Thom and Dave cover a plethora of topics today! First up, how did January 2019 stack up to past years? Listen in to find out! Next they go over renting vs. buying a home. Finally the get into some of the possible home trends coming in 2019 as the Spring Parade of Homes is quickly approaching. Plus, Ron Wieczorek is in the studio to chat about home affordability.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, also an associate broker with Core Group @ eXp. Remember that name. "Core Group @ eXp."
Thom Dallman: Core Group @ eXp Realty.
Dave Burnett: CoreGroupRealty.com is the website to go to, 208-933-7777. The official name is "Core Group @ eXp Realty"?
Thom Dallman: Correct.
Dave Burnett: Alright. Get the business car right. You know, if you want to stop by, easy to fine. Right over by the Boise Town Square Mall on Emerald.
Thom Dallman: Yeah, just two blocks west, two blocks west on Emerald. Great location, convenient to everything.
Dave Burnett: Yep, on the south side of Emerald.
Thom Dallman: Yep, exactly.
Dave Burnett: So check that out, got a big sign in front and you can always stop on by and talk to the friendly staff there.
Thom Dallman: We usually have agents standing by, 8:30 to 4:30, Monday through Friday to answer questions, no pressure, just come on in and sit down and talk about what the home buying process is, to what's out there available on the market, anything that you want to know over there for you.
Dave Burnett: But we've always talked about the fact ... If you're in the process, or you're thinking about buying a home, you need to interview your real estate agents, the company that's going to either represent you in selling your home or helping you find a home, it's the biggest financial transaction that, for must of us, that we'll ever make in our life. And so it's important that we get off on the right foot with a company that we believe in, and understand how they do what they do.
Thom Dallman: Exactly. Make sure you have that trusted advisor to help you out making that, like you said, the most important financial decision that you've made, probably, in your whole life.
Dave Burnett: And you know, one thing I've learned in doing this show, because I have no real estate background other than buying a home and selling a home. But one thing that I have noticed and have paid attention to, is all the avenues that a company has, as far as marketing my home, as far as finding a home. There's a lot of different ways.
Thom Dallman: Exactly.
Dave Burnett: There was that day and that time and age where it was just, put a sign in a yard and an ad in the Saturday newspaper. Was it Saturday or Sunday?
Thom Dallman: I believe it might have been both, actually.
Dave Burnett: The weekend was really big, and that's all you really did. The really innovative ones would put a sign with balloons tied to it.
Thom Dallman: Exactly.
Dave Burnett: International symbol that we're selling houses.
Thom Dallman: Yeah, over the years so much has changed with the whole internet, and we've talked about, in the past, about the fact that most ... What is it, 92% of all home buyers start their process online? They start looking and they Google that, "Real estate available in Boise, Idaho." So that's kind of the start of the process for a lot of people. They're usually months out before they're ready to buy, so it's really kind of getting your house in front of them for those people who are already engaged and looking at property and stuff like that. But the internet is prevalent, it's where everything happens nowadays.
Dave Burnett: It is huge. And that's why, if you have not been in the market for selling a home or buying a home in a while, talking to an agent at Core Group @ eXp Realty could really help. Because they'll share with you, "Here's what we do. Here's what we do with Facebook, here's what we do with Instagram, here's what we do on email." There's a lot of different ways to sell and buy a home.
Thom Dallman: You have it correct. That's one of the most exciting parts of real-estate for a real-estate agent, is to get as many avenues out there as possible, to get the homes out there for people to see, to get yourself rated up there, and work hard towards your reviews, your internet presence, and stuff. And that's what we've specialized since 2010, is getting Core Group out there and topping those lists and being the ones that people are clicking on and getting in front of.
Dave Burnett: Yep.
Thom Dallman: Along those lines, we just launched this week with a new marketing company to really promote a lot of our listings on Facebook and stuff, so we're really super excited about this new venture that we're embarking on. But it gives us a whole new opportunity to really engage people via social media with our new listings and stuff. So it's going to be an exciting time.
Dave Burnett: Call Core Group if you want to check that out, talk to them about it at 208-933-7777. Let's go to a comparison, we talked about this before we started the show today. Comparisons, because at this point, some people are saying, "Oh, the real estate market, I don't know if it's time to go into it or not. Oh, what should I do?"
Thom Dallman: Oh my gosh, yeah.
Dave Burnett: But you have some hard numbers.
Thom Dallman: Yeah, last night while I was sitting around, I thought I would take a quick look at January's sales, and I was like, "You know what? I wonder what it looked like back in 2010, 2009, 2010 or around that time that the big crash happened, and then compared it to the last couple years. It's interesting because around 2012, 2011 to 2012 was when we hit that bottom and things started increasing. So starting back in January of 2009, we had 82 home sales in January, with a approximate median sales of $154,000.
Dave Burnett: That was when?
Thom Dallman: Back in 2009.
Dave Burnett: Wow.
