Why Buying a Home Now in Boise Makes Sense!

Have you been thinking about buying a home in the Boise area but are waiting for the prices to hit bottom? Well, sadly that time has come and gone. The bottom of the real estate market came about in April of 2011 with a low of $135,000 (median sales price)!  It is now up to $179,900 (January 2012 median sales price) and the inventory continues to drop. As we know, when inventory is low, prices go up (supply and demand)!

But let me show you some important reasons as to why buying a home in the Boise area now, instead of waiting a few months, makes sense:

  • Less buyers currently looking (less competition, and even with that we are starting to see multiple offers becoming the norm. This means that the homes are going for at least the asking price and in many cases above it.
  • Interest rates are low, like 3.75% low for FHA!
  • Prices will continue to creep up.

Let me show you another way that will hopefully drive home my point:

We will look at the cost of a 3 bedroom/ 2 bath home with variable interest rates and a 3.5% down-payment.

1. $160K (purchase  price) – 5600(3.5%) =$154,400 (loan amount) @3.75% = $715.05 (monthly payment)

2. $150K (purchase price) -5250 (3.5%)=$144,740 (loan amount) @ 4% =$691.06 (monthly payment)

3. $140K (purchase price) -4900 (3.5%) = $135,100 (loan amount) @ 5% =$725 (monthly payment)

As you can see, how much house you can afford is directly related to your interest payments. You may look at the 4% interest rate and feel the monthly payment is actually lower but the house price is actually $10k less. This means that you are probably getting less square footage and giving up a few extras. Then when you look at the 5% rate, not only do you get a higher monthly payment but you are getting $20k less house to get a similar payment as the $160k home.

Interest rates are low right now and will more than likely not go any lower. Banks can not make any money if they did! The rates will rise slowly but surely as will the home prices. The thing is, we know what the prices are now, we can not be so sure going forward. However, we do know that the prices are not going down! Buy here, buy now!

If you would like to see how much home you can afford, please go to my web site: http://www.BoiseRealEstateChick.com. Use the mortgage calculator and then go to My Dream Home tab and see what your new home is going to look like!

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: