Boise Meridian Eagle Idaho Real Estate - Homes Sales and Boise Investment Properties

Michael Hon, CEO, The Iron Eagle Realty Team Assoc. Broker, Silvercreek RG The Iron Eagle Realty Team is a Full Service Real Estate Company. Our mission is to assist our clients in the successful acquisition and sale of their personal homes and/or investment properties in the Boise Idaho Real Estate Market. We have successfully helped our clients with short sales, investment properties and foreclosed / bank owned properties in the Boise Idaho Real Estate Market.

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Sunday, March 01, 2015

Fewer homes for sale pushes up US house prices in December

U.S. home prices rose in December at a faster pace than the previous month, likely because of a much smaller number of homes for sale.

The Standard & Poor's/Case-Shiller 20-city home price index, released Tuesday, increased 4.5 percent in December compared with 12 months earlier. That is up from 4.3 percent in November and the same as October's annual increase. The small gain comes after price increases had slowed for 12 straight months.

Americans are listing fewer homes for sale, pushing up prices and keeping many houses out of reach for would-be buyers. Home prices are rising faster than most Americans' wages, slowing sales even as hiring strengthens, consumer confidence grows and mortgages stay low.

Still, the smaller price gains are more sustainable and less harmful for potential buyers than last year's double-digit increases.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The December figures are the latest available.

The number of homes for sale in December was equal to just 4.4 months of sales, the lowest level in nearly two years. Six months of supply is typical for a healthy housing market.

"The housing recovery is faltering," said David Blitzer, chairman of the S&P's index committee. "While prices and sales of existing homes are close to normal, construction and new home sales remain weak."

All 20 cities reported higher prices than a year earlier. The biggest gains were in San Francisco, where prices rose 9.3 percent, and Miami, where they jumped 8.4 percent. Chicago reported the smallest gain, at 1.3 percent.

December's price rise is far ahead of wage gains. Average hourly wages rose at a faster pace in January compared with the previous month, but were just 2.2 percent higher than a year ago. Pay gains have been stuck largely at that level for most of the five years since the recession.

Sales of existing homes fell last year after two years of steady recovery. That has led many economists to forecast a rebound in sales in 2015, but so far there are few signs of it.

In January, existing home sales tumbled 4.9 percent to a seasonally adjusted annual rate of 4.82 million, the slowest pace in nine months, the National Association of Realtors said Monday.

And the construction of new homes fell 2 percent in January, the Commerce Department said last week.

Lower mortgage rates and strong job growth may yet spur more sales later this year. The average 30-year fixed mortgage rate was 3.76 percent last week, according to the mortgage giant Freddie Mac. That has ticked up in recent weeks, but is far below the 4.33 percent average from a year ago.

Employers have ramped up hiring, encouraged by strong growth last spring and summer. The U.S. economy added more than 1 million jobs from November through January, the fastest three-month pace in 17 years. More Americans earning paychecks should eventually push home sales higher.

By CHRISTOPHER S. RUGABER, Associated Press

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

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Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Sunday, February 08, 2015

With Tax Law Changes, Foreign Investment Could Take Off

With Tax Law Changes, Foreign Investment Could Take Off
Changes to FIRPTA could open up the floodgates for cross-border capital

By Les Shaver, www.multifamilyexecutive.com

The American apartment market has seen a dramatic rise in the influx of foreign capital over the past decade. But the panelists on the “Across the Universe - Where Is the Capital Coming From?” panel at National Multifamily Housing Council’s Apartment Strategies Conference expect an even bigger infusion if policymakers address tax law.

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), which imposes income tax on foreign persons disposing of United States real estate, basically penalizes foreign investors for spending money in the United States.

If there is a change in that law, David Schwartz, CEO of Waterton Associates, thinks international capital flows could dramatically increase.

“If FIRPTA goes away, I think it opens the floodgates of capital even if you're just planting seeds today [of investment with potential foreign investors],” he said. “If there's no FIRPTA in two to three years. that money could be coming here.”

Land of Opportunity
The opportunity with foreign investors is real because of volatility in many other areas of the world, according to Schwartz. “The U.S is a safe haven,” he said. But just because foreign investors are interested in investing in American multifamily doesn’t mean they don’t hold some reservations. Clyde Holland, chairman and CEO, Holland Partner Group, claimed that reporting and communication can help assuage these fears.

Holland said that most of the foreign investors he has worked with prefer longer hold times so it’s important to develop a long-term strategic plan.

To help these investors gain a comfort level, Schwartz claimed it’s important to visit with them and educate them on their turf. “You need a much larger educational component to familiarize investors,” he said.