Thom Dallman: So right after the crash was going on and everything. And January of 2010, we increased by 9 sales, so we went up to 91 sales and $138,000 approximate median sales. So sales went up, but home prices went down. Which kind of go hand in hand. 2011, "the bottom" is what we usually say of the market, the crash and stuff. We had 119 sales, so a lot of good sales. But the median ... Approx. median sales price at that time dropped all the way down to $113,000.
Dave Burnett: Wow.
Thom Dallman: It was the lowest that we had seen in forever. In eight years.
Dave Burnett: So was that when the turn came at that point?
Thom Dallman: Yep, the turn started happening in 2012, the sales increased to 138, median home prices jumped up a little bit to $122,00, and continued every year to go up after that, into the last couple years. So 2017, that's when we really started seeing this big boom happening. In 2017 we had 199 homes sold in January, with a $200,0000 approximate median sales price in that January of 2017.
January of 2018 dropped in sales to 194, but the home median sale price went up 40 thousand, so at $240,000.
Dave Burnett: And part of that was just availability. There just weren't any homes to sell.
Thom Dallman: Exactly. So as inventories kind of decreased and we've kind of struggled with that, the sales are staying pretty consistent, but the median home price is going up continuously, because equal demand and less inventory means that you're having increases in prices. So as of January this year, we had 193 homes sold, so pretty much the same amount of homes sold. But the median sales price was at $263,000.
Dave Burnett: Wow.
Thom Dallman: So, going all the way the low in 2011, 113 all the way up to 263 right now.
Dave Burnett: That just makes my head swim.
Thom Dallman: Yeah. It's insane. In the last ... And that's what, 8 years? That's only an 8 year increase.
Dave Burnett: Yeah, that is a ... Okay, for those who say, "I don't think real estate's a very good investment."
Thom Dallman: Right?
Dave Burnett: Hello.
Thom Dallman: Those people who bought in 2011, 2012, they are sitting on a lot of good equity right now. That begs the question of, "Do we sell our house and take the equity out and invest it elsewhere on another property, or do I?"
Dave Burnett: "Or do I get into business now?"
Thom Dallman: Yep, yep.
Dave Burnett: Because we've talked a lot about, in the past, about renters. Is it time for a renter to get in? Is it going to continue to go in the direction ... And mind you, we don't have a crystal ball, we don't know what tomorrow holds.
Thom Dallman: Correct, correct.
Dave Burnett: But if I'm a renter and I'm suddenly sitting in one of these apartments somewhere, going, "Man, am I just flushing my money down a rat hole every month, paying rent?" Is it time?
Thom Dallman: It might be. That's something that you really need to kind of evaluate your situation and kind of decide if it's time or not. Take a real good look at what mortgages are going for right now, what your monthly payments would be. Keeping in mind there's, obviously, advantages and disadvantages of getting into a home. But it's a great time to still kind of evaluate that, because mortgages without interest rates right now, even though they went up a little bit over the last year, they're still low enough interest rates that you could sometimes be, potentially, paying more on rent right now than what you could on a mortgage. And investing in yourself versus investing in your landlord's endgame, if you will.
Dave Burnett: Exactly.
Thom Dallman: Investment.
Dave Burnett: And that's no offense to landlords, because landlords buy homes too. But you have to look at your personal situation to go, "Now, wait a minute." Now, I know there's several things that, if you're renting, you need to look at.
Thom Dallman: Yep.
Dave Burnett: How long you plan on staying in the area.
Thom Dallman: That's one of the...
Dave Burnett: If you're going to move within a year or two, might not be worth buying at this point. But if you're planning on staying for three or four years or more, it's something to definitely come talk to one of the agents at Core Group @ eXp Realty.
Thom Dallman: Yeah, yeah, there's all kinds of questions that you need to ask yourself in regard to purchasing and stuff. How much do you have in flexible income to take care of disasters if anything does happen, is an important thing to think about. Because that will apply to what kind of home do you want to buy? Do you want to buy a newer home, is it okay to buy an older home, do you have the extra savings to be able to do repairs as they come up?
Because everybody knows that older homes, as they mature...
Dave Burnett: Sure, hot water tank goes out or whatever.
Thom Dallman: Things start to wear out after time. And biggest question, what's your career goals, what's your family goals? What's your financial goals? How do you intend to increase your income over the years and be able to afford more house and things like that? A really good lender will be able to help you with those questions and kind of help you pinpoint exactly what your mortgage would cost right now, how much down payment you have, if you even need a down payment.
A lot of first-time home buyers have the first time home buyer program through Idaho Housing that will pay for your down payments and stuff. So there's a lot of programs where you don't have to put a lot of money down. That's not that old school thought of, "I have to put 20% down!" No, you don't anymore. That's nice if you can afford that and do that, but it's not necessarily a necessity right now for a lot of first-time home buyers.
Dave Burnett: Exactly. So it really truly is, and we're going to talk to Ron for Movement Mortgage here in just a few minutes, we'll find out a little bit more about where the marketplace is, because you just pointed out from 2010 to where we are today, or 2011 to where we are today, the value of homes has really gone up.
Thom Dallman: Mm-hmm (affirmative).
Dave Burnett: Loans are still very, very affordable right now.
Thom Dallman: Exactly.
Dave Burnett: So, is it going to continue to grow? I tend to think ... I don't see it slowing down a whole lot, maybe a little bit.
Thom Dallman: I've been doing a lot of evaluating, or talking to a lot of other agents out there and stuff, and there's no indication that we can see, in the foreseeable next two years, that anything's going to happen.
Dave Burnett: Here in the Treasure Valley.
Thom Dallman: Here in the Treasure Valley, yes. That's just specifically here. Nationwide, whole different ball of wax, as you know. The bigger cities get priced out and have become less affordable, and people are migrating this way. That's what's caused our little pocket of activity and so forth. I'm just saying here, in the Treasure Valley, there's no indication.
Dave Burnett: Very good. Thom Dallman, of course, who is one of the co-owners, associate broker at Core Group @ eXp Realty, and we invite you to go the website, check it out, or come in. Make a phone call, come in and sit down and talk. Some of the questions we just talked about and just went over here are some of the same questions you'll get when you sit down to talk about an agent and what your goals are.
Speaking of Ron, we're going to talk to the phones from Movement Mortgage coming up in the next segment as we continue, one of the sponsors of this program along with Core Group @ eXp. CoreGroupRealty.com is the website, 208-933-7777. Call them today and find out more. And find out why you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, the associate broker at Core Group @ eXp. CoreGroupRealty.com, that's the website. And of course, you can always call (208) 933-7777. And Thom, we always get a chance to talk to Ron with Movement Mortgage about what's happening in the marketplace.
Thom Dallman: One of our favorite people to tell us what's happening and answer all of our lending questions that we have. It's always a good source of information.
Dave Burnett: We got started on a topic last week, you kind of wanna continue this week?
Ron Wieczorek: A little bit, yeah. I'll kinda tie a bow on the talked about affordability. My head's still reeling from the favorite people comment. I'm still smiling over there.
Dave Burnett: Well, it's true.
Ron Wieczorek: Thank you. We talked about home affordability. And we talked, because this is the time of the year that we kind of reflect, folks in our industry and reading a lot of articles and what happened in 2018, so we're now taking a lot of that stock up and looking at the trends, whether it's nationwide and how it affects the Treasure Valley and how it hits home, but what we saw a lot last year and this is across the US and more so in Boise was the home appreciation increased by 18% in Boise, which was the highest rate of appreciation that any metro area saw in the country. And couple that with rising interest rates, mortgage rates went up. And even though we're in a very strong economy right now, wage growth was a good number last year and it continues to be strong, it was outpaced by the home appreciation and by the rising mortgage rates.
So what it does is it isolates some of the first-time home buyers, entry level. If you're on the third, fourth-tier home, then you're probably not as concerned because you've already ... your career is in such where you've budgeted for that and it doesn't hit you as hard, maybe it's a little more than you want, but maybe you have that flexibility to afford that. If you're in that entry-level position, every dollar counts. So just a slight increase in the price of the home, a slight increase in the rates can be the difference whether you're gonna rent for another year or two years or whether you're gonna buy that home.
Thom Dallman: Exactly.
Ron Wieczorek: So that's something that we're keeping a very, very close eye on and you see it, Thom.
Thom Dallman: We see it all the time.
Ron Wieczorek: ...is just where you look at, you probably circle the part of the map that you wanted to buy a year ago and now, those prices and the rates aren't there anymore, so now you're expanding that circle-
Thom Dallman: Expanding that to, yep.
Ron Wieczorek: So we get that a ton. So I guess in retrospect from last week, we've seen the rates ease a little more and they are gonna continue to ease is the sentiment, at least, I don't know that that's gonna happen. That may slow down some of that and pull back some of that affordability for some folks in that entry level. So I just wanted to kinda revisit that a little bit and then go into what we're seeing with inventory. So kind of sounds like I'm gonna contradict myself a little bit because the inventory is growing in most of the United States. Realtor.com stated that inventory gained 5% nationwide, but in some of the largest metros, there's a 10% hike in homes available. So that's a good sign. A lot of folks will look at those numbers and say, "Oh no." And we even talked about it during the break, is more inventory, does that mean that everything is gonna become available, does that mean that we're looking to fall off a cliff again?
Thom Dallman: The market's gonna get flooded.
Ron Wieczorek: And I don't believe that. I think that a little bit of that was needed. Now, we still have a struggle when it comes to the entry-level homes, because those are still high demand. Those aren't on the market very long. You probably see that all every day, Thom.
Thom Dallman: Yeah.
Ron Wieczorek: So that's where the focus is right now, what are home builders doing. And that's what I wanted to get into was the home builders had a tough half of last year, the beginning of 2018, and I read a report where there's a hierarchy of people that are in tune with the market. The last people to really know are the builders, usually. So, they're always a couple months behind.
Dave Burnett: They're busy building and not-
Thom Dallman: They're busy, yeah.
Ron Wieczorek: And then all of a sudden they're like, wait what just happened? So that have to unload some of that inventory in whatever space it's in, whatever price brackets and then... And, 41% of the builders reduce their price in the last half of 2018.
