Thom and Dave are talking Parade of Homes today; including some of the new home trends that you might be seeing this year! Ron joins the guys in the studio to talk about one of the factors in alleviating the shortage in inventory here in the Treasure Valley.
Wondering why it is SO important to use a real estate professional to help you with buying or selling a home? Thom talks about just a few of the reasons!
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, also one of the Associate Brokers of Core Group Realty @ eXp, CoreGroupRealty.com, that is the website. (208) 933-7777, that is a phone number for you to call to look to get in touch with the folks at Core Group Realty @ eXp. Thom, it's a another great week to get out to do some purchasing, some buying of a home, looking at properties and just getting out.
Thom Dallman: Yeah. Activity is picking up in the marketplace. It's been kind of a whirlwind two weeks, I guess you could say. Kind of started last two weeks. Inventory is kind of picking up a little bit. People are kind of getting that spring fever to kind of get their homes listed, and get out there and start to... For those that are looking to buy, they're starting to get out and... get out in the rain of all things. I showed property twice this week out in the rain, and start looking at homes again and stuff. So, I love this springtime because it does bring people outdoors. It brings people... it gets people re-interested in going out and just...
With interest rates being so good and inventory starting to pick back up again, I think people are starting to really want to get out and purchase again, so-
Dave Burnett: Yeah. And I think one of the nice things about this time of year is for presentation of a home, you begin to get where the... The daffodils are up, the lawns are turning green, the bushes are... the flowers are on the trees, so-
Thom Dallman: Exactly.
Dave Burnett: Homes are showing very well right now.
Thom Dallman: Exactly. Yeah. They're starting to look a lot better with a green grass, and like you said, flowers starting to pop up. So, I did get some numbers in for March that I thought would be interesting to share with everybody out there, just regarding sales and stuff like that for March in Ada County and Canyon County. So, our sales are actually up from the previous month, from February, 23% in Ada County in 25% in Canyon County. Once again kind of showing that February who was a very slow month.
Dave Burnett: But isn't that kind of traditional?
Thom Dallman: Yes.
Dave Burnett: I mean, Christmas is done, people are getting their Christmas bills and-
Thom Dallman: Yeah, and people just kind of hunkered down through the winter, and... We still had a lot of activity, but it just wasn't as much as usual. But the interesting side note to that is in Ada county, while our sales were up from last month, the month prior, 23%, we were down 3% from last year's numbers. Once again, kind of attesting to the lack of inventory, the need for people to do multiple offers. Things like that kind of all countered into making it so that we have less sales. And we were 9% less in Canyon County from the year prior, from March of 2018. So-
Dave Burnett: But again, a year ago it was white hot.
Thom Dallman: Right, exactly.
Dave Burnett: So, now the market is just hot, it's not white hot.
Thom Dallman: Exactly. And it just goes to show that we're kind of starting to... we've started to level out through the winter. I think we'll see maybe a little bit of an increase, but not as much as we've seen in the past. So, I think that's something to kind of look out for. So, pending sales however are up 13% for the last month, or from last month, but down 11% from the year before. Same with Canyon County. That was Ada county. 16% pending sales are up. 16% from the month prior, but down 11% from the same time last year.
So once again, going to show that just with the lack of inventory, and just this winter people just were not as interested in going out. We were kind of waiting to see if the rates were going to increase, or what rates were going to do. And as we kind of hear in the marketplace, the rates have stayed steady, maybe even dropped a little bit and stuff like that. So, yeah.
Dave Burnett: Spring, hope Spring's eternal everyone excited-
Thom Dallman: Right. Right.
Dave Burnett: ... as kind of a new beginning and for a lot of people kind of dusting off the old and deciding is now the time for me to sell? Is now the time for me to buy?
Thom Dallman: Sure. Sure. I was asked that actually this week from a young couple who had bought their first house several years ago, and kind of are ready to kind of upgrade. And so, their dilemma, do I sell now? Are we at the top of the market? Do I wait and see what happens? And so, my advice to them was it's one of those stock market risk things. You have to take that risk if you're ready for it, and it's that time for you guys. You might want to go ahead and jump on it. We don't know what prices will do over the next year. We don't know what it will be like next year. There're some predictions that they'll start going down next Fall. On the other side, there's predictions saying that we won't go down at all for another two years. So, you just never know. There's no crystal ball to tell.
But in the meantime, interest rates are at the best that they've been, so... and they're remaining steady, so it's still a great time to purchase a house as far as interest rates go and stuff. So, they decided to get out there and start looking and stuff. So, I'm excited to work with them on this adventure for them, so-
Dave Burnett: Well, I guess that's really a reason if somebody is at that point of buying a home or maybe wanting to sell and move up that they could call you at Core Group Realty @ eXp and set up a consultation.
Thom Dallman: Yeah.
Dave Burnett: Just sit down and realistically say, "All right, is this a time? Can I make money on this home?" And that's something that you and your agents would sit down and talk to them about honestly, and hopefully with no pressure.
