Navigating the Market: Expert Insights and Positive Trends

  Photo courtesy of Knowles Gallery In the days following the election results, there has been a flurry of activity and updates regarding the economy and its influence on the housing market. While the Fed cut rates a quarter point last week, this move did not directly impact mortgage rates, which have continued to tick upwards, with 30-year mortgage rates ranging from the mid-6s and up, depending on several factors. Economists, Lenders, Real Estate Professionals, and potential homebuyers alike continue to watch these numbers closely, with new data and outlooks being published almost daily.   Despite recent moderate swings in interest rates and the activity in the financial markets, many analysts anticipate mortgage rates to stabilize in the upcoming weeks and months at a rate below this year’s levels.    The National Association of Realtors (NAR) Chief Economist, Lawrence Yun, gives his take on the real estate market, noting, “Housing affordability has been a challenge, but the worst appears to be over.  Rising wages are outpacing home price increases. And more inventory is reaching the market, providing additional options for consumers.” For homebuyers, this is certainly welcome news.    NAR reported housing affordability actually improved slightly, which is good news for many.  Monthly mortgage payments are down 5.5% from the second quarter of 2024 and down 2.4% from one year ago.     With much talk about interest rates and predictions about the future economy, Yun gives encouraging updates for homeowners, referencing national data stating that on average, a typical homeowner accumulated upwards of $147,000 in housing wealth in the last five years.  He notes that home prices remain on solid ground, reflected by the vast number of markets experiencing substantial gains. “Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal,” he says. “Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”   As presented in an article recently published by the Idaho Business Review, median prices on single-family homes throughout the US have continued to steadily climb.  The vast majority of Idaho’s counties reflecting a similar trend - In Twin Falls County, the median single-family home price was up 6.8% to $449,000; Bonneville County was up 4.7% to $450,000; Ada County was up 3.3% to $608,425; and Bannock County was up 0.1% to $399,900.    

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Navigating the Changing Landscape of Real Estate Compensation: What You Need to Know

Photo by by benedek from Getty Images Signature In the ever-evolving world of real estate, effective communication has always been a cornerstone of success. Changes brought from a recent NAR Settlement regarding how real estate compensation is disclosed are set to reshape how agents, buyers, and sellers interact. While these changes may seem daunting at first, they underscore the importance of clear, transparent communication in real estate transactions.   Understanding the Changes The recent legal settlements have introduced new rules that will significantly impact how compensation is disclosed in real estate transactions. While these lawsuits did not directly involve Idaho, where practices were already in alignment with proper disclosure standards, the new regulations will still affect how business is conducted. As of August 7th, the ability to disclose whether a seller is offering compensation to a buyer's agent through the MLS system is not allowed. Previously, buyer's agents could view this information and discuss it with their clients. Moving forward, this transparency will be removed, requiring a proactive discussion between the buyer and their agent about how the agent will be compensated before any home showings occur.   What This Means for Buyers and Agents For buyers, this means that the first conversation with their real estate agent must now include a detailed discussion about compensation. This is a crucial step to ensure that both parties agree on how the agent will be paid—whether the compensation comes from the seller, the listing brokerage, or directly from the buyer. Real estate agents must now prioritize these compensation discussions, ensuring clarity and agreement before proceeding with any property viewings. The law is clear: agents cannot even open the door to a property without first addressing and resolving the compensation matter.   The Path Forward While these changes may introduce some initial confusion, they ultimately highlight the importance of professional communication and negotiation in real estate. The new rules may seem paradoxical—aimed at transparency yet removing a level of transparency that agents and buyers have relied on—but they also emphasize the need for clear, direct communication between all parties involved. Much like choosing the right professional for tax preparation—whether it's doing it yourself, using a service like H&R Block, or hiring a CPA—buyers now have more explicit choices about the level of representation they want and how much they are willing to pay for it. This flexibility ensures that there will always be a need for skilled real estate professionals who can offer expert advice and negotiate effectively on behalf of their clients. The real estate landscape is shifting, but the core principles remain the same: communication, professionalism, and negotiation are key. Those in the industry who can navigate these changes with expertise and clarity will continue to thrive, ensuring that buyers, sellers, and agents alike will be well-served in this new era of real estate transactions.    

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Spring Market Update

  Photo Credit to Doug Peterson Photography   Spring is just stunning right now. The leaves are in bloom. The flowers are bright. Our foothills trails are incredible to enjoy the outdoors and the greenbelt along the river is just as wonderful.` Real estate is also booming. Homes are selling quickly in Boise right now in the spring market. We are seeing multiple offers, days on market have come down and prices are going up. Interest rates, well, we aren’t hearing that they’re gonna be coming down anytime soon so we’re finding that buyers are jumping in to take advantage of today’s prices.    

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