Our Columbia Village home is in a planned community with great walking paths, and recreation center with exercise room, tennis and racquetball courts and swimming pools. Home to great schools, sports fields and views of the Treasure Valley, it’s a great location for families and those wanting to experience an active lifestyle.
3418 S NORTH CHURCH AVENUE, SOUTH EAST BOISE
The North Church location is at the heart of South East Boise, close to great schools, shopping, restaurants and coffee shops. This home is a 15-minute drive to both downtown and the airport, making it an ideal Boise location!
Our Elmcrest listing is located in one of Boise’s first suburbs, the Bench. This area began to grow from its agricultural roots to a highly sought-after residential area once the Boise Train Depot was finished in the 1920's. Homes here have an eclectic style, ranging from mid century modern, to historic estates, to new construction. It's central location puts this neighborhood in great proximity to downtown and everything Boise has to offer! Fun fact: Vista Village, reportedly the nation's first strip mall, was built in 1949.
We hope to see you Sunday, but if you can’t make the Open House, call our office – 208.473.2203 to arrange for a private tour. One of our agents will be happy to show at your convenience! And, if we can help with your real estate needs – whether buying or selling – Call us or visit our website at www.templetonrealestategroup.com
By Bonnie Way Snider, Licensed Realtor® and Blogger
4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again
With home prices rising again this year, some are concerned that we may be repeating the 2006 housing bubble that caused families so much pain when it collapsed. Today’s market is quite different than the bubble market of twelve years ago. There are four key metrics that explain why:
Home Prices
Mortgage Standards
Mortgage Debt
Housing Affordability
1. HOME PRICES
There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.
Frank Nothaft is the Chief Economist for CoreLogic (which compiles some of the best data on past, current, and future home prices). Nothaft recently explained:
“Even though CoreLogic’s national home price index got to the same level it was at the prior peak in April of 2006, once you account for inflation over the ensuing 11.5 years, values are still about 18% below where they were.” (emphasis added)
2. MORTGAGE STANDARDS
Some are concerned that banks are once again easing lending standards to a level similar to the one that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.
The Urban Institute’s Housing Finance Policy Center issues a Housing Credit Availability Index (HCAI). According to the Urban Institute:
“The HCAI measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”
The graph below reveals that standards today are much tighter on a borrower’s credit situation and have all but eliminated the riskiest loan products.
3. MORTGAGE DEBT
Back in 2006, many homeowners mistakenly used their homes as ATMs by withdrawing their equity and spending it with no concern for the ramifications. They overloaded themselves with mortgage debt that they couldn’t (or wouldn’t) repay when prices crashed. That is not occurring today.
The best indicator of mortgage debt is the Federal Reserve Board’s household Debt Service Ratio for mortgages, which calculates mortgage debt as a percentage of disposable personal income.
At the height of the bubble market a decade ago, the ratio stood at 7.21%. That meant over 7% of disposable personal income was being spent on mortgage payments. Today, the ratio stands at 4.48% – the lowest level in 38 years!
4. HOUSING AFFORDABILITY
With both house prices and mortgage rates on the rise, there is concern that many buyers may no longer be able to afford a home. However, when we look at the Housing Affordability Index released by the National Association of Realtors, homes are more affordable now than at any other time since 1985 (except for when prices crashed after the bubble popped in 2008).
Bottom Line
After using four key housing metrics to compare today to 2006, we can see that the current market is not anything like the bubble market.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
This month, Arch Mortgage Insurance released their spring Housing and Mortgage Market Review. The report explained that an increase in mortgage rates and/or home prices would impact monthly payments this way:
A 5% increase in home prices increases payments by roughly 5%
A 1% rise in interest rates increases payments by roughly 13% or 14%
That begs the question…
What if both rates and prices increase as predicted?
The report revealed:
“If interest rates and home prices rise by year-end in the ballpark of what most analysts are forecasting, monthly mortgage payments on a new home purchase could increase another 10–15%. That would make 2018 one of the worst full-year deteriorations in affordability for the past 25 years.”
The percent increase in mortgage payments would negatively impact affordability. But, how would affordability then compare to historic norms?
Per the report:
“For the U.S. overall, even if affordability were to deteriorate as forecasted, affordability would still be reasonable by historic norms. That is because the percentage of pre-tax income needed to buy a typical home in 2019 would still be similar to the historical average during 1987–2004. Thus, nationally at least, even with higher rates and home prices, affordability will just revert to historical norms.”