Thom Dallman: Exactly. We do no obligation consultations all the time, where we can tell you the value of your house. We'll do comparative market analysis and see kind of where your value is. And we'll work with you on what the cost of selling your home is. What you owe on your loan, and kind of give you that idea of what your equity is in the property and stuff, so you know how much equity you have right now. A lot of people are surprised by the amount of equity that they have out there, so-
Dave Burnett: Especially with the amount of value that homes... If you've lived in your home for five years, the value it's accrued in five years is pretty substantial.
Thom Dallman: Exactly. Yeah.
Dave Burnett: Other things you see going on in the market place.
Thom Dallman: Inventory, we keep talking about inventory. The inventory is still low. In Ada County, we went from two month supply down to at 1.7 month supply in the last month. So, we're kind of seeing that kind of decrease in inventory fluctuating between that 1.7, 1.8 and 2.0 or two month's supply. Once again, I know we've talked about it before, but for those new listeners, that means that if we have no more new listings, no more... everybody decides they're not going to sell any more homes, builders decide to stop building, we'd run out of homes to purchase in a little less than two months. Around two months. And that's in Ada County.
Canyon County was similar. They're in the 1.9 to 2.2 month supply range. They've been kind of varying between there. Last year at this time in Canyon County, it was 1.5 month supply, so we're doing better than we were last year. It was 1.6 in Ada County, so we are doing better. We have more inventory, I think just people are kind of loosening up, they're kind of hearing that this might be the top. And so they're starting to kind of get their homes listed and sold and stuff. So, it's great for the inventory, we need that. But that does bring with it an evening out of the marketplace and prices and stuff, so...
Dave Burnett: Yeah, the good with the bad as it were.
Thom Dallman: Exactly.
Dave Burnett: - comes down to that.
Thom Dallman: Exactly. New Construction. New Construction's still prevalent. We're still... We still got a whole lot of new construction out there representing most of our sales. A lot of our sales, not most of them. Sorry. The inventory of new construction has gone up 3.5... I'm sorry, it's gone down. It's 2.6 from 3.5 last month, and 2.7 from last year, which means that the builders are kind of slowing down a little bit. I know that they are loosening up, and are excited for the Spring to come, so they can get things going. But I think the winter kind of was a little bit rough on them. That's what I've been hearing anyways. And so they kind of pulled back for a little bit last couple of months. So, I think we'll see that increase over the spring and summer, we'll see more-
Dave Burnett: And, what I've been told by actually an electrician in the area is that things have slowed down a little bit in part, not be... typically it's because it's cold and they couldn't put foundations in, but that wasn't the case. It's when it's the wet-
Thom Dallman: It's the wet, yeah.
Dave Burnett: ... that they're dealing in mud.
Thom Dallman: Yeah, exactly.
Dave Burnett: So, that's kind of slow things down. So, kind of tough for those working in construction right now, dealing with all the mud.
Thom Dallman: Well, and I think with the low inventory in resell properties that a lot of people are buying up the new homes. So that's also contributing to the decrease in inventory for new homes. They're just being bought up, because-
Dave Burnett: Exactly.
Thom Dallman: ... because no resale homes to buy. So yeah, new construction is super prevalent, and I'm super excited about the parade of homes coming up. We'll talk about that in a later segment, but Parade of Homes is coming up at the end of the month, where we'll get to see some of the new construction ideas out there and stuff. So, make sure you get that on your calendar too.
Dave Burnett: In fact, I think I saw a Core Group, the Facebook page, didn't you have a post in about that?
Thom Dallman: Sure did, this week?
Dave Burnett: All right, see I was paying attention. And I do want to mention one of the things, if you're in Facebook fan you can go on and friend-
Thom Dallman: Like our page.
Dave Burnett: ... and like the page and that way you can keep up to date, especially as we come into the parade of homes.
Thom Dallman: Yeah, exactly. We'll be posting a lot of information there about the parade of homes on our Facebook page as well as on our CoreGroupRealty.com website, because it's... Everybody who's listened to this show knows that one of my favorite and one of my agents' favorite events every year is to see the spring parade of homes and-
Dave Burnett: Kind of your Christmas.
Thom Dallman: ... go visit the... Yeah, it really is. It really is. I love going out and seeing all the new homes and what the new amendments or amenities are for the homes that are going in. Some of the new trends that are happening, and just all the tiles and wood flooring and things like that. So, super exciting.
Dave Burnett: It is good. CoreGroupRealty.com that is a website to go to. Of course, you can catch a all of these programs and also all of the blogs which I like as well. As Thom and his crew, they get together and some of the things we talked about here, some other things as well are blogged about on the website. So, check that out at CoreGroupRealty.com. And of course you can always call (208) 933-7777. This is the Idaho Real Estate Buzz being brought to you by Flagstar Bank. In fact, we'll talk to Ron in just a minute, find out what's happening in the world of finance, and of course, brought to you by Core Group Realty @ 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, associate broker of Core Group Realty @eXp. His website CoreGroupRealty.com and the phone number 208-933-7777. I always get a chance to talk to Ron with Flagstar Bank, an equal opportunity lender, to talk about things going on. Ron, while we've had a wet spring, while we've had a stormy spring, it's actually a good spring.
