Hopefully this doesn’t offend anyone.
httpv://www.youtube.com/watch?v=bNmcf4Y3lGM
Archive for the ‘Meridian Real estate’ category
Hitler vs. The Housing Market
November 24th, 2008Good News for the Boise Home Market?
November 21st, 2008
The Idaho Business Review had an uplifting article yesterday. They reported on the Idaho Housing and Finance Association executive director Gerald Hunter’s talk at the 2008 Economic Outlook Forum here in Boise. Overall, Hunter believes that if we look at the long term picture of our housing market, we are still in good shape. Comparing recent sales statistics with those over the past 10 years, we are still among the national average for valuation increase. Yes, increase. Over the last ten years we have still averaged a 5%+ annual increase in home prices. If we forget about those two fluke years (05/06), we’re doing great. Say you bought before the boom, left the country for two years and came back, the market would seem just as normal as ever.
The unfortunate part is that many people bought during those two years so none of this 10 year average nonsense matters to them. Well, the good news is that worst may be over. According to Hunter:
“If you use that benchmark [referring to the annual growth increase], you may have to conclude that Boise has made its way through the housing bubble.”
This is not to say that we’ve reached “the bottom,” but it is a good sign that we are close. Close enough, in fact, that any attempts at timing “the bottom” may be fruitless. Over the next year as we approach the bottom (right now), reach the bottom (soon), and start to see price increases again, it may all blur together. There won’t be a specific day that we can call the last day prices dropped. And again, we won’t be sure we’ve hit the bottom until it has passed.
Remember, many of the issues we are facing today were caused by people planning to sell shortly after purchasing their home (history tells us you need to wait 4 years to break even on a home) or people trying to use their future equity today. A home purchase is a long-term commitment and if you’ve considered and accepted this fact, you’re probably ready to buy. And right now, your timing couldn’t be better.
Photo Credit: Christine ™ via Flickr
The Oracle of Boise
October 22nd, 2008
I’ve been looking for a way to explain to my buyers that now is a great time to buy (I know – does a real estate agent ever stop saying this?), but I’ve held back for a few reasons. First, I don’t actually know what is going to happen to the economy in the next month, year or decade. And second, I didn’t live through the Great Depression and I wasn’t really paying much attention during the past few recessions. Basically, my prediction skills are lacking. So, as with anything else that I don’t know much about, I’ve done some research.
As I was reading through the real estate blogs that I read everyday (see column on the right), I came across Greg from BlueRoof.com’s blog entry about Warren Buffett’s opinion article in The New York Times. Basically, Buffett tells us what we all know – buy low, sell high. But he puts it in a way that makes it easier to understand during these times of confusion. He also talks about the stock market specifically, but his advice can be useful in real estate as well. From the article:
“What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”
What is the lesson here? Right now, prices are low (hint: that is when you buy).
Photo Credit: woodleywonderworks via Flickr
This American Bailout
October 15th, 2008
For weeks we have all sat around listening to talk of a 700 billion dollar “Wall Street Bailout.” Why Wall Street and why $700 billion, we all asked. Nobody seemed to know. The plan wasn’t passed…then it was…but it was different…the Dow is down 777 points…up almost 1000 points within a few days. What is going on?
I didn’t know either. In fact, I was very much against the bailout plan when I first heard about it and somewhat relieved when it didn’t pass the first time. Then the second version passed and I didn’t know what to think. None of the news sites or other trusted resources had any answers. Then Ira Glass came in and explained everything.
Remember my blog post about the mortgage crisis? Well, the “This American Life” radio show has done another episode in which they explain the bailout plan – what it is, why we need it, and how we got in to this mess in the first place. You can listen to the show here.
It is about an hour long show and it is definitely worth listening to.
The Bottom – Guaranteed
September 4th, 2008
Are you waiting until we hit the bottom of the market before you buy a home? Well, a local builder, Brighton Homes, is guaranteeing you purchased at the bottom if you buy one of their homes or lots. Brighton Homes is offering a rebate on your purchase if they lower the price of the same model home in the next two years according to a Statesman article. The article did not contain any other details of the program and the Brighton Homes website doesn’t even mention the program, but I’m sure there are some pretty strict qualifications in order to get a rebate check.
I’m usually pretty skeptical when builders use unique marketing ideas to sell their homes, but I like this one. Although still a marketing ploy, the rebate program is based on the builder guaranteeing the value of their product, which, in the end, is beneficial to the homeowner. Of course, if this isn’t the bottom, Brighton will have a much harder time selling their homes in the future because any price reductions will cost them that much more because of the rebates.