That education is important because, in some cases, the apartments that investors will be putting their money into can vary greatly from the multifamily they’re accustomed to in their home countries. For instance, in Canada rental apartments are often older concrete structures from the 60’s and 70’s.

“In Canada, the for-rent market is different,” said Janice Lin, director of the Canada Pension Plan Investment Board. “Class A here [in the U.S.] is condo there.”

But, on the flipside, if a country has a vibrant apartment market, it can make the sales job easier. “The Chinese really want to come to the U.S.,” Schwartz says. “They love it. They are really familiar with the concept of apartment housing.”

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, February 05, 2015

Millennials are finally entering home-buying market

Millennials are finally entering home-buying market

Call them the prodigal millennials: Statistical measures and anecdotal reports suggest that young couples and singles in their late 20s and early 30s have begun making a belated entry into the home-buying market, pushed by mortgage rates in the mid-3% range, government efforts to ease credit requirements and deep frustrations at having to pay rising rents without creating equity.

Listen to Kathleen Hart, who just bought a condo unit with her husband, Devin Wall, that looks out on the Columbia River in Wenatchee, Wash.: "We were just tired of renting, tired of sharing with roommates and not having a place of our own. Finally the numbers added up."

Erin Beasley and her fiance closed on a condo in the Capitol Hill area of Washington, D.C., in January. "With the way rents kept on going," she said, "we realized it was time" after five years as tenants. "With renting, at some point you get really tired of it — you want to own, be able to make changes" that suit you, not some landlord.

Hart and Beasley are part of the leading edge of the massive millennial demographic bulge that has been missing in action on home buying since the end of the Great Recession. Instead of representing the 38% to 40% of purchases that real estate industry economists say would have been expected for first-timers, they've lagged behind in market share, sometimes by as much as 10 percentage points. But new signs are emerging that hint that maybe the conditions finally are right for them to shop and buy:

•Redfin, a national real estate brokerage, said that first-time buyers accounted for 57% of home tours conducted by its agents mid-month — the highest rate in recent years. Home-purchase education class requests, typically dominated by first-timers, jumped 27% in January over a year earlier. "I think it is significant," Redfin chief economist Nela Richardson said. "They are sticking a toe in the water."

•The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which monthly polls 2,000 realty agents nationwide, reported that first-time buyer activity has started to increase much earlier than is typical seasonally. First-timers accounted for 36.3% of home purchases in December, according to the survey.

•Anecdotal reports from realty brokers around the country also point to exceptional activity in the last few weeks. Gary Kassan, an agent with Pinnacle Estate Properties in the Los Angeles area, says nearly half of his current clients are first-time buyers. Martha Floyd, an agent with McEnearney Associates Inc. Realtors in McLean, Va., said she is working with "an unusually high" number of young, first-time buyers. "I think there are green shoots here," she said, especially in contrast with a year ago.

Assuming these early impressions could point to a trend, what's driving the action? The decline in interest rates, high rents and sheer pent-up demand play major roles.

But there are other factors that could be at work. In the last few weeks, key sources of financing for entry-level buyers — the Federal Housing Administration and giant investors Fannie Mae and Freddie Mac — have announced consumer-friendly improvements to their rules. The FHA cut its punitively high upfront mortgage insurance premiums and Fannie and Freddie reduced minimum down payments to 3% from 5%.

Price increases on homes also have moderated in many areas, improving affordability. Plus many younger buyers have discovered the wide spectrum of special financing assistance programs open to them through state and local housing agencies.

Hart and her husband made use of one of the Washington State Housing Finance Commission's buyer assistance programs, which provides second-mortgage loans with zero interest rates to help with down payments and closing costs. Dozens of state agencies across the country offer help for first-timers, often with generous qualifying income limits.

Bottom line: Nobody knows yet whether or how long the uptick in first-time buyer activity will last, but there's no question that market conditions are encouraging. It just might be the right time.

By Kenneth R. Harney, Los Angeles Times

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, January 16, 2015

What Slowdown? Rent Growth Accelerated in 2014

What Slowdown? Rent Growth Accelerated in 2014
Rents grew a healthy 4.7 percent last year, the highest level since 2011, according to MPF Research.
By: Les Shaver, Multifamily Executive

Apparently fears of the apartment market slowing were overblown, according to a recent report from RealPage's MPF Research.

Rent growth accelerated to 4.7 percent in 2014, the highest figure since 2011. Usually the pace of rent growth slows after the first couple of years of a cycle, but this upturn is behaving differently, driven by strong job growth in higher-paying jobs in 2014.

“The overall economic performance was stronger than typical at this stage of the recovery,” said MPF Research vice president Greg Willett. “Job production went up 20 to 25 percent over the previous three or four years. In past years, 60 percent of those jobs were in low-paying industries. In 2014, 60 percent of those jobs were in higher paying industries.”