Thom Dallman: Wow.
Ron Wieczorek: And that's opposed to...
Dave Burnett: We're talking nationwide?
Thom Dallman: We're talking nationwide.
Ron Wieczorek: We're talking nationwide. I've seen some of it in Boise with a lot of sales going on. And that's opposed to 26% is 2017, so that kind of gives you an indicator of what that looks like and where that inventory's being freed up. When I say, and I talked to this over the break a little bit, when I say reduce prices, it's not always you list a house for $400,000 and now he's getting it for $375K or $380K. What they'll do is they'll bake in a lot of seller incentives, maybe upgrades to the home, that weren't available in the original listings. Maybe they'll pay for some of the mortgage costs, maybe they'll pay to buy your mortgage rate down to make that more affordable. So, there's creative ways that builders are doing that and...
Thom Dallman: Its kind of like CBH for November and December had and incentive if anybody bought a house, November and December, they were offering $10,000 towards upgrades on the house, or paying closing costs, things like that. So it's similar to that where they're offering incentives outside of drop of the price.
Ron Wieczorek: That's exactly what that it is. Sometimes you're neighbor three doors down doesn't hear that you got that $10,000 incentive. They don't know the backdrop of that but they see that the sticker price stayed the same or the listing price stayed the same. So they're like, well I paid the same price as he did.
Dave Burnett: In house we have upgraded lights, or a bigger patio, or imprinted blocker work, you know, on the driveway. That sort of stuff.
Ron Wieczorek: Exactly. So that's where a lot of these hidden, when I say that there's price cuts from the builders, you don't always see it with the naked eye. And just to give you an example, I mentioned that 41% of the builders reduce their price in the last half on 2018. Of that 41% only 4% actually reduce the asking price. So that's showing you that they're very in tune with how to be creative and how to, I hate to use the word lure, but lure more buyers into that to get their inventory sold. So, that was intriguing to me to come across those numbers.
Dave Burnett: And is that indicative more in a particular price point of home? Because you said still the entry level price is in high demand. Would that be in more...
Ron Wieczorek: Yeah, I'd say second to... I'd hate to use numbers on it just because it's different for every pocket, but it's not your first time home buyer with that typically. Because that inventory's still well, well spoken for.
Dave Burnett: Now let me ask you guys this, if somebody's getting a home built, is that something to keep in mind to talk to that builder if they're in the process of saying, hey, you know what? Could we upgrade our light fixtures or could we upgrade this, the countertops or something? Is that something to keep in mind?
Thom Dallman: I would say if you're in the middle of the building process, probably not. Probably all the stuff if... Yeah, but if you're starting out and making offers, that's something that we'll kind of work with you, an agent would work with you, is help you kind of formulate that offer to get something like that put into it. That's something that you kind of have to negotiate as part of your offer upfront.
Dave Burnett: Okay.
Thom Dallman: I wouldn't say that it's something that if you're in the middle of a building process that you're gonna go in and change the terms, a lot of builders won't adhere to that because you're already under contract and everything, so.
Ron Wieczorek: Well I think to your point, Thom, I think it's a very, very pivotal part of that chess match that you have before you sign the contract and break ground.
Thom Dallman: Yep, the negotiations.
Ron Wieczorek: And just to keep in mind or to keep in tune that these things are available, these things are happening, they're on the open market. And if you don't ask and if you don't have an experienced agent like Thom that's gonna ask for you, then you might miss out on those opportunities. So there's... you know, it's not always just because I mentioned only 4% gave actual reduction in prices. So one would think, that's not in the business and does it everyday, say, this one sold for 400, that one sold for 400. What makes me any different that I'm gonna get it for less? Well, maybe you're getting a better home, maybe you're getting more incentives.
Thom Dallman: You got a better agent.
Ron Wieczorek: Right. So that's key and that's part of what I was thinking about when I was writing all this stuff down.
The entry level homes, still though, not only is the inventory still tight, it's hard for the builders, too. And it looks like in 2019 we're going to see more entry level homes being built. But it's still the cost to build a home is more than it was three years ago. For the same home. You know, now the building materials, there's tariffs, there's compliance and regulations that are added to that. So that same structure, all else equal, plus wage growth. So when you have, like we had a labor shortage or have a labor shortage in that industry. So when you have a labor shortage, what happens?
Dave Burnett: Price goes up.
Ron Wieczorek: Price goes up, because....
Dave Burnett: It's more expensive to set that tile.
Ron Wieczorek: Because now I'm not going to go out to the job site for what I was going to two years ago when there was ten more of me. Now that it's just me, I'm like well, it's gonna cost you more for me to swing this hammer today, so. And that's what's going a lot is that constriction of labor cost, the higher tariffs, that's causing that product to be higher just because the market's setting it.
Dave Burnett: For a builder, it's a delicate dance.
Ron Wieczorek: It is.
Thom Dallman: Oh, it really is.
Dave Burnett: You need those contractors and you gotta keep them happy but you can't be taken advantage of, it's a delicate dance.