Ron Wieczorek: It been a great spring. I'll use the rain as kind of a ... it's the perfect storm. It's fueling a strong spring. There's three real factors that go into that. And Thom can attest to-
Thom Dallman: I can.
Ron Wieczorek: ... we're seeing a lot more activity in the real estate market.
Thom Dallman: Yeah, things are happening. We talked last week about the listings that we've gotten on and how quickly they've all sold and so forth. So there's a lot of buyers out there right now if you want to list your home.
Ron Wieczorek: And there's even more buyers than there were a year ago. And these three reasons ... I'll start with factor one-
Dave Burnett: Okay. Before you start though, if I remember right, last winter at this point we were going, "Yikes. It may be a rough row ahead in the next six months," because at that point they were talking interest rate raises. They were talking about all of these different things and it was kind of like, "What in the world does the spring hold," and now it turns out the perfect storm is brewing.
Ron Wieczorek: It's kind of a reverse course completely with that mantra and that thought process. So the Fed, March 20th will to go to the Fed announcing the rate hike decision. The Federal Reserve held the interest rates steady following the federal open market committee meeting, that's the central bank's governing body. It's consistent with what they're trying to do. They're statutory mandate is to foster maximum employment, price stability, and I always talk about inflation, so that's the key components of what they're going to do with the rates.
In support of these goals, the committee decided to maintain the target federal funds rate, and they used a range from 2 1/4 to 2 1/2. Well, currently that rate is sitting at 2 1/2, so maybe I'm over reading into it when they say we want to keep it between 2 1/4 and 2 1/2, not only are they suggesting to me that they're going to keep it the same, but they're almost insinuating that it might even go down over the course of the next year, year and a half. Or maybe they just said 2 1/4 to 2 1/2, and they meant 2 1/2, but I read into things.
Dave Burnett: Either way it doesn't appear that there's going to be a massive increase anywhere.
Ron Wieczorek: No, and I believe that to be the case that there's not. 2018, like you alluded to, we saw four rate hikes. And what you're talking about in winter is they were talking about potentially three more rate hikes over the course of 2019, and everyone was saying, oh the rates are already around five. We're going to see six here soon. That's going to carve a lot of people out of the buyer's market, and that's absolutely true if that happened that would be the result. Well, then three became two, two became one, and now the talk is what I'm reading into maybe a lowering. And it may not be, but that's not always a one to one for mortgage rates.
When the Fed, that's the overnight lending rate that banks give other banks to lend money, so the mortgage rates have fallen. There was heavy bond purchasing leading up to the Feds meeting, and they anticipated a more dovish stance on the Central Bank, and it ended up being true. And when that happened, we have seen the ... And I talked about the rates being near five, maybe flirting with six. Now, we see it floating down to early fours, mid-fours, depending on what your credit and equity stance is, and that makes a big, big difference. When you have that kind rate moving, it prompts more potential home buyers to step back in the market.
We saw a lot of people like you said got out of the market because they got that buyer fatigue. Maybe there was multiple offers and maybe they qualified for more than they did before the rates went up, and then they're like, "I already couldn't find my dream house at that. Now, I really can't find my dream house with the lower amount that I'm approved for." Rates ease up half point, 3/4 of a point, all of a sudden, they're back in the ballgame. So that's what we're seeing. That's me and Thom's job to re-engage those clients and educate them. You hear it on the news, you hear it on the radio, and you hear it a lot, but it's never too much to have that education and have that conversation. So that's factor one: rates.
The second one is the slowing of the home appreciation. It sank to it's lowest level since 2017. After declining month over month for 44 straight months, we finally saw ... and this is US. We saw home inventory increase by one percent, which is a large number after seeing 44 months of decline in inventory to see a little more inventory free up. So not only are there more buyers back in the market, but there's a little more inventory. It's not as much in the valley yet that we see a lot of that inventory popping back up, but that's the trend that's happening. So that's awesome for new home buyers.
Dave Burnett: What would be the reason? Do you have an idea as to why we suddenly see a reversal and it going back up?
Ron Wieczorek: There's a lot of counties where ... you talk about coastal counties, you talk about the East Coast, San Jose and San Francisco always come to my mind, because they were so expensive, and they were getting so out of control that they were just carving such a big section of potential buyers that made good incomes out of the markets. So I think that's a big piece of it. I also think it can't go up forever at that pace that they were going up. So just because it slows down, I still see appreciation in the US. I see it in the valley. But I don't think it's going to be 18, 20% like it was the year before.
Dave Burnett: It can't. It's can't sustain it.
Ron Wieczorek: Right. You have to at some point pump the brakes a little bit, and the knee jerk reaction with everybody is to "Oh my gosh. It didn't go up a lot. Is it a good time to sell? Is it a good time to buy? Where are we going? Are we going to hit a recession?" And all a recession means is three months in a row that has maybe a little bit lower price and then they call that a recession. But I don't think that we're going to see that. But I do think that it's great that it's stalled.
So now you have the mortgage rates go down, you have the appreciation slowing down a little bit, and the third factor is wages. Income has continued to increase. The average household income increased 4% since December of 2017. And since January 2000, it's been over 55%.
Thom Dallman: Wow. That's awesome.
Ron Wieczorek: Some of that's dual income. Some of that's just the economy is doing a lot better. But that's a huge number, 55% since 2000. What all three of those factors mean ... How we doing on time?
Dave Burnett: Oh we're fine.
Ron Wieczorek: Okay.
Dave Burnett: We're doing good.
Ron Wieczorek: Okay. Usually I see the eyes wandering a little bit. But the decrease in mortgage rates will allow more home buyers to afford more house than it was possible a few months ago. We talked about that. The decrease in mortgage rates will also invite those buyers that maybe had that fatigue or gave up to come back into the market. The slowing of the home appreciation will keep the home prices more manageable and will allow the same buyers getting a boost in purchasing power, so even if that buyer was in the market two, three months ago and they're still in the market and they're still excited, now they can purchase more than they were able to before, and that's exciting.
The more inventory will allow home buyers to not feel as much pressure. There's still a lot of price points where you see multiple offers and bidding wars, but it's not as prevalent as it was last summer. A lot of times if you have a buyer that feels like they're making a pressure decision, they back off. That's human nature to say I was forced into this. Even if you write a contract and get it accepted, there might be a little buyer's remorse because you're like, "I did it in the height of competition. I said yes, and now we look at this again and we don't know if this is the right decision," so it gives them a little more time to make the educated decision.
And increased wages facilitate those higher price points. So now you're going to see that as you go up the spectrum, we're not just talking about entry level homes. Now, we're talking about maybe loosening up where there's a lot of real inventory. A lot of the real inventory we see is those second-tier priced homes and those third price tier homes where they're higher price points, so there has to be a loosening of that. And with those increased wages, you'll see those homes at least getting more offers and more activities and maybe not standing on the market as long as they were before.
Dave Burnett: Now here in the Treasure Valley though, things are still fairly tight here though, are they not?
Ron Wieczorek: They are fairly tight. And Thom can speak more about what he's seeing on that end. But, I always talk about the US numbers and I try to circle back to Boise. But Boise still doesn't represent what's going on in the US as much, because we're-
Dave Burnett: We continue to grow.
Ron Wieczorek: We continue to grow. We're insulated by that.
Thom Dallman: We're a secret little bubble. Not so secret because everybody's hearing about us. Once again, number one on livability.com but-
Ron Wieczorek: I get nervous when I hear someone say bubble. I want you-
Thom Dallman: Not that kind of bubble.
Ron Wieczorek: I want you to come up with a new term in real estate that's not bubble, because I just fell out of my seat here.
Dave Burnett: Champagne is not Ron's favorite word.
Ron Wieczorek: No, not at all.
Thom Dallman: We're in our own little plastic bag. Does that sound better?
Ron Wieczorek: I don't know.
Thom Dallman: No, that sounds creepy. Anyway.
Ron Wieczorek: Yeah, that sounds serial killer-ish.
Thom Dallman: Exactly.
Dave Burnett: But-
Ron Wieczorek: So in addition to that, real quick, we saw a recent increase in housing starts, which means home builders are pushing through new construction projects. They are getting money at a cheaper rate, and that should alleviate some of that shortage we saw in supply, so that's exciting as well.
Dave Burnett: I was going to say that with all of this good news for the consumer, that's even better news for the builder.
Ron Wieczorek: Absolutely. And they're always a few months behind, meaning that as we get the information and as our world is being impacted, three months later they're like, "Oh man, now we can build again."
Dave Burnett: Well, they're finishing up their projects they were on and getting ready for the next projects to come on. Ron, if someone wants to get a hold of you there at Flagstar Bank, how do they do that?
Ron Wieczorek: My cell phone, it's always on me, is area code 208-869-9154.
Dave Burnett: And as Thom as always a preacher of, "Get pre-approved, get pre-approved-
Thom Dallman: Get pre-approved.
Dave Burnett: Yep. Spring time and before you know it, summer will be on us and it will be really the height of buying season, so now's a great time to get hold of Ron at Flagstar and get pre-approved. Doesn't hurt a thing to get pre-approved for that loan.
Ron Wieczorek: I'm excited about the spring home buying season. It's going to be stronger than anticipated.
Thom Dallman: I agree, I agree.
Dave Burnett: And if you did not catch Ron's number, you can always go to the Core.com website and get it there on one of the preferred vendors, and give Ron a call to find out about that and to schedule a chance to sit down, talk with him, and talk about getting pre-approved for a loan.
This is the Idaho Real Estate Buzz. We'll continue on the other side. Do this, give them a call today at 208-933-7777. That being Core Group Realty one of the sponsors of this show along with Flagstar Bank. We'll continue on the other side. 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 at Core Group Realty @ eXp. CoreGroupRealty.com, the website. 208-933-7777, that would be the phone number for you to call to talk to the folks at Core. Spring time coming up and for Thom, it is Christmas in the spring.
