The new legislation also expands the program by adding a $6500 tax credit for people who already own a home, although that is limited to people who have owned for 5 years of the previous eight.  There are also limits on price and income.

For more details about the extended tax credit compared to the previous version, see this pdf.

Additionally, 11 states have programs that allow the credit to be used towards the Buyer’s downpayment.  Idaho is one of those states.  For a little more info, see this pdf.

Reflecting the slower housing market, there are just 17 new homes on the Parade this year, but they are homes presented by many of the Valley’s best builders including Tahoe Homes, The Marrs Company, Capitol Building, Brighton Homes, Crocker homes, Borup Construction, James Clyde Custom Homes, Boise Hunter Homes, Berkeley Building Company, Roth Homes, Flynner Homes, and Eric Evans Construction.

There is an excellent clickable tour map online at the BCA website.  You can also click through to previews of each home.

Inside you’ll find a very well maintained home with a wonderful kitchen.  Oak cabinets, oak floors, and a surprising amount of space, with a nice dining area besides.

Unlike so many on the market, this home is NOT a Short Sale or bank-owned, and it is in great condition!  You can move right in and not have to remodel or fix it up.  MLS #98394827.  Call me, I’d love to show it to you!  FLYER 

MLS 98394827

Interest rates have recently been below 5%, which is fantastic!  Assume you’ve found a $200,000 home and you’d like to put down 25%  and you qualify for a 30 year mortgage of $150,000 at 5%.  The Principle and Interest on that loan would be  $805.23 and that is as much as you’re able to pay.  What if you wait ?

If the price goes down 8%, to $184,000 and you still put $50,000 down, you will need a loan for $134,000.  Sounds great so far, if the rate stays at 5%.  But if interest rates go back up to just 6% (still historically low) the payment on that loan is $803.40.  Your gamble on prices really only saved you $1.83.  And if the prices don’t go down but interest rates go up, you’ve lost the advantage of a cheap loan.  Your $150,000 loan at 6% instead of 5% will cost you $899.33 per month, an increase of $94.10 per month.  Still attractive?

Again, no one knows what prices and rates will do.  But be aware of BOTH when trying to decide to buy.

One sign of that is the increasing number of contracts Pending. Currently there are 527 homes under contract which is a big jump from the 459 we started the year with. One of my Title company contacts told me that they saw a number of sales close with loans at rates below 5% a week or so ago (although the rates have again gone back over 5% for now). Rates at that really historic low make it easy for some to make the decision to buy. And considering that the inventory of active listings hasn’t changed from January’s 3635, perhaps we are in a calmer place in our market.

One interesting thing the data shows is that the sales are being made in a bit lower price level in the market. Last year’s median price in January was $217,500, while this year it was $180,000. This is a 17% decline year over year. While that implies lower prices, it also more strongly indicates that buyers are working in the lower levels of the market. The “expensive new construction boom” we had two and three years ago is over, so those sales don’t affect our numbers as strongly as they did then. Another way to show that is to see that of the sales in January this year, 60% of them were homes priced below $200,000. Last January only 40% of the homes sold were below $200,000, and in 2007 it was barely 36%. That is quite a market change! And one last tidbit, it should come as no surprise to know the length of time on market has increased from 73 in 2008 to 90 days this year, according to MLS figures.

For a closer look at single family home sales in Meridian, check out my latest post at Our Meridian Blog.

Pardon my dust, I’m rebuilding.  Over the next few weeks this site will grow and fill with useful information and links to help you realize your own dreams, whether you are a buyer or a seller.