Ron Wieczorek: It really is, it really is. Even more so now than, I think, than it was in previous chapters. And I know I sound doom and gloom a lot, but it's still an exciting time to be in the Treasure Valley. And a lot of my numbers come from nationwide and luckily, knock on wood, we're insulated from a lot of that movement.
Dave Burnett: And just to clarify, we're talking about a market that was white-hot.
Ron Wieczorek: Yes.
Dave Burnett: And now is just hot.
Ron Wieczorek: Yes, right.
Dave Burnett: It's not that it's imploding, it's just not white-hot now.
Thom Dallman: Exactly.
Ron Wieczorek: Yeah, we went from incredible to great.
Thom Dallman: Yeah, right.
Ron Wieczorek: When you're still looking at, especially in the valley, and I belabor that point but I can't say enough how much the valley is still very desired. I talk net migration numbers all the time, we still see... We're in school now and it's a little colder. I know you wish it was warmer, Dave.
Dave Burnett: Yes, I do.
Ron Wieczorek: But that's when it naturally does slow down a little bit anyway. But I don't think we're far off from the white-hot again. And, you know, maybe it's not 18% this year, maybe it's... Even if it was half that, that's a heck of a year.
Dave Burnett: 8 or 9%, that's a good year.
Ron, if somebody wants more information about Movement Mortgage, which by the way I need to tell you is an equal opportunity lender in there, how do they get hold of you and find out more about loans that are available? Maybe they are that entry-level person coming in, and I know there's first-time home buyers, there's lots of different options out there.
Ron Wieczorek: A lot of options, and I've mentioned this on the show in the past is, you don't want to get stuck on "I don't know if I have enough down payment, I don't know what my credit looks like." Check. Call my cell phone, it's always on me: 208 869-9154. You gotta know where you stand and what options are available, because there's a lot of state money that goes into helping first home buyers getting into a home.
Dave Burnett: Exactly, and if you're looking at spring for a chance to buy a home, don't wait until May. Start on it today and call. By the way, if you didn't catch those numbers you can always find it at CoreGroupRealty.com, that website. 208 933-7777. Movement Mortgage, one of the sponsors of the program along with the folks at Core Group @ eXp. Find out why they say you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, also an associate broker with Core Group @ eXp Realty. CoreGroupRealty.com, that is a website. 208-933-7777, that's a phone number you can call to find out more about Core Group Realty @ eXp, and also you can find out more, just about real estate in general, what's happening in the marketplace, and where we stand.
You know Thom, we've talked about owning a home and the benefits of owning a home, but you know, we're at that tax season.
Thom Dallman: The dreaded tax season.
Dave Burnett: I'm sorry. Hate to bring that up, but we are at that tax season. But, one of the things you'll find on your ... What is it? Schedule A. And by the way, we are not tax experts. Talk to your tax attorney or preparer about it.
Thom Dallman: Yes, please talk to accountant.
Dave Burnett: But you know, one of the things you'll find on your itemized list that is a huge benefit still, hadn't been taken away, and that is, interest on your home loan, on your first home loan.
Thom Dallman: Yeah.
Dave Burnett: It is, you know, tax deductible.
Thom Dallman: It is. One of the biggest reasons, one of the many reasons I should say, not the biggest reasons, one of the many reasons of being a homeowner is the ability to use that interest as a tax kind of write-off-
Dave Burnett: Write-off.
Thom Dallman: ... if you will, and stuff. One of the reasons why we tell people, really evaluate your situation currently, and as you're doing this evaluation on whether to purchase it or not, look at that tax incentive and what that deduction could amount to on your current taxes, and so forth.
Dave Burnett: Because the truth is, if you're a renter, that amount is zero.
Thom Dallman: Exactly.
Dave Burnett: You're paying your rent. Now your landlord on the other hand is able to, write stuff off. But, for a homeowner, and I know for me, that is a big one, the fact that when I get down to itemizing, that I can claim that interest on my home loan. Some of those rules have changed a little bit, like we said, so check with your tax account.
Thom Dallman: Well, it's interesting that you mentioned landlords because that's one of the things to think about too. If you do have a home already and are contemplating doing rental properties and so forth, there's certain advantages to that as far as, being able to write-off expenses for rental incomes, or versus your rental incomes and stuff like that. There's certain advantages also, to renting homes, having that extra income, obviously being a part of that, but also having the write-off of any expenses that you have to pay towards those rental properties is also an advantage.
Dave Burnett: Yeah. What are some of the other things? You've kind of got a list there of some of the advantages to owning a home. It's not just tax advantages, but there's a lot of different advantages to owning a home.
Thom Dallman: Oh my gosh. I mean, there's the basic advantages of when you own a home, you have that flexibility of doing what you want. In an apartment, you can't paint walls, you can't, do things that the landlord won't like, all the way up to being able to invest in yourself and invest in the equity, and get the equity out of your home. Everybody knows about, well, and maybe they don't know, the capital gains situation. Capital gains are paying taxes on profits from a house, but if you live in that house for two of the last five years and go to sell it, you can take up to, I believe it's $250,000, as tax-free income for yourself through the capital gains process. So many advantages to home ownership as far as that goes.
