New Year - New House!

Diet, exercise, reading more, breaking a habit, starting a habit; New year's resolutions are filled with great intentions, and if disciplined properly and truly committed to, can become life changing opportunities!

A new year, in a fashion, brings a breath of fresh air. 2008 certainly wasn't a year that many want to keep in the record books, for various reasons, but 2009 is now here and offers up fresh opportunities for change!

Many people ask my opinion of the Idaho real estate market, and though I am no economist or Nostradamus, here is my take for 2009:

First, I must admit, that this market has taken a sharper change than I ever anticipated. If you would have asked me about a bubble burst in the Boise real estate market in 2005, I would have laughed, shook my head & said "no way!" And though I believe the bubble hasn't burst, it has a pretty significant leak!

From 2004 and well into 2007, Idaho real estate experienced over 50% appreciation and things were good! Now we are seeing prices drop toward those prices of 2002/2003.

With banks and mortgage companies changing their lending practices and guidelines being more restrictive, buyers now may have to actually have some down payment money to buy a Boise home or Nampa home. Now, it's inevitable that there will be new loan programs introduced in this new year, but for now, it is common for home buyers to bring 3 - 3.5% down payment money to closing.

So, prices are down to the point of 5-6 years ago...they are LOW! Can they go lower? Maybe in some price ranges, but there is a point of diminishing return accompanied by the law of supply and demand. Our local average household income may not be able to support the sale and purchase of many homes over $300,000; there still may be some "softness" on those prices. When looking at the $100,000 range of homes for sale in Idaho, however, there are more buyers! Now that the holidays are behind us and the newness of 2009 is here, coupled with some of the lowest interest rates we've seen in years, homes will begin to sell faster, creating a bench or "bottom" of this market.

Keep in mind, there are many adjustable rate mortgages that will adjust throughout 2010, however, rates are dropping & those home owners should be able to withstand their monthly payments and most likely experience a reduction in their payment.

If you have considered Idaho real estate as an investment, this winter (Dec. '08 through Feb '09) will be a great opportunity to do so. Why? Because you will be taking advantage of both a seasonal decrease in pricing as well as the market low. Spring will bring on another breath of fresh air and very likely a slight increase in pricing. Remember, by the time you figure out if the market has hit bottom, it's too late!

Check out some of the best buys for Nampa Homes.

Apply for a loan with Leon Baker at First Mortgage Co.(Tell him you found his link on sellidaho.com)

Go buy a house! Contact Don Wixom at RE/MAX Advantage in Nampa, Idaho at (208) 880-5039 or e-mail wixy@sellidaho.com