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Selling To An iBuyer
iBuyers are technology-centric real estate companies. Zillow is the most familiar, others are Open Door, Offer Pad, and Redfin. If you have a house that meets their criteria, they'll make you a cash offer to by your house as-is. So, the obvious benefit to these sellers is a quick cash sale. If that's the seller's need, then an iBuyer is worth considering, Otherwise, a seller may close on their property with more equity by being represented by a real estate professional . . .a lot more money. Here is a graphic by Fidelity National Mortgage comparing iBuyers with Real Estate Agents.
Boise Area Housing Market Overview
November Results
It's the slow part of the annual cycle, but the market is continuing to trend positively . . .if maybe moderating some from the rate of the immediately preceding years. (check out the updated charts and graphs on our website's Stats page):
VA Loan Limit Caps Removed
Veterans may be eligible to buy larger homes in pricier communities – still without a down payment – starting next year. Those taking out Veteran Affairs-backed mortgages will find caps removed on what they can spend in 2020.
The Blue Water Navy Veterans Act of 2019 removed the caps for the new year. But military members on active duty and veterans will still need to qualify for the mortgage, and verify they can afford the monthly payments.
VA loans have been capped at different amounts nationwide. Borrowers could take out more on a VA loan in a high-priced area like San Francisco, for example, than they could in Detroit, where home tend to cost less. If they exceeded the set limits in the city where they lived, they were required to put down 25% of the difference on the mortgage. If they stayed within the loan limits they could get a zero down VA loan.
Under the new rules, vets can get a loan amount in the amount they can qualify for and are not bound by city caps. Banks can still put in some restrictions to protect themselves against defaults. For example, some lenders may require higher credit scores or debt-to-income ratios in qualifying for the loans, realtor.com reports. The loans likely will only apply to a borrower’s primary residence.
The Market Outlook for Ada County Real Estate
(Single Family Homes)
Sales Year-to-Date: Ttl Sold 9506 $3,616,064,774
Sales YTD 2018: Ttl Sold 9618 $3,309,492,856
The typical Single Family property in Ada County is a 2105 square foot, 3.4 bedroom, 2.36 bath, 2.25 garage bays, house on a .21 acre lot. That includes new construction as well.
In 2010, 5896 Single Family residences were sold in Ada Count y – of which, 15% were new construction. For this year, through October, 9506 homes have been sold, and 30% of them have been new construction. Building is booming. Two main factors are fueling the new home market: 1 – Over time, listings to sell existing homes has not increased proportionately to the total number of homes sold, and 2 – The Boise area has become a very popular relocation destination.
Those waiting for the “correction” before they take action, will be disappointed. That’s not in the foreseeable future. As long as inventory is constrained, and demand continues, this market will be solid. The macro factors that combined to create the real estate “bubble” , and its ultimate collapse, are no longer in place. The confluence of policies put in place by disparate agencies, that combined to pervert the real estate market, was a consequence of a government too large for different agencies to know what others may be promulgating, and their unintended consequences when combined. Since then, new controls have been implemented.
The outlook for now indicates moderating housing prices. Prices will continue to increase, but at a slower rate. That may be a result of more new construction coming online to support supply. The charts and graphs on our website’s Stats page are updated monthly to capture the latest activity. The data presented includes the important metrics that indicate how the market may be changing.
National political / economic events of significance great enough to affect markets, including real estate, will be obvious to anyone paying attention. I look at each month’s loical real estate market results for the more subtle changes that could have an effect on our market. In the meantime, check in on our website’s Market Stats page to see what the local market is doing.
2018 National Migration Study
United Van Lines and U-Haul 2018 Customer Data
Among all who move, there are those who use moving companies, and those
who do it themselves. So, data from both companies provide broader
information about who is moving where, and why.