Idaho's Housing Market 2013: What to Expect

Posted by on Thursday, March 7th, 2013 at 4:51pm.

For Sale

There's a new market out there for 2013. And in the ever changing world of real estate, this comes as no surprise. You've likely noticed how Boise Idaho real estate has been changing over the course of 2012 and into 2013, and how these positive trends have completely changed what our market is doing. Fewer foreclosures, rising house prices, and shrinking inventories of homes have all played significant roles throughout the Treasure Valley. Much of the same is occurring throughout many of our nation's real estate markets, and it all means one very important thing: Home buyers need to be more prepared than ever before.

One thing experts say hasn't changed, is that today's home buyers need to have a real solid understanding of the things they want and need in a home before they actively start searching. This idea has been a part of the real estate game since its conception, and it's a keystone piece toward finding your dream home.  

Undiminished Opponents

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One of the biggest storiesfor 2013 has been low inventory-and Boise Idaho is no exception. Boise has been involved in the same shortages of available listings as many of the nation's most desirable markets, making the shift from a buyer's market to a seller's market.

According to the National Association of Realtors,the number of homes for sale is now at its lowest level in over 13 years. With an increasing inventory crunch as we head into the busy spring selling season, it's time to gear up with the tools necessary to succeed at finding your dream home in Boise, Idaho. This means that in addition to being financially ready to move forward, you need to be mentally prepared for a market with increased competition. While it's always been true regardless of market conditions to be financially prepared, buyers in 2013 now more than ever, need to have a mortgage approval in place before they enter the market to buy a home. Why is this?

Because in a seller's market, sellers won't accept an offer without a mortgage approval letter attached-especially if they have other offers that do have mortgage approvals attached. We're entering the season where sellers can expect to receive multiple offers, resulting in a bidding war, and if a buyer wants the advantage, they will have pre-arranged financing securely in place.

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Abundance of Censorships on Credit Advances

Lending conditions in 2013 have also changed. With restrictions that seem to be only getting tighter and tighter, buyers need to be fully aware of their credit scores. HSH, an online publisher of mortgage and consumer loan information, says that prospective buyers should check their credit score as soon as they are thinking about buying, because fixing even a minor credit issue can take 60 to 120 days to correct.

They go on to say that the average FICO score for an approved conventional loan was 764 in November 2012, and the average credit score of a denied conventional loan was 736-both two points higher than in October.

Tighter lending standards mean potential buyers need to be even more prepared as they head into the mortgage approval process. Buyers need to get geared up with extensive financial documentation such as pay stubs, tax returns, bank statements, asset statements and more. In addition to submitting these forms to the lender and working through the pre-approval process, buyers will also need to estimate what the total cash requirement is to make the home purchase. Costs such as the earnest money deposit, down payment, home inspection and appraisal as well as lender fees are all an inescapable part of the equation when it comes to home ownership. It's vital that buyers know what they can afford and how to move that into a monthly payment.

Decisiveness is Key to Getting What you Want

Modern Meridian Tudor

As mentioned earlier, buyers need to know exactly what they want and need in a home before they embark on an active house hunt. With declining inventory numbers and increased demand, buyers who spot a home that fits the items on their wish list need to be prepared to move quickly.

A home has both its traditional value as reported by an appraiser, as well as the value buyers place on a personal level by what qualities and advantages the home possesses for their individual needs. Buyers should be prepared to find the home that will fulfill their needs on a long term basis. Is the home located near a quality school district? Does it have quick access to public transportation and other amenities? All these things and more can make a home more or less appealing to a variety of buyers with different needs, and when a buyer knows exactly what they're looking for, they'll be more likely to find it.

Experts recommend moving fast in markets with lower inventory, and with today's low interest rates and higher buyer affordability, the time to move is now-especially as we prepare for the spring frenzy.


Sources:

Housingwire.com: Low-inventory-pushes-multiple-offers-real-estate

Library.HSH.com: Homebuyer 2.0: New Market, New Rules

Forbes.com: 'Seller's Market' Developing as Housing Inventory Hits a 13-Year Low.

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