One surprising driver of growth was the fourth quarter, when things usually slow. Rents actually rose 0.6 percent during the last quarter of 2014, which was only the second time in the last decade rents rose so much at the tail-end of the year (the other time was 2005).

“The overall economic performance was stronger,” Willett says. “And, certainly if you compare it to last year, the weather was really cooperative, as well.”

Absorbing the Supply
The industry’s strong performance in 2014 came despite a 14-year high of 246,579 new completions in the nation’s 100 largest metros. But with demand at 268,532 units, the supply/demand equation was still in favor of landlords, as occupancy climbed 30 basis points to 95.3 percent.

Supply should increase this year as well. During 2015, 290,145 new units are expected to be delivered, which will put more pressure on apartment owners. But MPF expects actual deliveries to be less than that because of construction delays due to labor shortages in many markets. As such, the research firm forecasts 2015 new supply to be around 250,000 to 260,000 units, which will be on par with 2014’s tally.

MPF expects the market to be able to absorb those 250,000 to 260,000 new units. Overall, MPF expects rent growth of 3.5 to 4 percent for the year ahead. But the growth won’t be even.

“I do think we are in late innings for the urban core/really expensive apartments,” Willett says. “There just aren’t that many households out there who can afford that. Those units tend to be built for Millennials, but honestly they’re too expensive for them.”

But in other spots, outside of the urban core, 2015 looks a lot better.

“We still have a lot of runway for suburban or even urban fringe, where you’re just coming down from that 'Main and Main' price point by 10 or 20 percent,” Willett says. “The middle market is still going strong. The concern about the middle market was affordability. But if wage growth is getting better, maybe that’s not as big a problem as we thought it should be.”

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, December 23, 2014

November (Apartment) Sales are Slow, But Cap Rates Still Fall

November Sales are Slow, But Cap Rates Still Fall
So far this year, apartment transactions have totaled $96.9 billion.
By: Les Shaver, MultiFamily Executive

As the year winds down and investors gear up for 2015, apartment sales slowed in November.

Apartment transactions totaled $8.7 billion in the month, which was a 14 percent year-over-year decline, according to New York based Real Capital Analytics (RCA). The sale of garden communities fell 5 percent and mid- and high-rise sales dropped 27 percent.
Though the pace of sales slowed, cap rates continued to compress in November, dropping 10 basis points to 5.8 percent nationally. In the third quarter, cap rates hit record lows.

For 2014, the apartment sector has accounted for $96.9 billion, which is up 7 percent from last year.

“The sector is well on track to beat the $102.5 billion of volume recorded in 2013, and may top the all-time high of $105.2 billion recorded in 2007 but much of it depends on activity in December,” RCA said in the report.

Cap Rate Compression Since 2010

The deals closed in December to date, and the pipeline of end-of-year deals, has been modest, RCA reports. But a slowdown in the last two months of the year may actually be a sign of a strong market, unlike the spike in volumes seen earlier in the recovery

“We typically see a push to get deals out the door early in the fourth quarter in an effort to get them done before the end of the year,” says Joshua Goldfarb, managing partner of Atlanta-based Multi Housing Advisors. “In the holiday period, you see less new offerings and a lot of closings. In 2010 and 2011, we saw tremendous volume in the fourth quarter, but that was banks who wanted to get toxic assets off of their balance sheets by the end of year."

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, November 14, 2014

Multifamily Holding Strong!

Multifamily Holding Strong!

The national apartment market strength is not slowing down though many predicted it would. As national effective rent growth reached a 35 month high in September, occupancy remained above 95 %.

September’s effective rent growth of 4.3%, the strongest since the 4.4% of October 2011, is a 22-basis-point (bps) increase from August 2014's 4.1% and a 131-bps difference from September 2013's 3.0%.

Year-to-date (YTD) effective rent growth decreased by 2 bps to 5.5% in September, which is not surprising given the trends of the recovery period. YTD rent growth has peaked in August or September during the past four years and then declined somewhat before the end of the year.

Meanwhile, YTD effective rent growth was stronger than any other post-recession year for the sixth straight month and is still stronger than the 5.2% recorded for the first nine months of 2010 and 2011.

National occupancy declined by 10 basis points from August’s 95.2% to 95.1%, the second highest rate since Axiometrics started reporting on a monthly basis in April 2008.

Historically, occupancy peaks in August or September, so the market appears to be following its seasonal pattern, but at a higher level.

This apartment cycle – which began in 2010 – is already longer than the last one (2004 -2008), and the market continues to perform strongly. The apartment sector’s strength is surprising to many analysts, especially so deep into the current cycle.