Thom Dallman: Christmas in spring, because of my favorite events.
Dave Burnett: Which has nothing to do with Santa, but it has everything to do with the Parade of Homes.
Thom Dallman: The Parade of Homes. 2019 Spring Parade of Home Show's going to start at the end of this month. April 27th is when it starts. I'm so excited, because it's a great opportunity to get out there and see a lot of the new trending stuff that's happening in the marketplace.
Dave Burnett: In fact, that's one of the requirements, that they have to have a new feature or something new in the homes.
Thom Dallman: It has to be a new floor plan for them and they have to have new features or something that's kind of new and trendy and whatnot, so, it's a great opportunity for builders to showcase what they have, what they do, what they can do. And stuff like that. And it's a great opportunity if you're looking to build, to get out there and see what the builders are like and find a good match for you.
Dave Burnett: Because there is a difference.
Thom Dallman: There is.
Dave Burnett: I mean, there's a huge difference. Builders aren't just builders. Some are very high end, very quality, very expensive. And some are just thrown together.
Thom Dallman: Exactly.
Dave Burnett: And you have to make your choice and decide what you want to do.
Thom Dallman: Exactly.
Dave Burnett: And it's a good way to see quality homes.
Thom Dallman: Oh, for sure. Just well done homes that have all the amenities in them and all the upgrades, because they want to showcase their best stuff, so-
Dave Burnett: Exactly.
Thom Dallman: And I'm excited, next week, we'll have a representative from the BCA, which is the Building Contractors Association of Southwestern Idaho. We'll have a representative from the BCA here to talk a little bit more about the event and kind of what we'll see and things like that, so-
Dave Burnett: Perfect.
Thom Dallman: But in the meantime, I thought maybe we'd talk a little bit about what I think we're going to see.
Dave Burnett: I always like this, because when it comes to new trends, in fact, we've been doing this show long enough now that things we've talked about that were new trends are just kind of old hat now.
Thom Dallman: Right? Exactly.
Dave Burnett: No-ring doorbells and the smart systems.
Thom Dallman: Well, we'll see some of that stuff still. That stuff will be-
Dave Burnett: Well, they keep innovating.
Thom Dallman: They keep innovating them. It's just crazy how much you can control from your cell phone. Smartphone interactive appliances is one of the technologically advanced things that they have been talking about.
Dave Burnett: Your appliances?
Thom Dallman: Appliances and, of course, your thermostats and stuff like that. But we'll see now appliances that you can actually, supposedly, this was on a report that was done by Houzz.com. H-O-U-Z-Z.com. If you go there, they have a 32 home design trends that they believe will rule 2019 and stuff like that. So one of the sections in there, it does talk about just that technology coming into the house and how that's going to look.
Dave Burnett: Well, I hesitated when you said appliances, but I thought, I did see at Home Depot they had a refrigerator that you could access with your smartphone and see inside. Which initially, I thought, well, how dumb is that? But this week, my wife called me when I was at work and said, "Do we need milk?" And I went, "I don't know." And I thought, if I had that, I could look in my fridge and see how much milk we had.
Thom Dallman: For sure. For sure.
Dave Burnett: So it could be handy.
Thom Dallman: It's one of those things that you don't think about and, like you said, you think is kind of silly, but when you think about the practicality of how many time has your significant other called you up and said, "Do you remember what the creamer situation is in the refrigerator? For coffee in the morning?"
Dave Burnett: Do we need butter? Do we need eggs?
Thom Dallman: Do you know if we need eggs?
Dave Burnett: So it would be one of those things that once you started using it, you'd like it.
Thom Dallman: Exactly. I wonder at what point they're going to start putting cameras in the pantry and have pantry cams so you can actually look in the pantry and say-
Dave Burnett: Not a bad idea.
Thom Dallman: "Do we need cereal? Do we need flour?"
Dave Burnett: Not a bad idea.
Thom Dallman: Of course, that means that your pantry is going to have to be well-organized, as well as your refrigerator-
Dave Burnett: Good point.
Thom Dallman: ... so you can actually identify things in them.
Dave Burnett: But when I first saw it, I thought, how crazy is that? But the more you think about it, that would be handy to have.
Thom Dallman: Exactly. Exactly.
Dave Burnett: Some of the other things we may see?
Thom Dallman: In the kitchen, let's talk about some kitchen stuff that we'll probably be seeing, hopefully in the Parade of Homes. A lot of people are really wanting to get into that bright, open living spaces, so one of the things they kind of reported that we'll probably see is a lot of upper cabinets being taking down and replaced by windows so that you have a big wall of windows in your kitchen so that you have a lot of natural light coming in. The cabinets moving to more lower level or upper cabinets along the other walls, if you will, so that you're getting light and windows seem to be coming a real big item in homes. People want those open windows, want that light coming in.
Dave Burnett: Lots of light.