What about home prices?
A decrease in affordability will cause some concern about home values. Won’t an increase in mortgage payments negatively impact the housing market? The report addressed this question:
“Even recent interest rate increases and higher taxes on some upper-income earners didn’t slow the market, as many had feared…Short of a war or stock market crash, housing markets could continue to surprise on the upside over the next few years.”
To this point, Arch Mortgage Insurance also revealed their Risk Index which estimates the probability of home prices being lower in two years. The index is based on factors such as regional unemployment rates, affordability, net migration, housing starts and the percentage of delinquent mortgages.
Below is a map depicting their projections (the darker the blue, the lower the probability of a price decrease):
Bottom Line
If interest rates and prices continue to rise as projected, the monthly mortgage payment on a home purchased a year from now will be dramatically more expensive than it would be today.
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4856 E ARROW JUNCTION DR HARRIS RANCH | MILL DISTRICT SUNDAY, APRIL 29 | 1:00 - 3:00 pm
Please join us! The first 10 visitors will receive a gift card to the Coffee Mill!
East Boise’s Mill District subdivision, part of Harris Ranch and the Barber Valley, could be considered the perfect place to live. It’s a charming, porch community with pleasant, winding streets that meander through diverse architecture and mature landscaping. Pride of ownership is evident. Its residents are as diverse as the properties, inhabiting young families, professional couples and retirees.
The location can’t be beat with its proximity to the Greenbelt and walking trails to the Boise River, Foothills and easy commute to downtown and the airport. And, the neighborhood includes a community club house, gym and outdoor swimming pool. What’s not to love?!
4856 E ARROW JUNCTION DR
We hope to see you Sunday, but if you can’t make the Open House, call our office – 208.473.2203 to arrange for a private tour. One of our agents will be happy to show at your convenience!
Templeton Real Estate Group presents TWO FABULOUS HOMES for sale in desirable Harris Ranch. Visit our TWO OPEN HOUSES on SUNDAY, APRIL 22 | 1:00 – 3:00 PM and be entered to win a $250 Visa Gift Card as well as other giveaways!
For more information and directions, click on the addresses:
5258 E Sawmill Way in Mill District at Harris Ranch
Harris Ranch has become an increasingly sought-after area to live in Southeast Boise. The saying, “there’s something for everyone” is really applicable. With a diverse range of homes, from smaller, single-level ‘patio’ style to larger two-stories with yards to expansive homes with views to a state-of-the-art senior living facility, the area appeals to young couples, growing families as well as retirees.
We’d love to see you at our Open Houses this weekend! Or, if you would like a private tour of either of these homes / if we can help with your buying or selling needs, please call today (we offer a FREE comparative analysis of your home) - 208.473.2203.
Check out the latest market activity in Harris Ranch Here
By Bonnie Way Snider, Licensed Realtor® and Blogger
While doing a little research, I came across a (financial guru) Dave Ramsey blog on buying a home in a seller’s market – which is what we are experiencing here in the Boise area right now. It reads as though it could have been written for our local buyers, so I thought I would share much of it here:
If you’re on the hunt for your next home, you’ve likely hit a few obstacles. Maybe every home you like is already under contract. Or you keep running into bidding wars and losing.
Whatever your trouble, one thing’s for sure: The prices keep going up. We’ve all seen the news stories about rising home prices all across the Treasure Valley.
Yep. It’s a hard-knock life for home buyers these days.
So we thought we’d share a bit of encouragement—and advice—from folks who survived the home-buying frenzy and lived to tell it.
Get a Financial Leg Up
In a seller’s market, cash is definitely king. Sarah M. just bought her first home with cash and admits it gave her an advantage over other buyers.
Of course, an all-cash offer may not be an option for you. If that’s the case, then do the next best thing: “Get pre-approved with a lender that offers legitimate, credit-underwritten pre-approvals,” Steve B. suggests.
Mortgage pre-approval goes further than prequalification because you submit all the required paperwork up front. The bank then verifies the amount you can afford to pay for your next home. It takes the guesswork out of your home search and shows sellers you can back your offer up with real money.
Steve says that puts you in a much more competitive position as a buyer. “You can close faster, with less loan-oriented stress,” he adds.
Don’t Let Impatience Wreck Your Budget
If one pain point topped the list, it was this: “Finding exactly what we wanted in our price range,” Salina R. says.
