Another Hit for Potential Boise Homeowners?

Considering buying a house in the Nampa and Boise areas? Here is another good reason to consider buying a home soon. If you have limited resources to buy a home the latest proposal would increase the amount required. Right now houses are the most affordable they have been in a very long time with the interest rates and prices.

This affects you local sellers as well, if Congress does increase the minimum amount of down payment required under FHA loans it makes it harder for first time home owners and anytime you remove potential buyers from the market it is going to slow our housing recovery.

By Alan Zibel, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Republicans in the U.S. House of Representatives are circulating legislation to raise the minimum down payment for loans backed by the Federal Housing Administration, the main source of mortgage money for first- time homebuyers.

Currently, homeowners are able to take out FHA-backed loans with a minimum down payment of 3.5%. A draft bill being circulated by Rep. Judy Biggert (R., Ill.), would raise that minimum to 5% in an effort to stabilize the agency's finances.

Republicans aim to redesign government mortgage programs to strike "the right balance for taxpayers and homebuyers," Biggert said in a statement Monday.

A House subcommittee on Wednesday is scheduled to discuss a draft version of the bill, which would also make changes to several other government housing programs.

House Republicans have made scaling back the government's role in the housing market a key priority. However, they are encountering resistance from the housing industry, which believes such supports are essential to keep the moribund housing market from falling further.

Jaret Seiberg, a financial policy analyst at MF Global's Washington Research Group, said the bill could be good for private mortgage insurers such as PMI Group Inc. and MGIC Investment Corp., which compete with FHA.

However, he added that it could hurt the housing market in the short term.

"It would make it even harder for first-time buyers to enter the housing market regardless of their incomes or earnings potential," Seiberg wrote in a note to clients.

The FHA doesn't make loans but insures them against default. The agency's volume grew rapidly in the wake of the mortgage bust and had critics warning it would need government funding for the first time in its history. The Obama administration hiked fees and tightened lending standards, and an audit released last year showed the agency's finances stabilizing.

Loans backed by the FHA made up nearly 18% of new loans made in the first quarter, according to trade publication Inside Mortgage Finance.

 

April's PTC Index for the Boise, Nampa Metro Area

This is a great indicator of the vibrancy of our local real estate market for the combined Ada and Canyon Counties. It is calculated by Pioneer Title Company and can be a good reference point. It uses nine key real estate variables to come up with a single index number.

For perspective, during the most active point of our real estate boom in 2005 the index would have been 225, in January of 2010 it dropped to its lowest point of 28. It is showing a slight increase from last month's number of 94.

April 2011

Building Permits	123
New Home Sales	80
Existing Home Sales	773
Refinance	425
Average Sales Price	129294
Financial-Bond Market(10-yr Treasury)	3.46
Days on Market	91
Distressed(Short Sales and REO)	3919
Notices of Default	493
PTC Index	102

So we are making progress, slow but sure.

Boise,Nampa Listen Up! Even the Naysayers Are Saying To Buy Now!

Another great article from the folks at KCM Blog!

• Business School professors Eli Beracha ofEast Carolina University and Ken H. Johnson of Florida International Universityhave done extensive research on which makes more sense financially: to rent or own a home. They published, Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? In their paper, the professors do not dispute the social benefits of homeownership:

“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

What the professors were proposing is that homeownership is not a better investment strategy than renting. The first of the two major findings was:

“After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period… Individuals, on average, were better off in economic terms to have rented for most of the years in the study period. This first result is strongly dependent upon fiscally disciplined individuals that, without fail, reinvest any residual savings from renting.”

Historically, people do not actually reinvest savings “without fail”.  Check here for the findings of a recent study from The Joint Center for Housing Studies at Harvard.

The second major finding says it all. According to both professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Two researchers set out to prove that homeownership is not a good financial decision. After completing that research, they have determined that now is the time to buy. What more needs to be said?

 

Think about this next time you are following a pilot car!

In the drivers defense he was bumped by a dump truck.

Save time and money with do-it-yourself home improvements

(ARA) - As warm weather rolls in, the for sale signs start going up. Homeowners are increasingly looking for ways to update their living spaces and maintain the value of their homes without completing extensive or expensive renovations.

Whether it's adding a fresh coat of paint to outdated bathroom walls or new hardware to kitchen cabinets, there are many ways homeowners can improve their spaces without spending a lot of time or money.

One of the best resources for do-it-yourself tips is DIY blogs. Bloggers tackle various home projects and document their journey online to help readers overcome their own home improvement hang-ups. With their efficient project know-how, homeowners can find stress-free and cost effective ways to renovate any space.

Efficient Home Transformations

Money Saving Tips - Provided by Sarah of www.ThriftyDecorChick.com

Accent a Room with Borders

Give walls a new look with decorative stencils, wallpaper or papered borders. They are a quick and easy accent that updates any room instantly.

Add Energy Efficiencies to any Home

DIY'ers are discovering that energy efficient homes are not only less expensive to own and maintain, but are also friendlier to the environment. Ways to make the home more energy efficient include using energy-efficient light bulbs, installing ceiling fans and insulating and sealing ducts to maintain the air conditioner.

Clean and Maintain The Furnace

Cleaning and maintaining the furnace once a year can make any home more energy-efficient and lower utility bills. By using washable filters, homeowners can save even more money by simply washing and allowing them to air dry. This cuts down on costs and is better for the environment.

Affordable Projects

Paint

Adding a fresh coat of paint is one of the most inexpensive and impactful changes a homeowner can make. With great innovations in paint like, True Value Hardware's new EasyCare PLATINUM Paint and Primer in One, you can save time and money, making weekend paint jobs hassle-free. Check outwww.TrueValuePaint.com for a full color palette.