Thom Dallman: Lots of light. We don't want to be in the dark anymore and so forth, so, and along that lines also, we're going to see a lot of full tile back splashes and by that I mean, tile back splashes that go all the way up to the ceilings, not just kind of halfway up and-
Dave Burnett: Well, we're going to get rid of the upper cabinets, so you could go all the way up.
Thom Dallman: Exactly. Exactly. So we'll see a lot of that, they're saying. They're guessing that we'll see a lot of that this year. Also, along the lines of that tile, that subway style tile is very popular. It was popular last year. We're going to see it again this year in a lot of the homes. So tiles, very plain white tiles kind of like you would see in a subway station are kind of some popular trends that we'll see in the kitchen.
Dave Burnett: And they do come, actually, not just white. They come in a gray, they come in a tan. They come in lots of different colors, as well, with a crackled finish is on them as opposed to plain white.
Thom Dallman: Oh, gosh. Tile.
Dave Burnett: There's a lot of ways they've come.
Thom Dallman: There are so many different varieties of tile these days and such a variety, it's just amazing to me, to see. One of my favorites is a tile that has it's all round circles in various sizes, but it's granite incorporated in with metal pieces as well.
Dave Burnett: Oh, wow.
Thom Dallman: So it's kind of this really nice collage of granites and metals and stuff like that that creates just a really stunning visual effect. Kind of pricey, so I don't know if I'll ever do it, but tiles are becoming so ornate right now and so beautiful and there's such a variety that a lot of people are tending towards tile.
Dave Burnett: And can really add to the value of your home.
Thom Dallman: It can add to the value. They accentuate a space very well. Tile in your entryway, coming in. Practical and beautiful. Tile. So adding color into your kitchen, via the tiles, is a huge, huge trend that we'll probably see. A lot of white cabinets or even dark cabinets with the color being in the back splash and stuff. We'll see islands that are colored, as well. We saw that quite a bit last year, but I think we'll see more of it this year. It's in this article as well, saying that blue seems to be the going trend for this year on the island cabinets, being kind of a blue color.
Dave Burnett: So while the other cabinets may be white or wood-
Thom Dallman: Correct.
Dave Burnett: ... the island would be a different color.
Thom Dallman: Correct. Which I did sell a house at the end of last year that had that look to it, which was just a stunning look. So wood on wood. Wood is still prevalent. We're going to start to see a lot more wood, natural wood looks, too, in homes, depending on the style of home and whatnot. So whether it's wood cabinets and the natural wood cabinets in the kitchen. Wood floors, obviously. Wood paneling on the walls. There's some amazing wallpapers out there right now that actually emulate kind of wood bark look to them and stuff, so wallpaper is probably something that we'll see a lot more of this year.
Dave Burnett: But not the big flower grandma-
Thom Dallman: Not the big flower grandma stuff. No. I don't actually-
Dave Burnett: No offense to grandmas.
Thom Dallman: I did actually preview a house that had some of that in it. Recently. Quite dated, but yeah, I'm talking like some really beautiful ornate wallpapers that have-
Dave Burnett: Textures.
Thom Dallman: Great textures to them. And really create an accent wall that really stands out and becomes a conversation piece, so... What else do we got? Let's see on this report here. The countertops once again becoming, countertops have always been a major part of the kitchen. And we'll see a lot the granites and a lot of the different materials being used for countertops. Concrete was kind of a thing for a little while. I don't know if that'll come back or not, but I would like to see more concrete countertops myself.
Dave Burnett: Well, I just yesterday, as I was driving down the road, there was a truck with a trailer on it, hauling a concrete countertop that had the hole cut out for the sink. And I thought, there you go. There's one. I thought of you when I saw that. I thought of you.
Thom Dallman: Exactly.
Dave Burnett: And I thought, there you go, polish that up. That's going to be a nice countertop.
Thom Dallman: For sure.
Dave Burnett: So that was good.
Thom Dallman: And then black. Black is coming back.
Dave Burnett: As far as colors?
Thom Dallman: That's what Houzz.com says. Is that you're going to see a lot more black being incorporated into homes as an accent color, kind of being blended in with a lot of the other stuff, but as an accent piece. So you'll see a lot of trims in black and stuff like that.
Dave Burnett: Black is in.
Thom Dallman: Black is back.
Dave Burnett: I go back to years past. Remember when the intercom was a big deal in a home?
Thom Dallman: Yeah. Right.
Dave Burnett: I mean, seriously.
Thom Dallman: Exactly.
Dave Burnett: And if you didn't connect with that front porch or I can't remember what they called them. The butler vacuum, where in the kitchen, you open it up and you sweep the dust into there. That was a huge innovation. But you think back to the huge innovations that over the years now, is like, look at that. It's an intercom system.
Thom Dallman: Right.
Dave Burnett: A very different sort of thing. So Parade of Homes coming up. So we'll keep you in touch with that, but I do want to encourage you. Go to Facebook like the Core Group Realty Facebook page. That way you'll keep up to date as things are happening with Parade of Homes and can know what is going on. The Idaho Real Estate Buzz being brought to you by the folks at Flagstar Bank and, of course, Core Group Realty @ eXp. Here's that website. CoreGroupRealty.com. You can always call 208-933-7777. 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 one of the Associate Brokers at Core Group Realty at EXP. CoreGroupRealty.com the website, and of course (208) 933-7777, that's the anytime phone number you can call and get more information.