Kathy S. wrestled with the temptation to bite off a bigger chunk of mortgage debt just to land a home. She bid on a home that was $10,000 over budget and lost to another buyer. “We know it wasn’t meant to be,” she says.
As fate would have it, they found—and successfully offered on—a home that was $10,000 under their budget! “We just made our first house payment, and knowing it isn't a stretch to our pocketbook is a great feeling,” Kathy says.
Patience can be hard to come by when you feel pressure to beat buyers to the punch. But try not to get so carried away you forget the financial goals you’re working toward. Remember, Dave recommends keeping your mortgage payment to no more than 25% of your monthly take-home pay on a 15-year fixed-rate mortgage.
Keep Your Options Open
Dave always says if you keep doing the same thing you’ll keep getting the same results. So why not shake things up a bit?
If existing homes aren’t working out for you, give new construction a try! That’s what Debby G. did. “We were able to get into new construction for much cheaper with a one-year warranty and no worries of major system failures,” she says.
Derek D. kept running into roadblocks, so he adjusted his expectations. “We ran into our right place by accident by broadening our search,” he says.
Katie N. realized she would have to offer over asking price to get a home in her area. Sound familiar? Then limit your search to homes with a healthy margin between list price and your max budget. That way you can up the ante without breaking the bank. “We were blessed to get a good deal on a foreclosure,” Katie says.
Selling a Home? Prepare a Backup Plan
In many markets today, buyers with a home to sell are running into an interesting problem. “We close on our sale Monday,” Shea S. says. “However, we do not have a place to call our own yet.”
That’s why it’s smart to research temporary living options before listing your home. That way, if your home goes quickly, you’re not stuck with no place to land.
Here are a few ideas to consider:
Rent your home back from your buyers until you find a new place.
Move into an apartment or other short-term rental.
Crash with family (and save extra money in the process!).
Moving twice may be no fun. But it’s better than rushing into a home purchase you (and your budget) will regret down the road.
Though it can be frustrating to be out-bid on homes, just know that you are not alone, and that by having a little patience and using some of the tips above, you will find your perfect home soon!
Zillow CEO On Housing: It's A Seller's Market | CNBC
We’d love to help if we can. Call Templeton Real Estate Group today – whether buying or selling. We offer free consultations and would be happy to talk with you about your wants and needs and offer strategies to achieve them – 208.473.2203.
By Bonnie Way Snider, Licensed Realtor® and Blogger
Buying a home can be both overwhelming and exciting, but especially so for first-time buyers. There are so many things to think about and consider. A professional and knowledgeable Realtor® can help navigate everything with you and guide you along the entire process.
So, of course, if you are thinking about buying a home in the Boise area, we hope you will give us a call! We promise to help you with every step of the home buying process and beyond. But, in the meantime, enjoy the story below with tips from first-time home buyers:
Realtor.com® has teamed up with one of BuzzFeed’s most popular couples, Ned and Ariel Fulmer, as they take the leap and become homeowners for the first time. In a three-episode video series, you can follow the couple and their dog, Bean, as they navigate the hilarious, yet challenging twists and turns of buying their first home.
Like any first-time home buyer, Ned and Ariel learned a lot along the way.
“Home means family. It means a space that you can call your own and customize to your needs,” said Ariel. “Lots of factors can affect the investment value but at the end of the day it is a space that is ours, that we actually own and we are incredibly proud of that.”
Ned and Ariel found their perfect home, and they recently shared five key tips for all of you first-time home buyers out there looking to go from home dreamer to homeowner.
Get the latest tech and explore. The latest in real estate technology allows you to explore potential homes in new, unique ways. Realtor.com® offers 3D tours through Matterport, Sign Snap that allows you to take a picture of a for-sale sign and instantly see a home’s listing details, and Ned and Ariel’s favorite feature, Street Peek, which is available on Android. Realtor.com® has a very cool augmented reality feature called ‘Street Peek,’” said Ned. “You hover your phone over houses in your neighborhood and the price, and number of bedrooms and bathrooms pops up. We had a lot of fun driving through different neighborhoods to see if we liked the vibe of each street and checking out how much each house cost.”