Dave Burnett: It's kind of funny, you talk about the ability to do what you want to with the homes. I remember when my youngest daughter was in junior high, she really, really, really wanted to paint her bedroom purple and black.
Thom Dallman: Oh yeah.
Dave Burnett: If you own a home, you can do that.
Thom Dallman: You can do that.
Dave Burnett: We didn't. We owned the home, but we didn't paint the room purple and black. But, something good and important to know is, if you're going to sell the home, you probably don't want it to be purple and black.
Thom Dallman: Exactly.
Dave Burnett: But if you own the home, you can. You can do what you want. If you want to decorate a certain way or whatever you want to do, you don't have to use the old, well, I'll have to check with the landlord to see if we can do that or not.
Thom Dallman: Exactly. There's other just simple advantages, such as, they say, if you have kids and they're in a certain school district, the advantage of owning a home versus renting is, when that lease comes up and you can't, maybe you don't want to pay for the raise, as you go to look for a new rental property, you might have to find that rental property that's outside of the school district, so your kids have to change schools and so forth. The peace of mind that comes with home ownership, of knowing that you're not going to be moving every year, or running into the rental increase every year because they are, they're going up every year, rents. Landlords are able to charge more and more just due to the lack of inventory out there for rental properties.
Dave Burnett: One of the other things, when you own your home, you don't have to do? You don't have to sneak a pet into your apartment.
Thom Dallman: Correct.
Dave Burnett: Not that I'm encouraging or saying anyone ever would do that.
Thom Dallman: And you don't have that pet deposit.
Dave Burnett: You don't. I mean, if you decide that you want to get a Saint Bernard, you can get a Saint Bernard.
Thom Dallman: Exactly.
Dave Burnett: And, you get to deal at your home. But yeah, when you're renting, for the most part, landlords are not going to want to pet without paying those deposits that you got to do. Again, another benefit to owning a home is, you can decide what pets you own.
Thom Dallman: Exactly. Exactly. There are some things to think about too, when you own a home as far as the saving on your annual taxes. We do have, Idaho has the homeowner's exemption tax relief.
Dave Burnett: Oh, that's right.
Thom Dallman: Where you can get up to $100,000 value of your home removed off the appraised price to where you don't have to pay for that tax portion on that.
Dave Burnett: Correct.
Thom Dallman: It's 50% of the assessed value, up to $100,000 with the cap of $100,000. What that means to say, your home's assessed at $200,000, instead of being taxed on the full $200,000, they'll remove that $100,000, and only tax you on the other $100,000 of the home. Great tax incentive to owning a home, especially if it's your ... Well, it has to be your primary residence. You do have to apply for that by April 15th of the first year that you live in the house.
Dave Burnett: So, if you bought a home in this past year, that's a deadline to make sure you get. I know your agents there at Core Group at eXp Realty, that they kind of go over that and talk to you about it as you're closing, to make sure, here's a deadline, here's the date you need to get this done.
Thom Dallman: Here's the paperwork. Yeah, let's get it filled out real quick. In the next couple of days, get down to the courthouse, file it, get a receipt. Get a receipt, because if you don't have the receipts, there's no proof of it, and unfortunately, the tax department does make mistakes every once in a while. It's something to think about too, if it's your first-time home and is your primary home residence, make sure you apply for that homeowners exemption.
If you're elderly, there's also what's called, the circuit breaker that's available. It's a tax deferment program for those people, and you have to apply for this every year. But, if your income is less than $30,450, I believe it is, your age 65 or older, a widow, blind, there's several different categories that apply to this. But, if you qualify for this, they do differ a lot of your tax, and your taxes can be reduced up to, I think their current limit is $1,320, a tax reduction that gets deferred for you. There's also the circuit breaker program out there available as well. Something to look into if you fall into that category and find yourself struggling to make your payments, and so forth.
Dave Burnett: Kind of to put a bow on this, and wrap this segment up, owning your own home, couple of the advantages. There's the tax advantages and as we said, talk to your tax accountant about that to get those all taken care of. But, the other thing that really stands out to me is freedom. That you have the freedom to own your home and to be the king or queen of your castle, and to do what you want to with your home. If you decide you want to put all mirrors in the bathroom, or paint the bedroom an oddball color, you can do that. Of course the outside of your home, if you have a homeowners association, they might have had something to say about that.
Thom Dallman: They might have something to say about that.
Dave Burnett: But, if you want to landscape your yard and the backyard a certain way, all the rock and no grass or whatever, you can do that. You want to plant a garden? Freedom really is, home ownership to me, equates to freedom, that I have the freedom to do some of the things that I want to do.
Thom Dallman: Exactly.
Dave Burnett: Core Group at eXp Realty is a place to go if you have questions about it. Of course, if you're needing tax advice, I think he'd probably have somebody you can talk to, to have him go talk to about that as well. CoreGroupRealty.com is a website. 208-933-7777, that is the phone number to call. All of this being brought to you by the folks at Movement Mortgage and at Core Group Realty at CoreGroupRealty.com
Thom Dallman: There you go.