Thom Dallman: Always have someone standing by waiting for your call.
Dave Burnett: Yup. Or You could stop by right over on Emerald just a west of the Boise Towne Square Mall. You can't miss it. Big sign says, Core Group right out of the front of it.
Thom Dallman: Right. Exactly.
Dave Burnett: You know, Thom, buying and selling a home, one of the biggest, no, I will say for me the biggest transaction, biggest business deal of my life.
Thom Dallman: Exactly. For a lot of people. We're talking a lot of people who are investing a lot of money-
Dave Burnett: Yup. Hundreds of thousands of dollars.
Thom Dallman: Yeah. And it's an investment. It's a risk, usually a lucrative risk. You're investing in yourself, and the longer you can hold onto it, the better you will be. As the market ebbs and flows through its cycles, there's always going to be a time where you should be able to get equity out of it, and invest in yourself.
Dave Burnett: Which is part of the reason for this show. It's not just about buying and selling homes. Thom, you could do that without your show. You could just do that with your company. But it's about giving people knowledge and understanding how things work, whether honestly whether you use Core Group Realty at EXP or you use another company. We do encourage you use a valid good company, but just knowledge of how these things work, and sometimes when it comes down to real estate, the legalities involved with it, the terms, the all of that can become overwhelming.
Thom Dallman: It can for a lot of people. And there's a lot to go through and a lot that you can risk legally if it's not done correctly, and you can lose a lot of money if it's done 10 correctly.
Dave Burnett: Well, you think about it, I guess that's a reason why for a real estate agent they have to be licensed. You can't just go, I think I'll do that today. No. You have to go through the training, the schooling, the understanding to get licensed, and then the broker on top of that it owns has more to have to go through. So, anytime there's licensing involved in something, there's a reason for it.
Thom Dallman: Exactly. And it's really so that we can help benefit the consumer, the home buyer, the home seller in the best way possible to avoid legal entanglements. Cause a lot of the legal entanglements that happen because of lack of knowledge of the real estate industry and lack of proper verbiage on contracts. That's where a lot of the lawsuits happen. I just recently went through ... We do our continuing education classes, and one of them is called our core class. Each year we have a core class that goes over those legal lawsuits. I always find it fascinating to see what kind of things happen out there in the industry that even real estate agents out there, they mess up sometimes and don't promote the best interests of their clients. And so it's a learning purpose for us to be able to make sure that we learned from it and don't make mistakes, like missing certain verbiage and things on contracts and stuff like that.
Dave Burnett: Can that go from anything from easements that you're not aware-
Thom Dallman: Correct.
Dave Burnett: Or don't include-
Thom Dallman: Making sure you're-
Dave Burnett: Just not writing it up right.
Thom Dallman: Yeah. Just making sure that the contract itself is written correctly containing all the most important parts of the contract, to taking a look at the easements and saying, hey, there might be an issue here. You might want to investigate this further. Ultimately it does fall on the buyer to do the research and do their due diligence. They have that responsibility, it doesn't fall solely on the agents. But at the same time the agent is there to provide them the resources to get that information and direct them to the right places to gather information.
Dave Burnett: Well, and that's where experience and doing it day in and day out makes a difference.
Thom Dallman: Correct.
Dave Burnett: I'll buy a house once every five or seven years. You guys are involved in it daily.
Thom Dallman: Exactly.
Dave Burnett: That does make a difference, it really does.
Thom Dallman: Exactly.
Dave Burnett: Because, and just speaking honestly, there are those out there go, that real estate guy, he just wants his percentage cut of the thing and that's all he's out for.
Thom Dallman: Exactly.
Dave Burnett: That's not true, there's training and schooling that goes behind it.
Thom Dallman: It's interesting that you should say that cause I belong to a big circle of agents throughout the nation that we talk all the time on a private Facebook group, and one of them just recently posted about it's the first time, he's been in business for 20 something years, has never walked out of a listing appointment before. But the seller has gone through, this was his seventh time trying to sell his house, seventh realtor, but he's interviewed 30 something plus realtors. And basically through the whole first half hour I guess it was or something like that, basically had nothing nice to say about realtors and just hated the fact that he had to use a realtor, blah, blah, blah. And so, he posted, he's like, this is the first time I've ever got up and walked out of a listing appointments. Said, maybe you should do this for sale by owner. Maybe a for sale by owner is the best way for you if you really don't value a realtor and the value that they bring to helping you, then you just-
Dave Burnett: Write yourself.
Thom Dallman: Write yourself.
Dave Burnett: See how that works out.
Thom Dallman: Exactly.
Dave Burnett: Let's talk about some of those elements of knowing that you have a valid contract.