Check in with the professionals. Knowing how much home you can afford is always the first step when starting the journey toward home ownership. Mortgage brokers and real estate agents can provide you with professional insights on what you can likely afford based on your requirements and preferred neighborhood. “We went into our search without a clear sense of what our budget was, which was a huge mistake,” said Ariel. “If we had spoken with a loan officer or a real estate agent from the very beginning of the process we could have narrowed the scope of our search and potentially saved a lot of time and heartache. There were more than a few houses that we fell in love with, but couldn’t make a strong offer because we didn’t have a pre-qualification letter yet.” Realtor.com® also has a helpful mortgage calculator that can help you gauge what your estimated payment would be for the home you’re dreaming about.
Be open to compromises. We all dream of that perfect home with the huge walk-in closets, real hardwood floors and an open kitchen, but sometimes the reality of your budget, commute and other factors come into play. Compromising is always key when buying a home, especially with a significant other. “We had to make some pretty major compromises. I work from home as an interior designer and Ned commutes to the BuzzFeed Studio in Hollywood. We had a real ‘space vs. commute’ debate,” said Ariel. “If we moved farther away, we could suddenly afford space for an office and a guest room and a nursery, but then I would never see my husband because he would be sitting in traffic for two hours a day. It was tough but I think we ultimately found a compromise.” Realtor.com® can help with this through tools like our Commute Time calculator that shows you how long it would take you to get to work from the home you’re interested on the listing detail page and plenty of tips on how to maximize space and make improvements. “We really had to settle on a middle ground because there was nothing we saw that was absolutely perfect from the get-go,” Ned added. “In the house that we ended up buying (no spoilers!), Ariel got her home office and we managed to keep my commute under 30 minutes (which, in L.A. seems like a miracle).”
Let your imagination run wild. Home dreaming is half of the fun and at realtor.com®, we encourage it. It’s okay to be imaginative and look at houses that are out of your price range for inspiration. “Even when we couldn’t afford something, it was fun just to browse and imagine being fancy. Sometimes we would put on a slight British accent and pretend we were foreign investors,” Ned said. “Let your imagination run wild and visualize every space as if it’s your own house. You’ll ultimately find the right one for you!” When you find a house that’s within your budget and has major potential, start thinking about simple improvements that will make it your very own. Once you get those keys, you can claim your home on realtor.com®’s My Home to help you manage your home and get inspiration for future remodeling projects. “As an interior designer who loves to DIY, the thought of being able to knock down walls is a dream come true for me. When you buy, there is a potential to make the space whatever you want instead of having to work within the parameters of a rental,” Ariel said. “We also have a baby on the way, so having more space and setting down roots were important to us.”
Patience pays off. Buying a home is one of the biggest decisions you’ll make in your life, so try to be patient and enjoy the process. It can be a long one, but keep your eye on the prize. “It takes a long time to buy a house! Not only do you have to actually find the house of your dreams, but especially in the L.A. real estate market, you don’t always get the first house that you make an offer on,” said Ned. [This is happening sometimes in Boise right now with more buyers than available inventory.] “We were looking for over two years and found that we had the best luck when we finally agreed with each other that it was the location that mattered the most.” Once you are ready to make a commitment to a home, it can be scary but Ned and Ariel say don’t sweat it too much and jump right in. “Actually committing to putting in an offer was a HUGE step for us. We definitely agonized over which house to choose,” said Ariel. “Once you realize that no house is going to be 100 percent perfect, it gets a lot easier because every house can become perfect if you make it your own.” There’s no better feeling than getting those keys and stepping into a home that’s finally yours. Explore, have fun with it like Ned and Ariel did, and don’t forget you’re not just buying a property, you’re making a home. And here at realtor.com®, we understand that home means everything because it means everything to us, too!
We’d love to hear from you and help with your real estate needs – whether buying or selling, whether first-time or long-time! Call today - 208.473.2203.
By Bonnie Way Snider, Licensed Realtor® and Blogger
Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 Years
If you are considering selling your current home, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed.
Last week, Trulia posted a blog, Not Your Father’s Housing Market, which examined home affordability over the last 40+ years (1975-2016). Their research revealed that:
“Nationally, homes are just about the most affordable they’ve been in the last 40 years… the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the median home price.
Despite relatively stagnant incomes, affordability has grown due to the sharp drop in mortgage rates over the last 30 years – from a high of over 16% in the 1980s to under 4% by 2016.
Of the nation’s 100 largest metros, only Miami became unaffordable between 1990 and 2016. Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame.”
Here is a graph showing the Affordability Index compared to the 40-year average:
The graph shows that housing affordability is better now than at any other time in the last forty years, except during the housing crash last decade.