The main factors driving this cycle’s second peak include the growing number of prime renters, those between 20-34 years old, and the fact that these renters are unwilling or unable to purchase homes.

The population in the prime renter cohort is larger than in the last cycle. Also, the home ownership rate has decreased from the last cycle. The prime renter age group is either not willing to or not able to purchase a home.

Ten years ago, the prime renter age group population (red bars in the chart below) was smaller. This cohort was also more interested in owning homes.

Another reason for the spike in rent growth at the beginning of the current cycle is that supply and demand were misaligned. Rent growth really started to pick up when the economic recovery began and job growth accelerated. Meanwhile, little, if any, new apartment supply was being delivered. Now that new units are being delivered, job growth and rent growth are more in balance.

-Axiometrics Inc.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, October 03, 2014

Looking to Move to Boise Idaho or Invest in Boise Idaho Real Estate? Check out this video!

Check out this REALLY cool video from Greenbelt Magazine. If you are looking to move to Boise Idaho, you'll see a host of reasons to do so in this video. If you are looking for a home in Boise Idaho or an investment property in Boise Idaho, please call or email us. We can help you!

Friday, September 26, 2014

Home Selling Tips Every Seller Should Know

Home Selling Tips Every Seller Should Know

Price Your Home Realistically From the Start

94.3 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

The largest number of showings will occur in the first couple of weeks, so don’t turn these potential buyers off with an unrealistically high price!

Keep Your House Clean, Tidy and De-cluttered

91.4 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

It pays to keep your home in excellent shape at all times. You never know when a buyer might walk through the front door!

Work With an Agent Who Excels at Online Marketing

90.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Work with an agent who will do a good job marketing your home online. Your agent should take at least 6 listing photos and write a compelling listing description for your home.

Make It Easy to Show Your Home

90.3 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

Make it as easy as possible for agents to show your home to clients. Don’t require appointments to be made weeks in advance or severely limit possible showing times.

Don’t Sign With an Unqualified Buyer

87.8 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Don’t sign a purchase agreement with an unqualified buyer. It’s not unreasonable to expect buyers to bring pre-approval letters (or proof of funds for cash purchases) to show they can buy your home.

Listen to Your Agent!

83.9 percent of agents say this is a very important tip

0.8 percent of agents don’t recommend this tip

Listen to your real estate agent! Find an agent you can trust and follow their advice and recommendations as closely as you can.

Make Small Upgrades to Your Home

83.6 percent of agents say this is a very important tip

0.2 percent of agents don’t recommend this tip

Make small upgrades to help your home sell for top dollar. These upgrades can include applying a fresh coat of paint, replacing door handles, curtains and cabinet hardware, fixing leaky faucets and cleaning the grout.

Work With an Agent Who Follows the Competition

82.4 percent of agents say this is a very important tip

1.4 percent of agents don’t recommend this tip

Work with an agent that will closely follow your competition. Your agent must be familiar with other properties on the market and know the comps in your neighborhood.

Stage Your Home’s Exterior

76.0 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

Stage the exterior of your home: Spruce up the landscaping, trim vegetation, clean walkways of debris and apply fresh coats of paint to the house, fence and deck.

Don’t Insist on the Asking Price

72.0 percent of agents say this is a very important tip

3.0 percent of agents don’t recommend this tip

Don’t insist on selling your house for your asking price, its appraised value, the tax assessor’s estimate, or what you paid for it – your house is ultimately worth what the buyer is willing to pay for it!

Alert Family and Friends

67.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Alert your friends, relatives and neighbors that your home is on the market via email and social media. They may forward your home’s listing to buyers they know.

Make Your Home Move-In Ready

66.6 percent of agents say this is a very important tip

0.9 percent of agents don’t recommend this tip

Make your home move-in ready before it hits the market, so buyers know they won’t have a to-do list if they buy it.

Brighten Up Your Home

64.8 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Maximize the amount of light in your home. Take down drapes, clean windows and cut bushes to let sunshine in.

Clear Out Your Closets

63.1 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Because storage space is an important consideration for buyers, take half of the stuff out of your closets and neatly organize the rest.

Don’t Take the First Offer

59.4 percent of agents say this is a very important tip

3.4 percent of agents don’t recommend this tip

Don’t get over-excited when you get an offer! Examine each offer carefully and take your time deciding if you want to accept it.

De-Personalize Your Home

57.9 percent of agents say this is a very important tip

2.6 percent of agents don’t recommend this tip

Personal items make it harder for buyers to imagine themselves living in your home. Put family photos, trophies, memorabilia and other personal keepsakes in storage.

Don’t Over-Upgrade

56.6 percent of agents say this is a very important tip

1.7 percent of agents don’t recommend this tip

You probably won’t get your money back if you do a huge improvement project just before you put your house on the market.