Thom Dallman: Oh sure, sure. Yeah. Our contracts, the real estate commission has designed our contracts to include all the valid things that it needs to have. For example, it needs to have that legal purpose. Obviously illegal purposes to purchase the real estate, the property itself, real property and all the fixtures on that property. So it's gotta be tied to a specific property, so it needs that legal description. That's the most important part is a valid legal description of the property. It can't just be an address. A lot of people think, oh, I can just put the address on there and that will suffice. But addresses actually are not considered the actual legal description. There's a big long lot, block, and plat, and there's even more accurate one in which is the meets and bounds description of the property that's usually filed within the city that you can get as well.
But for the most part, the lot and block is the legal description that is required on real estate to sell it. So that's got to be very specific. One number off or one wrong one-
Dave Burnett: One wrong letter.
Thom Dallman: One wrong mistake and you're buying a different house than what you think you're buying. So that's why it's super important make sure that you're looking at that legal description on your contract. All contracts have to have a specific start and end date. There are a lot of lawsuits that have happened over time because the end date of the contract was not ... Was vague. For example, I've seen a contracts where an agent had put in the closing to be two weeks after the inspection time frame. Like what? There's no description, no timeframe for that for when that date starts. And so that contract had to be amended with an end dates, so it's always very important to make sure that it has some kind of an end date that's not ambiguous because if we come to that what one person thinks is the time that they should be owning the house and moving in maybe different than what the seller is thinking should have been the time that they are doing it.
So making sure that you have a specific end date where you know that this is the day that the property's going to be transferred. You're gonna hand keys over to the buyer and stuff like that. So, and one of the things that we often talk about too is the parties in the transaction have to be competent, first of all. They have to be aware of what's happening and not incapacitated in any way. You can't be drunk and write a contract.
Dave Burnett: Alzheimer's, you can't take advantage of somebody.
Thom Dallman: Exactly. Exactly. They have to be over legal age of course to purchase property as well. You can't be 15 years old and go out and buy a property necessarily. So you have to be competent, you have to give consent. So it has to have full signatures. Typically on contracts what we do with the real estate commissions contracts that we have, is each page is initialed and dated to prove that that person has reviewed that each page, but more importantly is a signature and a date and time at the end of the contract. Acknowledging everything in that contract is definitely something super important to make sure that you have that consent. So, and then of course consideration, whether that's the money that you're going to give to buy the house, whether it's, I'm going to give you hugs for a whole year to purchase this house. It's got to have some kind of consideration to be considered a valid-
Dave Burnett: Or I'll give you this much money and swap you this plot of land.
Thom Dallman: Exactly.
Dave Burnett: Whatever it may be.
Thom Dallman: Exactly. Well and I mean that's a good example of an exchange. We've had people reach out to us and say, hey, I have this house in Hawaii. It was a Hawaii house specifically. I would like to exchange it for another house in Boise.
Dave Burnett: Sold.
Thom Dallman: Right. The trick to that being that the cost of homes in Hawaii are very different than the cost of homes here. So to find an equivalent house and to find someone who's willing to swap that house was-
Dave Burnett: That's a challenge.
Thom Dallman: Yeah. Was a challenge that we couldn't provide, unfortunately. So yeah, I mean there is such a thing as a house trade contract. so where the consideration is actually one house for another.
Dave Burnett: Yeah. Well the bottom line that I see with this when it comes to seeing a contract, there's one word that comes to my mind and that is confidence. That I as a customer of Core Group Realty at EXP, that I have confidence that you have all your ducks in a line and I would assume that there's a way that as we sit down and talk together that you can share and show that this is how this is going to work.
Thom Dallman: Exactly. Yeah. Yeah. That's one of my favorite things is actually sitting down and just talking to you about the whole process. What to expect through the process, because there's a lot there. There's a lot to think about. Not a lot of people realize the financial parts of the transaction leading up to the closing and the transfer of money for the purchase of the house. But the little things in between as well as inspecting timeframes, and appraisal-
Dave Burnett: Oh my goodness.
Thom Dallman: Exactly. That's exactly why we do this radio show is to help educate people on that kind of stuff.
Dave Burnett: There's a lot of moving parts to it.
Thom Dallman: Yes, exactly.
Dave Burnett: It would be nice if it'd be, I'll give you two bags of rocks, Thom, and you give me that land. But that's not the world we live in these days.
Thom Dallman: Exactly.
Dave Burnett: If somebody wants to get hold of there, Core Group Realty at EXP, Thom, how do they do it?
Thom Dallman: Give us a call. (208) 933-7777. You can email us at Info@CoreGroupRealty.com, or you can just go to our website, CoreGroupRealty.com, and check out our page. There's all kinds of information. These radio shows or a posted it on there under the blog section, Idaho Real Estate Buzz.
Dave Burnett: Perfect.
Thom Dallman: And then there's also ability to contact us on that site as well that'll send us a message.
Dave Burnett: It is the do all website for you. Very user friendly. You will like it. CoreGroupRealty.com. The Idaho Real Estate Buzz being brought to you by Flagstar Bank, and of course, Core Group Realty at EXP. Call them today, (208) 933-7777. find out why they say, you get more with Core.
Core Group at eXp Realty