(Remember that during the crash you could purchase distressed properties – foreclosures and short sales – at 20-50% discounts.)
There is no doubt that with home prices and mortgage rates on the rise, the affordability index will continue to fall. That is why if you are thinking of moving up, you probably shouldn’t wait.
Bottom Line
If you have held off on moving up to your family’s dream home because you were hoping to time the market, that time has come. Call the Templeton Real Estate Group today to get started! 208-473-2203 Info@TempletonRealEstateGroup.com
Recently, we blogged about Boise Hunter Homes and their new development in East Boise, Harris North, part of the expansive Harris Ranch development. Continuing our look at what’s hot in the Boise real estate market, we’ll take a look this week at Brighton Corporation and the great work and beautiful homes they are building around the Treasure Valley.
Brighton Corporation is an Idaho real estate developer, that covers a full range of real estate development disciplines and includes some of Idaho’s premier residential communities, business parks and shopping centers.Brighton’s residential and mixed-use communities are the result of thorough, thoughtful planning. Each community is designed around a unique theme that is carried throughout. Of note, Brighton Corp is responsible for the development of East Boise’s thriving Barber Valley, which is in our neck of the woods.
One of the things we love about Brighton is that they take a proactive approach to protect, respect and live harmoniously with the area’s wildlife and works to educate its residents. And, in keeping with building smart, they also pride themselves on building green. They promise a commitment to healthy and efficient homes. Below is how they describe what they do:
Brighton Homes, was organized in 1994 to add a construction team to its well-established land development company. The founder’s desire for the type of company that Brighton Homes would become was reflected in the corporate motto “skillfully designed and masterfully crafted.”
The stock market crash of 2008 dealt a crippling blow to the housing industry nationally and in our local market. Like other builders, Brighton Homes was faced with a need to reinvent itself as it prepared to navigate a very uncertain future for residential construction.
Brighton Homes sought a clear mission that would provide guidance through the challenges that were certainly to come. It was decided that 100% participation in the EnergyStar program would be the best way to convey to our buyers, trade partners and competitors that Brighton Homes was going to focus more than ever on building the best quality homes possible. This is a difference you can see and feel in your new home. Brighton Homes is a two-time national recipient of the National EnergyStar Partner of the Year award for 2014 and 2015. All of Brighton Homes are EnergyStar and HERS rated, so you have the assurance that these environmentally-friendly homes are built to deliver energy efficiency year in and year out.
From Brighton’s website, they offer information on what green building and energy efficiency means in their culture:
What Exactly Makes A Home Green?
Green building means improving the way that homes and homebuilding sites use energy, water, and materials to reduce impacts on human health and the environment. Building a green home means making environmentally-preferable and sustainable decisions throughout the building process-decisions that will minimize the environmental impact of the home while it is being built and over the many years it will be lived in.
Brighton Homes Energy Star Awards
Brighton Homes, an ENERGY STAR partner since 2009, is being honored for its work in building homes built to ENERGY STAR standards for greater energy efficiency. In 2017, Brighton Homes also made the 100% EnergyStar Commitment becoming the only new home builder in the Treasure Valley committed to building 100% EnergyStar Certified homes.
Would you like to visit one of Brighton’s beautiful homes? Call us and we’ll take you for a tour. Brighton has new homes in several great communities around the Treasure Valley, including:
And, though we specialize in East Boise, we represent clients all over the Treasure Valley, both buying and selling. Contact us today @ 208.473.2203 or email @ info@templetonrealestategroup.com
Take a look at one of my all-time favorite homes built by Brighton! Quality build and so many fun and exceptional details:
By Bonnie Way Snider, Licensed Realtor® and Blogger
The Spring selling season is upon us and the Boise real estate market is HOT! Check out our 20 best tips for preparing your home for a quick and profitable sale
20 Tips for Preparing Your House for Sale This Spring [INFOGRAPHIC]
Highlights:
When listing your house for sale your top goal will be to get the home sold for the best price possible!
There are many small projects that you can do to ensure this happens!
The agents at Templeton Real Estate Group will have a list of specific suggestions for getting your house ready for the market and is a great resource for finding local contractors who can help! Call us today at 208-473-2203
![Tips for Preparing Your House for Sale This Spring [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2018/03/20171259/20180323-Tips-For-Selling-STM-ENG-1046x824.jpg)