Real Estate News You Can Use

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Dec. 16, 2018

When's the Best Time to Sell Your House?

Waiting until spring to list your house no longer makes sense. Most listings come to market between April and June, so waiting to list means you'll be met with a ton of competition. Let's get together today to discuss why it makes more sense to list your house now!

 

Posted in Selling
Dec. 16, 2018

Don’t Get Caught in the Rental Trap in 2019

Every year around this time, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying, and you wouldn’t be alone!

According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying in the next 5 years, with 38% planning to buy in the next 2 years!

When those same renters were asked why they disliked renting, 52% said that rising rental costs were their top reason, and 42% of renters believe that their rent will rise every year. The full results of the survey can be seen below:

Don't Get Caught in the Rental Trap in 2019 | MyKCM

It’s no wonder that rising rental costs came in as the top answer! The median asking rent price has risen steadily over the last 30 years, as you can see below!

Don't Get Caught in the Rental Trap in 2019 | MyKCM

There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again… why are they renting?

When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”

If the majority of those who believe they haven’t saved a large enough down payment believe that they need 20% down to buy, that means a large number of renters may be able to buy now!

Bottom Line

If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, let’s get together to help you on your path to homeownership.

Posted in Buying
Dec. 16, 2018

What If I Wait A Year to Buy a Home?

National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Reporthome prices will appreciate by 4.8% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until 2019 To Buy A Home? | MyKCM

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Posted in Buying
Dec. 16, 2018

Economic Slowdown

The experts agree that the next economic slowdown is on its way, but that doesn't mean that the housing market will be affected. Let's get together to go over the differences between an economic slowdown and a housing market crash so that you can make the best real estate decisions for you and your family.

 

Posted in Selling
Dec. 16, 2018

No Bubble Here! How New Mortgage Standards Are Helping

Real estate is shifting to a more normal market; the days of national home appreciation topping 6% annually are over and inventories are increasing which is causing bidding wars to almost disappear. Some see these as signs that the market will soon come tumbling down as it did in 2008.

As it becomes easier for buyers to obtain mortgages, many are suggesting that this is definite proof that banks are repeating the same mistakes they made a decade ago. Today, we want to assure everyone that we are not heading to another housing “bubble & bust.”

Each month, the Mortgage Bankers’ Association (MBA) releases a measurement which indicates the availability of mortgage credit known as the Mortgage Credit Availability Index (MCAI). According to the MBA:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.).” *

The higher the measurement, the easier it is to get a mortgage. During the buildup to the last housing bubble, the measurement sat at around 400. In 2005 and 2006, the measurement more than doubled to over 800 and was still at almost 600 in 2007. When the market crashed in 2008, the index fell to just over 100.

Over the last decade, as credit began to ease, the index increased to where it is today at 186.7 – still less than half of what it was prior to the buildup of last decade and less than one-quarter of where it was during the bubble.

Here is a graph depicting this information (remember, the higher the index, the easier it was to get a mortgage):

No Bubble Here! How New Mortgage Standards Are Helping | MyKCM

Bottom Line

Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.

*For more information on the MCAI, including methodology, FAQs, and other helpful resources, please click here.

Posted in Buying, Selling
Dec. 8, 2018

December Events

Eagle Watching Cruises
All December
https://www.cdaresort.com/discover/cruises/tickets

Barbecue Dinner Menu
Every Saturday, 4:00 pm - 9:00 pm
https://www.cdacasino.com/event/bbq-dinner-buffet/all/
 
Journey to the North Pole Cruises
All December
https://www.cdaresort.com/discover/cruises/tickets
 
Ugly Sweater Run
December 2nd, 10:30 am - 1:30 pm
https://www.coeurdalene.org/cda-events/ugly-sweater-run-2/
   
New! International Flavors Buffet
Every Sunday, 4:00 pm - 8:00 pm
https://www.cdacasino.com/event/international-flavors-dinner-buffet/2018-06-10/
 