Dave Burnett: Find out why they say, you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz. He's Thom Dallman, the co-owner, associate broker at Core Group @ eXp Realty. CoreGroupRealty.com, 208-933-7777, that's the phone number you can call, 208-933-7777, if you want to find out more about real estate, about buying a home, about selling your home. Is now the time to sell? Well, they can give you some answers there, and help give you some comfort and assurance that you're making the right decisions.
Thom Dallman: Exactly.
Dave Burnett: Hard to believe Thom, but we were talking during the last commercial break that the Parade of Homes is not that far away.
Thom Dallman: It's really not. Yeah, it will be here before we even know it. Everybody who listens to the show, and has listened over the last few years knows that this is one of my favorite times of years, when the showcases of all the new trends that are happening out there. Builders really go all out to build these homes with all the newest features in them, the newest trends, the newest looks and stuff like that, so a super exciting time of the year to see what's happening.
Dave Burnett: You know, we've been doing this show long enough now that there are some things that we've talked about in years passed, and we see are real prevalent now as far as, you know, some of the granite countertops, the type of granite countertops or maybe the kinds of floorings they have. There's the concrete walls that they're doing, different things that just over the course of years has almost become commonplace now.
Thom Dallman: Yeah, I'm kind of ... I'm curious to see what this year brings, to say the least, because yeah every year there seems like there's always something kind of new and innovative. The technology nowadays that there is coming out, the smartphone features of heaters.
Dave Burnett: Thermostats.
Thom Dallman: Thermostats that you can control through your phone. Lighting that you can control through your phone. Heck, they even have a refrigerator now that you can use your phone to see what's inside.
Dave Burnett: Well you know, if you're at work and think, "Oh, did we need milk?" You can log in, take a look, and see if you need milk.
Thom Dallman: Yep, crazy.
Dave Burnett: It's just amazing.
Thom Dallman: Exactly.
Dave Burnett: Some of these wifi thermostats that they're making are pretty amazing.
Thom Dallman: Yeah.
Dave Burnett: I mean you can set them manually, but they also kind of record and keep track of what your lifestyle is.
Thom Dallman: They learn your ... Yep.
Dave Burnett: It will adjust itself to your lifestyle.
Thom Dallman: Yep, they start learning what you do day in and day out, so that eventually it just automatically turns itself down in the morning when you leave for work, and turns itself back up when it's time for you to come home and stuff, so ...
Dave Burnett: That is amazing.
Thom Dallman: Yeah, right.
Dave Burnett: It's all in a little thermostat you can hold in the palm of your hand.
Thom Dallman: Yeah, it's crazy the technology that's out there right now.
Dave Burnett: Yeah. Some of the things that you have heard, as you've talked to different builders about what we may see coming this year.
Thom Dallman: Yeah, it's not as much the builders that I've heard from. It's kind of just what I've been seeing online and stuff for 2019 trends. One of them, decoraid.com just came out with a really nice blog that talks about a lot of the natural elements that we're going to see this year being blended into homes, and by natural I'll lament to obviously that means that they're taking things from nature and kind of incorporating them into décor, whether it's on the walls or in just décor in general, so you'll see a lot of natural stuff, a lot of maybe floral wallpapers, floral patterns on wallpapers, and stuff like that.
As an example of what they're kind of bringing nature inside, copper seems to be a popular trend that they're seeing for 2019. You'll see copper being brought into homes, not only in fixtures but in wall ...
Dave Burnett: Decorations?
Thom Dallman: Textures, sorry, textures and stuff like that. Copper panels and stuff like that, we may see that this year, which I find very interesting to see this rusty, coppery kind of wall on a house, and how they can incorporate that into the feel of the home and everything. Like you mentioned, concrete still continues to be a trend, whether it's concrete countertops, whether it's concrete floors, whether it's furniture made with concrete is becoming popular too. Concrete tables and things like that, you're going to see, according to this blog, you're going to see a lot more concrete being integrated into homes as well.
Dave Burnett: When I think concrete, I think of roughed up concrete it's like, "Wow," but they can polish and make this concrete just incredible.
Thom Dallman: Yeah, there's a lot of really cool products out there that makes concrete just look, just amazing, from glazes that you can do to it to make it look almost like there's a galaxy on your floor, if you will, just swirls and patterns and stuff that they can do with these glazes on concrete to really make it really a cool look and stuff.
Dave Burnett: Yeah.
Thom Dallman: There's a lot of new products out there for that.
Dave Burnett: There's no shortage of concrete.
Thom Dallman: No, no.
Dave Burnett: We're doing good there. Wood there may be a shortage of, but concrete, there's no shortage of it.
Thom Dallman: Exactly. We're also, according to this blog, we're going to see a lot of geometric patterns in tiles. If anybody got through some of the houses last year at Spring, we saw a few of these homes that had really fun tiles, that they're putting into kitchens, into bathrooms, and stuff like that, that have these really ornate set of geometric patterns. We're going to be seeing a lot more of those this year, incorporating that into the different living spaces. Giving it a nice, cool, interesting feel to them.