Conceal Your Pets

52.8 percent of agents say this is a very important tip

5.5 percent of agents don’t recommend this tip

Pets give the impression your house isn’t clean, so hide them, their litter boxes, food dishes and toys during showings.

Don’t Work With the First Agent You Find

51.8 percent of agents say this is a very important tip

5.9 percent of agents don’t recommend this tip

Interview multiple agents before choosing one to work with. Select your agent based on their marketing plan, experience, work ethic and communication skills.

Hire a Professional Listing Photographer

37.1 percent of agents say this is a very important tip

16.4 percent of agents don’t recommend this tip

Hire a professional photographer to take pictures of your home if your agent doesn’t do so. Professional listing photos only cost $100-300 and can increase your home’s sale price by up to $19,000.

Throw Buyers a Bone to Close Escrow Quickly

29.5 percent of agents say this is a very important tip

10.8 percent of agents don’t recommend this tip

If you want a speedy and hassle-free escrow, throw your buyer a bone (like an early closing or a one-year home warranty) if they ask for one. You want to be in their good graces during escrow and after the sale.

Offer Up Extras to the Buyers

17.0 percent of agents say this is a very important tip

14.7 percent of agents don’t recommend this tip

Offer to leave behind items as extras, like high-end appliances and electronics, or if you live on a golf course, your golf cart.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, May 01, 2014

Thinking of Buying a Vacation/Retirement Home? Why Wait?

by The KCM Crew on April 15, 2014 in For Buyers, Interest Rates

The sales of vacation homes skyrocketed last year. A recent study also revealed that 25% of those surveyed said they’d likely buy a second home, such as a vacation or beach house, to use during retirement. For many Baby Boomers, the idea of finally purchasing that vacation home (that they may eventually use in retirement) makes more and more sense as the economy improves and the housing market recovers.

If your family is thinking about purchasing that second home, now may be the perfect time. Prices are still great. If you decide to lease the property until you’re ready to occupy it full time, the rental market in most areas is very strong. And you can still get a great mortgage interest rate.

But current mortgage rates won’t last forever…

According to FreddieMac, the interest rate for a 30 year fixed rate mortgage at the beginning of April was 4.4%. However, FreddieMac predicts that mortgage rates will steadily climb over the next six quarters.

Let’s assume you want to purchase a home for $500,000 with a 20% down payment ($100,000). That would leave you with a $400,000 mortgage. What happens if you wait to buy this dream house?

Prices are projected to increase over the next year and a half. However, for this example, let’s assume prices remain the same. Your mortgage payment will still increase as mortgage rates climb to more historically normal levels.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Monday, February 03, 2014

5 Ways to Pick the Perfect Time to Sell

I found this article on Trulia by Tara-Nicholle Nelson on January 29th, 2014 about when you should think about putting your Boise, Eagle, Meridian or Star home on the real estate market.

Smart sellers spend a whole lot of time and energy strategizing about how to sell their homes for top dollar. They factor in buyer demand, the competition, the job market, the mortgage market and their agent’s track record. And that doesn’t even account for all the time spent understand recent home sales in the area as an indicator of how local buyers will react to this listing.

Many a smart seller will also try to time their listing just right, too. And most often this looks like waiting until they feel buyers are sufficiently ready, willing, and able to pay a good price for the property. One timing consideration that sometimes gets short shrift is this: the calendar.

There’s a season for everything, as you might have heard. And recent Trulia data revealed some powerful geographically-specific seasonal trends in search activity for homes, adding proof to what agents have long known – the calendar portends various shifts in buyer activity, which sellers need to note. If you’re gearing up to list your home for sale, you should definitely take advantage of this interactive tool we’ve created to help you understand how these shifts play out in your area, and connect with your agent to discuss whether and how you might want to factor that into your home sale action plan.

But there are also a number of calendar-based factors you should just be thoughtful about as you put your plan for selling together. Here are a handful of calendars that should be – and stay – on every home seller’s radar screen:

1. The Academic Calendar. Families with school-aged children often find it less disruptive to house hunt in the late Spring/early Summer with the aim of moving in before school starts. Of course, we all know what they say about the best laid plans, so by no means should you let this stop you from listing your home at another time of year. Just know that demand for homes with convenient proximity to strong schools can uptick during the summer school break and around other times of year when kids are not in school.

2. The Tax Calendar. I cannot count the number of relatively unmotivated, looky-loo type buyers I’ve worked with over the years who got sudden, intense motivation from a massive, looming tax bill. For instance, many new professionals will seek to close escrow on homes between the time they graduate and the end of that same year, in an effort to deduct their closing costs and mortgage interest from their newly large incomes and avoid a big tax bill the following April. Similarly, just after tax time in April, a flood of newly motivated buyers come into the market, advised by their CPAs that the mortgage interest deduction is their best bet for not having to write as big a check to the IRS next year.