Changing Light Fixtures and Hardware

Kitchens and bathrooms can be the easiest rooms to update with a few small changes. Replacing old, outdated light fixtures and cabinet hardware can refresh the kitchen or bath without consuming a ton of money and time with a complete overhaul.

Renovate Old Furniture

Updating an old chair or table is an easy way to spruce up a room. If you're looking for new furniture additions, shop local garage sales and thrift stores for old pieces that can be revitalized with a little sanding, paint and new hardware.

Time Saving Tips - Provided by Brian and Paul of www.HandyGuysPodcast.com

Make a Plan

Set aside time to think through projects and organize your plan of attack prior to jumping in. Utilize great resources for DIY tips on www.StartRightStartHere.comand shop online at www.TrueValue.com for all project needs.

Build Utility Storage Shelves

Building a basic utility shelf is a small project homeowners can do themselves to get organized. Planned shelves will put an end to haphazardly stowing away and stacking things in the garage and basement - unable to be found again.

Quick Fix-it Project Ideas

Replace Old Faucets

Old faucets can make a kitchen or bathroom look dated and dingy. When choosing a new faucet, be sure that it will work with the existing faucet drillings, noting whether they're center set, widespread or single-hole.

Check Your Asphalt Driveway

Seasonal temperature changes can cause asphalt driveways to crack and dip due to water seepage. To sustain durability, be sure to routinely check the driveway and make repairs quickly to avoid further damage. In order to prevent future water seepage, consider sealing the driveway.

Repair Don't Replace

Tears in window screens can be a frequent and frustrating problem. Before deciding to purchase a new screen, assess the damage. If the tears are small, fix them with a screen patch.

Simple Room Solutions

Transform any room into a special haven with these simple fixes:

Kitchen

• Beginner: Brighten the heart of the home by installing new light fixtures.


• Experienced: Strip and repaint furniture to revitalize dated pieces and transform a room.

Bathroom

• Beginner: Clean tile grout to instantly refresh bathroom surfaces.


• Experienced: Update faucets and cabinet hardware.

Living Room

• Beginner: Let more light in by washing windows to remove layers of debris and film.


• Experienced: Install and paint window trim to tie the room together.

Bedroom

• Beginner: Redefine the entire room by adding color, or simply a fresh coat of paint. Use a shade or two lighter than the color of the walls to make a low ceiling seem higher. For high ceilings, use a shade or two darker to make the room feel cozy.


• Experienced: Create a custom stencil template and add a personal touch to your haven by adding a border.

 

Sreamin' Deal In Middleton

Saturday I was gong to mow my lawn and plant tomatoes along with a few other assorted vegetables. But instead I ended up showing a home in Middleton on 3 acres listed for, are you ready for this, $45,000! Yes, it is a manufactured home built in 1991, but it is on a permanent foundation with an attached 2 car garage. The ground does not have water rights but it is flat and very useable. In my opinion it is a screamin deal!  It is a HUD repo and initial bids are due this evening. So I will be writing up an offer for that buyer later today.  Before that though, I am off to write an offer for a cabin in Cascade, I working with an agent from that area since they are located in a different MLS area. It also is a bank repo, and appears to be a good value. It really is a great time to buy with the prices and interest rates both being so low!

Update: My folk's offer on the screamin deal was not accepted, so we know the successful bid was over $50,000. I will be interested to see when it closes how high it went.

Boise-Ada County, It's Getting Better All The Time!

April sales were 5,539 in Ada County, a decrease of 20% compared to April 2010.

However...April 2010 was the final push for the tax credit.  April 2010 sales were 59% ahead of 2009.

Year-to-date 2011 sales are within 3% of YTD 2010.

Historically, April sales increase by an average of just 5% over March.  This year is consistent with that as April sales are 3% higher than March 2011 sales.

Of our total sales in April… 56% were distressed….down 1% from March 2011. (Short sales 19% and REO’s 36%). Distressed sales continue to dominate the market...but do show some decrease in number.

Pending sales at the end of April were 975; and increase of 5% from the end of March. This is four consecutive monthly increases. The percentage of pending sales in distress decreased 4% from March 2011 totaling 48% overall.  This is our second consecutive month’s decrease. This is the first time we’ve been below 50% in 10 months. In 2010, with the expiration of the tax credit, pending sales fell by 350 from April 30 to May 31. A test of our recovery will be the pending sales at the end of this month.

The number of houses available for sale at the end of April was 2,625; unchanged from March  26% less than last year at this time. Currently available inventory compares to February 2006.

At the same time, the percentage of active inventory that is distressed dropped almost 2% from March to 37%.  This is the second consecutive monthly decline and keeps us below the 40% levels set last spring....when we were on the increase.

In Ada County we have 5 months of inventory on hand…historically this number defines a “seller’s market”.  The price category in shortest supply is <$100,000 with 2.5 months available. This is closely followed by the $100,000 to $120,000 with 3.5 months and $120,000 to $159,000 with 4.4 months. These are the lowest numbers in more than a year!

There is also positive news on some of the higher priced inventory; $500,000 to $699,999 inventory dropped by 10 months from the end of March to 13.6.

April median home price decreased held steady; down only $2,000 from March to $135,000, down 10% from April 2010.

New Homes median price for April 2011 was $1212,000, an increase of almost 18% from April 2010.

We continue to “benefit” from inventory levels much lower than national average.

Now we are starting to see a “clearing” of distressed properties, with fewer coming on-line.

From where I sit, we’ve done all that can be done to build sustainability into our local market.  I can even see us having a summer with sales exceeding last year.

The true test ahead of us now is how to prevent numerous federal policy shifts that will stall us in our tracks and erase the gains of the last year.

From the Ada County Association of Realtors, Marc Lebowitz