your taxes.

I called a few property managers to get an idea of what this home would cost per month if you were renting it, and they came to a consensus that it would be around $1,450 per month. If you were renting this home, you would be paying an extra $283 per month which adds up to $3,396 per year. 

As you can see, when you buy a home as opposed to renting it, you can save up to a total of $16,582 on a $210,000 home in just your first year of homeownership! 

If you don’t own a home, or know somebody else who doesn’t, these are the numbers and numbers never lie. If you have any questions for us, give us a call or send us an email. We can’t wait to hear from you!

Click here to learn more about the advantages of being a homeowner.

Review of the 2015 Idaho Falls Real Estate Market

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

In mid-December, the Fed increased interest rates by a quarter of a percent. The market anticipated this, so mortgage rates have increased by the same amount. For instance, a thirty-year fixed-rate mortgage rests at about 4%. The Fed announced rates will increase by another 1% this year.

In Bonneville County, there were 366 properties on the market on January 1st. This number includes townhomes, residential acreages, in and out-of-town properties, etc. Compared to last year, that’s a decrease of 33% -- also, down an even further 25% from 2014.

We have also experienced a significant reduction in inventory, due to a 24% increase in the number of homes sold since last year. However, in the past quarter, this low inventory caught up to us. In December, we didn’t exceed ourselves compared to 2014 and were down 15%. That number, though, is more a reflection of the inventory, not necessarily the market holistically.

The average median price increased 5.7% over the past twelve months. That’s huge! This is the biggest increase we’ve ever seen, compared to our hottest time (during 2007-2008) at 6%. In the $150,000 range, our previous price average, the number of homes increased by 12.5%. Homes over $150,000 increased by 39%. The median has increased here.

Additionally, 33% of listed homes weren’t sold. If your home isn’t priced correctly or in the right condition, it simply won’t sell.

Now is a great time to buy before interest rates increase. This, likewise, is an excellent opportunity for sellers to take advantage of new buyers. We’d be happy to serve your real estate needs in 2016. Give us a call or email today!

Professionals You Can Count On in Idaho Falls

Selling your Idaho Falls home? Get a free home value report

Buying an Idaho Falls home? Search all homes for sale

Homeowners: who do you call when something goes wrong? When you own a home, stuff happens. Things break. They stop working. You want to make changes and repair. Sometimes, you might wonder about who you should call in to help.

Over the years, we’ve worked with different kinds of local contractors that provide exceptional services at competitive prices. We’ve compiled a comprehensive list with this information. We include sheet-rockers, roofers, electricians, plumbers, handymen, landscapers, carpet businesses, painters, and more. We know professionals that handle all different trades.
 

If you need a professional to help with home repairs or changes, give us a call. We’re happy to set you up with this list and connect you with a credible professional in the area.

Also, if you have an excellent experience with a vocational professional, let us know. We’re always looking to add to and improve our list. We love making recommendations to our clients in Idaho Falls.