Fortunately for sellers, more buyers and more motivation means more demand and – all other things being equal – can translate into a faster sale at a higher price than at other times of the year.

3. The Weather Calendar. Many sellers who live in cold-weather climates are aware that wintry weather conditions can dramatically cut down on the numbers of buyers who are out viewing properties. This is why buyer searches for homes on Trulia peak earliest, in January, in warm-weather states like Hawaii and Florida – and not until after the Spring thaws in the Midwest, the South, the northeast and most of the West.

But what’s not as obvious is that the combination of what’s happening on the weather calendar and the specific features of your home can interact to impact your home’s prospects for sale – and its ultimate sale price. Behavioral economics researchers have found that homes with swimming pools sell for more in the summertime than they do in the winter. “When it is sweltering outside, a swimming pool just looks attractive. There’s an emotional connection because it reminds us of fun times we have in the summer,” said Jaren Pope, one of the study’s authors and an assistant professor of economics at Brigham Young University.

So, if you’re selling a home with ski slope access in the summer, you might want to paint the picture of a cozy, fun-filled winter by staging the place with ski gear and other items that help prospective buyers visualize how much fun they’ll have when winter comes. And vice versa -if you’re selling a pool house in the winter, consider making sure it is steamy and heated, if it has those features. Stage it with lounges, towels, lights – anything that showcases the pool to offset cold-weather buyer’s psychological tendency to discount the appeal of a pool in the winter.

4. The Holiday Calendar. During the holidays, many buyers simply prefer to spend their downtime celebrating with family and friends vs. house hunting, especially in locales where the winters are wet or cold. Our listing search data backs this up: nationwide, December is the slowest month of the year for home searches, and November is the second-slowest.

Does this mean the holidays are a bad time to have your house on the market? Not necessarily: some homes just show beautifully when all lit up and tastefully dressed up for the holidays. And the truth is that there is a hardy contingent of buyers motivated to close by year’s end for tax purposes, every year in every market. While buyers might be fewer in number, those who will brave rain, sleet and snow and forego holiday parties to house hunt can be some of the most motivated buyers of all.

5. The Gregorian Calendar (the regular old January through December calendar, that is). A survey just released by Fidelity Investments revealed that 54% of Americans said they typically consider setting New Year’s Resolutions related to their personal finances. This year, 26 percent of respondents said they are in a better financial situation today than last year (only 19 percent said so in 2012) and 28 percent say they are less in debt (vs. 25 percent in 2012).

Home buying tends to be a popular resolution among those with money on their minds at this time of year – and also among people looking forward to career promotions, developing their love and family relationships or relocating to a new home town. Make sure your home is well-represented on sites like Trulia at the beginning of the year (i.e., now!), when these life and financial change visionaries start searching the web for their next nest.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, January 14, 2014

3 things to know about interest rates in 2014

Found a great article on Interest Rates for 2014 on housingwire.com. This definitely pertains to investment properties in Boise ID.

3 things to know about interest rates in 2014
Whether they rise or not, things are going to change

By Trey Garrison January 10, 2014 5:07PM

Interest rates will go up. Or they will stay the same. One of those two things will definitely happen in 2014, economists say, and some lenders and investors may have trouble adjusting to the change.

"We think rates are generally headed up. We have a growing economy both here and aboard,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association (MBA). "We’re going to get some differing data like today’s jobs report which was off, but the next jobs report may see employment up. We are anticipating the job market is going to grow in 2014 and the recovery will continue."

Further, he said, a longer-term factor will be that a growing federal deficit will put upward pressure on rates. And third, the Federal Reserve has already made it clear that if U-3 unemployment goes below 6.5%, it will let rates rise.

"We expect that in the third quarter the Fed will stop buying MBS and Treasurys, and start raising interest rates," Frantantoni said.

MBA is projecting interest rates on the 10-year Treasury yield to go from 3% in the first quarter of 2014 to 3.3% by fourth quarter of 2014, averaging 3.2% for the year, and then creeping up to 3.5% by the last two quarters 2015, averaging 3.4% for 2015.

MBA projects that 30-year fixed mortgage rates will go from 4.7% in the first quarter 2014 to 5.1% by the end of the year, and continuing a slow rise to 5.3% by the end of 2015.

Conversely, economists at international macro-economic research firm Capital Economics say they don’t expect interest rates to rise and that the Fed will keep a tight, tight leash on rates through 2014.