Holiday Murder on the Disorient
December 7 & 8, 6:30 pm - 10:00 pm
Coeur d’Alene Cellars Winery
 
Traditions of Christmas
December 7-23
http://www.traditionsofchristmasnw.com/
 
Downtown Live Neigh-tivity
December 8th, 1:00 pm - 6:00 pm
Sherman Square Park (316 Sherman Avenue)
 
Affiniti, A Celtic Christmas
December 12th, 7:00 pm - 9:30 pm
http://www.kroccda.org/calendar.html
 
Christmas for Kids
December 15th, 10:00 am - 12:00 pm
http://www.thevineidaho.org/events
 
Clarion Brass: This Is What Christmas Sounds Like
December 18th, 7:30 pm - 9:30 pm
http://www.kroccda.org/calendar.html
 
12 Skates of Christmas
December 21st – January 1st, Noon – 6:30pm
https://www.frontiericearena.org/page/show/3728570-12-skates-of-christmas-
 
Ski with Santa at Schweitzer Mountain Resort
December 23rd, 1:00 pm - 3:00 pm
https://www.schweitzer.com/event/ski-with-santa/
 
Christmas Festivities at Silver Mountain Resort
December 24th, 8:00 am - December 25th, 5:00 pm
https://www.silvermt.com/
 
Santa’s Balloon Parade at Schweitzer Mountain Resort
December 24th, 1:00 pm - 5:00 pm
https://www.schweitzer.com/event/santa-balloon-parade/
 
Christmas Day Buffet
December 25th, 12:00 pm - 5:00 pm
http://cdainn.com/
 
New Year’s Celebration- A Diamond Soiree
December 31st, 6:00 pm
https://www.cdaresort.com/discover/activities/new_years
 
New year’s Eve Parties at Schweitzer Mountain Resort
December 31st, 7:00 pm - January 1st, 1:00 am
https://www.schweitzer.com/event/new-years-eve-parties/
 
New Year’s Eve at the Inn!
December 31st, 7:00 pm - 11:30 pm
http://cdainn.com/
 
New Year’s Eve Cruises
December 31st
https://www.cdaresort.com/discover/activities/new_years

Posted in Idaho Events
Dec. 8, 2018

How Supply and Demand Impacts Real Estate Values

The price of any item is determined by the supply of that item, as well as the demand for that item in its market. The same is true in real estate. As the inventory of homes available for sale shrinks, and the demand that buyers have for those homes continues to grow, prices increase. Let's get together to discuss the supply and demand of homes in our market!

 

Posted in Buying, Selling
Dec. 8, 2018

4 Reasons to Buy A Home This Winter!

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase 

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase in 2019.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage

There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person building that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on With Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Posted in Buying
Dec. 8, 2018

Rising Home Prices Help Build Family Wealth

As home prices continue to appreciate, many potential buyers and sellers aren't sure what it really means for them. It's important to understand, however, that rising prices also means rising equity. If you're wondering what home price appreciation means for you, let's get together to discuss building your wealth today!

Posted in Buying, Selling
Dec. 8, 2018

Homeowners Aged 65+ Have 48x More Net Worth Than Renters

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data covers responses from 2013-2016.

The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

There are many who see that statistic and point toward how broad the range of respondents are for the Federal Reserve survey. Their study includes all economic and social groups and also includes all age groups. The argument is that older respondents have a higher likelihood of being homeowners, while the homeownership rate among younger survey takers is much lower.

Recently, the Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference in net worth between homeowners and renters at this age group was actually 47.5 times greater!

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | MyKCM

Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36. Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated.

It is no surprise that lifelong-renters have had a hard time accruing net worth as the latest Census report shows that the Median Asking Rent has been climbing consistently over the last 30 years.

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | MyKCM

Bottom Line

As a homeowner you put your monthly mortgage payment to work for you, building your net worth with every payment.

Posted in Buying