Interest Rate Purchasing Power
It's Time to BUY some Idaho Real Estate!
Sometimes at Boise Premier, I feel like I'm "over-hyping" our current low Interest Rates. I ask myself "Am I being too aggressive or I'm I doing buyers a favor by getting them off the fence?
Well, let's put "purchasing power" in perspective. I like this example: Home sellers lose $28,000 in value every time interest rates go up 1%.
Let’s use a $250,000 house in Meridian as our example:
A 1% interest rate increase equals $145/mo. increase in payment. It also means the buyers loses $28,000 in purchasing power at the lower rate. Sellers need to understand that the 1% to 2% appreciation they are hoping for over the next 1 to 2 years is nothing compared to interest rates going up 1% or 2%. A $250,000 house increase in value by 2% equals $5,000 to $10,000 in 3-5 years.
So...with Interest rates going up 2% means buyers just lost $56,000 of buying power!
The point with this is home affordability in Boise, Idaho has never been better, Use the search features at the right to start searching today, or use our partner search engines www.topboiserealestate.com or www.boiserealestatesearch.com to find your next home.
Throughout these Idaho websites you will find powerful property searches like the Boise MLS, Buyers and Seller resources, Boise-area information, mortgage calculators, home buyer news, home selling tips, an automated home search that sends you emails with the homes that meet your requirements automatically more, a best-deal Blog and more. We will find Homes in Boise, including Boise foreclosures and Boise short sales