"The world economy has entered 2014 with a lot more momentum than it had a year ago. Business and consumer confidence have improved and unemployment is falling rapidly in several countries. However, while this should eventually prompt central bankers to raise interest rates, we do not expect significant hikes this year," the firm states in its Global Central Bank Watch report. "Instead, the Fed and Bank of England are likely to leave rates unchanged even after unemployment falls below their current thresholds, while both the ECB and the Bank of Japan look set to announce additional policy stimulus."

"The acceleration in growth over the past twelve months or so has been particularly strong in advanced economies In principle, this should pave the way for policy- makers to raise official rates from their current exceptionally low levels, particularly given that some central banks – notably the Fed and Bank of England – have explicitly linked future hikes to progress in reducing unemployment," the Capital Economics report states. "In practice, though, the four major central banks in advanced economies are likely to continue to tread very carefully in withdrawing stimulus, let alone actually tightening policy."

One big concern outside the housing and mortgage universe is that if interest rates rise too high, it could essentially bankrupt the U.S. treasury. The Fed is now printing 29 cents for every dollar the U.S. government spends, and servicing the national $17.3 trillion debt is costly even with low interest rates.

A study last fall by the bipartisan Committee for a Responsible Federal Budget said total interest payments on the federal debt in 2013 were approximately $255 billion. That’s based on the Treasury paying 0.01% on three-month bills and 2.98% on 10-year notes, as opposed to the historical average of 3.3% and 5.2 % respectively.

Frantantoni said typically the Fed has made it clear to the Treasury that it will focus on price stability rather than financing the debt, although he acknowledges there is a concern that interest payments on outstanding federal debt could be an issue. Economic growth concurrent with rising interest rates would serve to ameliorate these concerns through increased tax revenues and stronger job growth.

"We’ve had a couple of unusual years, and a lot of folks in the Fed would like to get back to the role of just minding monetary policy,” he said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, August 06, 2013

Just Listed - Fully Leased Fourplex in Boise, Like New 6%+ cap rate

Asking $379,000; priced at a 6% plus cap rate.

We just listed this Boise Idaho Investment Property; Fully leased, like new fourplex in Central Boise. Built in 2005, close to St. Alphonsus Regional Medical Center, Boise Towne Square Mall and freeway access. Consistently rented in a well maintained fourplex development. Buyer's choice of property management. This will not last! BTVAI

Tuesday, July 30, 2013

Prices and Rates and Rents, OH MY!!!

Boise Idaho Investment Real Estate Update

A lot has happened to the fourplex market in the last several months in Boise Idaho. Prices have definitely gone up, investment mortgage rates have also gone up and rents are as strong as they've been in a long time.

So why have prices going up?

1031 exchanges and cash buyers are the main drivers of the increase in demand for fourplex investments in Boise Idaho. Cash investors are pulling money out of the stock market and bank accounts. In addition sellers are reluctant to sell because of increasing prices thus leading to smaller inventory numbers. Therefore the increasing demand and the shrinkage in the inventory have led to increasing prices. The logic might be, “Should I leave my money in a bank account and make nothing or negative or should I put my money into a real estate investment that will get me a 5 to 6% cap rate?”

Interest rates are up

Interest rates have gone up as we all knew that they would. Click here for a link to an article that explains it better than I can. The mortgage rates for investment properties have gone up over 5% to approximately 5.125%; that’s a 1% jump from rates in Feb of this year. That will put a downward pressure on cash flow before taxes for potential investors. Investors will likely have to live with lower cap rates which at this time are still much better than leaving your money in a bank account or putting your money in to the stock market casino royale.

Rents are up!

According to the Southwest Idaho chapter of NARPM rents have increased significantly year over year over the last 24 months. So why are rents increasing in Southwest Idaho? There seems to be a steady and strong influx of people moving in from California, Oregon, Washington and other cities and states around the northwest as well as from the east. In general people are finding that the quality of life in Boise Idaho is very desirable. Rental vacancy rates in Ada County are as low as 3%. Therefore rents are increasing steadily which is serving to counteract the downward pressure from increasing mortgage rates on cash flow before taxes.

So what's the moral of the story? The moral is that overall rates, which are still ridiculously low rates, are increasing; inventory is short so therefore if you are looking to buy AND a good rental property comes on the market in Boise, be ready to jump. It remains a very good time to buy as well as potentially sell. So if you're interested in doing either that is buying or selling your fourplex or other investment properties in Boise Idaho please give us a call at 208-939-9033 or send us an email.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, July 02, 2013

Pending Home Sales Hit 6-Year High As Rising Mortgage Rates Propel Home Buyers

Here is a great article on rising mortgage rates that I found on Forbes.com by Morgan Brennan, Forbes Staff; we knew this was coming and it will definitely affect the Boise Idaho Real Estate market.