Dave Burnett: Do we know if we're going to see a lot more tile and either hardwood or laminate floors? It seems to be carpeting seems to be less and less every year.
Thom Dallman: Yeah, they're really getting into more of the laminate flooring is what I'm hearing engineered, and the tile flooring as well. Getting away from, yeah carpeting in a lot of homes.
Dave Burnett: It's a lot of ... Carpeting, there's a lot of ... You don't think there's a lot of maintenance, but there really is.
Thom Dallman: Yeah, exactly.
Dave Burnett: When it comes to ...
Thom Dallman: Just the wear and tear on carpeting is so much more evident as it wears down and stuff, where these new, engineered products that they're coming out with just are so forgiving and last forever, and really are husband proof, kid proof, dog proof.
Dave Burnett: We made a change in our house. We took a lot of the carpeting out. There's just a couple rooms with carpeting left, and so we put down laminate engineered flooring, and then we bought one of those little robot vacuums, and it works like a champ.
Thom Dallman: Oh, cool.
Dave Burnett: I mean does it get every spec? No, it does not, but we probably sweep once a week.
Thom Dallman: Cool.
Dave Burnett: Otherwise it works.
Thom Dallman: Do you have a program where it just kind of ...
Dave Burnett: ... Comes out and does it all.
Thom Dallman: There you go.
Dave Burnett: Parks itself and it really does, I'm amazed. I was impressed.
Thom Dallman: That's awesome.
Dave Burnett: Yeah.
Thom Dallman: Yeah, if you have that ability to get one of those, and the floors to let it run around on, that's perfect.
Dave Burnett: Yep, biggest challenge I have now is remembering to empty the stuff out of the robot.
Thom Dallman: Exactly.
Dave Burnett: It doesn't like to work when it's full.
Thom Dallman: Oh, I bet.
Dave Burnett: Yeah.
Thom Dallman: Yeah, that's a few of the trends coming out, and a few more things such as bucket sinks. I've noticed that this last year.
Dave Burnett: What is a bucket sink?
Thom Dallman: Instead of having the smaller, you know, typical two sinks, or two compartment sinks, going into bucket sinks, where it's like one big sink, one big, extra deep sink, kind of the farmer's sinks if you will.
Dave Burnett: Okay.
Thom Dallman: Those are considered bucket sinks. We'll see those incorporated a lot more into homes and stuff. It's amazing how many people are like, "Oh yeah, I love that feel and that look of just that big one, big open sink instead of having the two compartments." Dirty dishes here and clean dishes there, or whatever reason that they ever came out with that.
Dave Burnett: Well I think, you know really, the two compartments, to me, and I could be wrong on this, had to do when people washed dishes manually.
Thom Dallman: Yeah, exactly.
Dave Burnett: One to wash, one to rinse, whereas now for us ...
Thom Dallman: We just have dishwashers.
Dave Burnett: I didn't realize it was called a bucket sink, but we had one. We just cleaned the dishes off and then put them in the dishwasher, good to go.
Thom Dallman: Exactly. Yeah, the need for the two sinks is no longer as necessary as it used to be. I guess one of the final things that I kind of noticed that I think is going to be interesting is the wallpapers and the stone looks to these new wallpapers that are coming out. This particular article talks about agate wallpaper that looks like the inside of an agate stone, is going to become a popular trend this year, so I'm very curious about that, because I haven't seen anything like that here yet, so I'm curious to see if anybody, any of the builders start implementing some of those into their homes.
Wallpaper, in the last couple of years, has come a long ways. More and more wallpaper being used. I don't remember if it was last year, Spring, I remember one builder used this amazing wallpaper that looks like bark on the top, but underneath where the veins and stuff were, it had a silvery, like metal look to it, so it was almost this wood on metal look to this wallpaper. It was in a den, and I just thought, "Gosh, what an amazing wallpaper." Wallpaper has evolved so much from the old days.
Dave Burnett: What it was, yeah. It truly is wall covering.
Thom Dallman: Exactly, exactly.
Dave Burnett: Instead of paper that's glued upon a wall.
Thom Dallman: We'll see a lot more of wallpaper being innovative and coming out with some really cool stuff to create really interesting looks.
Dave Burnett: Well Thom, as we get closer to the Spring Parade of Homes, we'll have some representatives in to talk about some of the things being done here locally, for the Parade of Homes this Spring, but those are a few of the things that you can look at, that perhaps is going to be trending in 2019, and as we head toward 2020. Boy, does that sound odd.
Thom Dallman: Gosh, it does.
Dave Burnett: As we head that direction. You know, if you're thinking about buying a home, if you're thinking about selling your home, if you just want information or curious to do it, get ahold of the folks at CoreGroupRealty.com. Talk to Thom and his staff and find out is it the right time for you to buy, the right time to sell, time to move up, to downsize, and what are the options available to you. We do this program each and every week. Appreciate you stopping by. Tell your friends about it, and right here at this station at the same time every week.
Core Group at eXp Realty