Escalating interest rates have put the brakes on the real estate world in Elmore County. ReFi’s dropped from 55 in June of 2012 to 35 last month. Recorded deeds of trust for property transfers also fell precipitously, from 83 in June of 2012 to 56 in June of 2013.
MLS reports that brokered residential sales were not that far off last year’s mark, 22 in June of 2013 to 25 in June of 2012. However, the median price was up 20.35% for Existing Residential Sales to $119,150 in June over $99,000 in June of last year. Oddly, the average price was only up 0.15%. But the quantity of brokered sales was down from last June, 20 as compared with 24 the previous year.
Listing numbers are slightly down on existing homes, but New Construction listings are up 58%, 30 in June over only 19 in June of 2012. The Builders have confidence in the economy that the buyers don’t yet have.
What do these opposing statistics tell us? How do we plan for the future? It’s a crapshoot. Interest rates are still very attractive. If interest rates rose from 3.5 to 4.5% on a $100,000 home, that is an increase in payments of about $696 per year. However, if that rate inflates to 5% in a year, that is a $5,000 increase. The message everyone should be hearing is BUY NOW!
Blog submitted by Scott Roberts, Vice President and General Manager, Mountain Home, Idaho