Looks like those rising mortgage interest rates are beginning to affect home buying. Pending sales of previously owned homes surged to six-year highs, according to the National Association of Realtors, as more buyers jump into the market looking to lock in on home prices and mortgage rates that have begun upward marches expected to continue.

Pending home sales, which represent the number of contracts signed but not yet closed, ratcheted up 6.7% in May from a month earlier and 12.1% higher than a year ago. May’s index reading of 112.3 marks the first time contract activity has grown at this rate since December 2006, when it hit 112.8.

Pending sales are a forward-looking indicator for the housing market since signed contracts offer an early outlook on the number of existing home sales coming within the next one to two months, the typical time frame it takes a deal to close. Economists have been eager to see May’s numbers to better gauge how changing market conditions could be beginning to affect buyer behavior and more so, the housing recovery as a whole.

The biggest issue currently facing housing is mortgage rate increases. This week the 30-year fixed mortgage jumped to 4.46% rate – the largest weekly increase in 26 years, according to Freddie Mac, from 3.93%. That’s up more than 100 basis points – meaning more than a full percentage point – from the 3.35% rate logged mere weeks ago in early May. While still very low by historic standards, that 4.46% rate, compared to a week earlier, translates into an extra $31 in monthly payments for every $100,000 taken out in financing; compared to early May, it’s an extra $63 and change for every $100,000 taken out.

The dramatic jump, fueled by investor activity tied to the anticipated winding down of the Federal Reserve’s $85 billion-per-month bond buying program, makes borrowing costs more expensive and chips away at the high level of home affordability that has been fueling the housing recovery.

Real estate experts have wondered in recent weeks whether rising rates could spur an uptick, short-term at least, in sales, as on-the-fence prospective buyers jump into the market to lock in on rates before they climb further. The bump in May’s pending homes numbers might be reflecting the start of this. “Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditions before mortgage interest rates move higher,” explained Lawrence Yun, chief economist of the National Association of Realtors. “This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand.”

As inventory levels have dwindled over the past year, the growing ranks of buyers have helped propel dramatic price increases in many of the country’s largest markets. On Thursday, the Realtors association upgraded its price forecast for 2013: Yun now expects the national median existing home price to rise more than 10% this year. If realized, it represents the largest yearly increase since 2005, the height of the housing bubble.

Home sales have been climbing for the better part of two years. The number of pending sales has grown year-over-year consecutively for the past 25 months, according to NAR. In May, sales of existing homes – meaning closed contracts for previously owned homes– totaled an annual rate of 5.18 million. It was the first time home sales broke above the five million mark in three and a half years, after the First Time Home Buyer tax credits temporarily boosted housing activity. NAR expects sales to increase as much as 9% throughout 2013, which would translate into slightly more than five million homes sold (a number last seen in 2007).

But for all of the Realtors’ robust projections, as rates rise – and economists believe they will continue to do so, albeit unevenly – that increased cost of borrowing could still cut into the blossoming housing recovery. Though higher rates aren’t likely to derail the rebound, they could slow it, weighing on the hefty double-digit rate of appreciation underway as buyers qualify for lower principal amounts moving forward and sluggish economic growth keeps income levels relatively stagnant.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Boise Meridian Eagle Idaho Real Estate - Homes Sales and Boise Investment Properties

Sunday, March 01, 2015

Fewer homes for sale pushes up US house prices in December

Fewer homes for sale pushes up US house prices in December

Sunday, February 08, 2015

With Tax Law Changes, Foreign Investment Could Take Off

Thursday, February 05, 2015

Millennials are finally entering home-buying market

Friday, January 16, 2015

What Slowdown? Rent Growth Accelerated in 2014

Tuesday, December 23, 2014

November (Apartment) Sales are Slow, But Cap Rates Still Fall

Friday, November 14, 2014

Multifamily Holding Strong!

Friday, October 03, 2014

Looking to Move to Boise Idaho or Invest in Boise Idaho Real Estate? Check out this video!

Friday, September 26, 2014

Home Selling Tips Every Seller Should Know

Thursday, May 01, 2014

Thinking of Buying a Vacation/Retirement Home? Why Wait?

Monday, February 03, 2014

5 Ways to Pick the Perfect Time to Sell

Tuesday, January 14, 2014

3 things to know about interest rates in 2014

Tuesday, August 06, 2013

Just Listed - Fully Leased Fourplex in Boise, Like New 6%+ cap rate

Tuesday, July 30, 2013

Prices and Rates and Rents, OH MY!!!

Tuesday, July 02, 2013

Pending Home Sales Hit 6-Year High As Rising Mortgage Rates Propel Home Buyers

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