Are you hoping to be in your new home by the holidays? Now is the time to start looking! Ron Wieczorek joins Thom and Dave to talk about our current market. Maybe you are looking for a triplex, duplex or other multi-family units? The guys chat about those options as well!

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Segment 1


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's the phone number you can always dial to talk to somebody and get in touch with an agent. If you any questions, that's the number to call.

Thom Dallman:                  Give us a call. I'd love to hear your questions. As I've mentioned in the past, these questions are what kind of lead to some of our topics that we talk about on this radio show. Love to hear what people are thinking about and what kind of questions we can answer and stuff like that.

Dave Burnett:                    Well, real estate is changing in the valley almost on a weekly basis.

Thom Dallman:                  Kind of, sort of.

Dave Burnett:                    Where people are buying. Where they're selling. Where people are building, interest rates, the marketplace. Is it hot? Is it cold? It just changes week to week.

Thom Dallman:                  It does really change week to week. It really kind of depends on the temperature of what's happening in our area. Holidays help make the switch to... Just you never know from week to week what you're going to get.

Dave Burnett:                    When you say holidays, some people begin to cringe up a bit.

Thom Dallman:                  The holidays are coming.

Dave Burnett:                    The Halloween stuff is out in the stores. Christmas stuff is coming. If you want to get in a home by Thanksgiving, Christmas, you really need to start moving now.

Thom Dallman:                  Yeah, you need to really start thinking about because going through the pre-qualification process because that's important. We talk about it all the time. It could take a few days. Then getting out, looking at property, identifying that right house. A couple weeks in there because it's not usual that you would just go out on your first try and find that perfect home. It may happen. We hope so, but then you have a 30 to 45 day escrow, unless you're paying cash. If you pay cash, then you only have two weeks.

Dave Burnett:                    Cash is king.

Thom Dallman:                  Yeah, you have 30 to 45 days. If you think about where we're at right now, 30 to 45 days puts us right at Halloween.

Dave Burnett:                    Yeah, and the next thing you know, to me, that's the slippery slope to the Super Bowl.

Thom Dallman:                  Yup, exactly.

Dave Burnett:                    You rip through Halloween. Then comes Thanksgiving and then Christmas. Next thing you know New Year's, and then it's the Super Bowl. It's like where did the winter go?

Thom Dallman:                  Exactly.

Dave Burnett:                    You do have a new listing today.

Thom Dallman:                  Yeah, we have a great opportunity in Nampa. This house is at 610 9th Avenue South. Well, it's kind of listed as a three bedroom, three bath, single level with below-ground basement, 2040 square feet. We've been kind of talking to them over the last couple years going back and forth on different things. They've been slowly doing a remodel on the house because it was originally turned into a triplex. It actually has the bones and still has the ability to be a triplex or even a duplex, depending on what you want to do because it's in the middle of the remodel right now.

Dave Burnett:                    Oh, okay.

Thom Dallman:                  They're not quite finished with it. There's still a lot of potential with it, so it's a great investment opportunity for those who are looking to do some kind of an investment into either a rental property or turning it and just flipping it into a single-family home. It's listed at $167,900, so great price point to be able to go in and do something. Especially at 2,040 square feet to turn it into whatever you want it to.

Dave Burnett:                    In your estimation, is it a lot of construction that needs to be finished on it, remodel, or a little or?

Thom Dallman:                  I'm going to say in the middle.

Dave Burnett:                    Okay. That's a nice, safe thought.

Thom Dallman:                  I like to say it's in the middle of its work. Once again, it kind of depends on the person purchasing the property.

Dave Burnett:                    If they're a do-it-your-selfer or if they're going to contract it.

Thom Dallman:                  Exactly. Exactly how much money you want to put into it. There are building materials there that go with property. That's also an assessment of do you want to use what's there? Do you want to get more upgraded, amenities and what not. Yeah, it really kind of depends on what you want to do with it.

Dave Burnett:                    It's something my wife and I talked about at one time. We decided to go a different way, but we thought about in retirement to purchase like a duplex or triplex. Have one part of it that's ours, and we go away in the winter time. Then the other two used as an investment.

Thom Dallman:                  That's a great way to retire and to get a little bit of income coming in for your retirement, help pay for the mortgage. It's also great for a first-time home buyer. If you can qualify for a loan that gets you into a duplex or a triplex, there's some great opportunities out there to be able to supplement your house payment by renting out that second half. You're an in-house landlord, so you can kind of monitor your tenants a little bit closer and stuff like that.

                                                Currently, because I was curious about triplexes, there are 17 triplexes available in our MLS right now. They're affordable. They range from $140,000 all the way up to $475,000 depending on the area. Now our MLS, I don't know if people know this, our MLS does cover a really wide range. It covers all the way over to Twin Falls. It covers up into McCall. It covers over into Ontario. We have Ontario listings and then south to the border. We have a very large area, so 17 triplexes in that big of an area may not seem like a lot, but...

Dave Burnett:                    It's a choice.

Thom Dallman:                  It's a choice, exactly.

Dave Burnett:                    There is a choice there. I guess is I'm thinking that... There's no way you could really do it. I was mentally thinking, "Okay. If you rented those out for $1,200 a piece and had three of them." But there's no way of knowing what you'd rent it for in that area.

Thom Dallman:                  Yeah, because they're going to be... Each unit, if you kept it as the triplex, are going to be different sizes and stuff like that.

Dave Burnett:                    But it's not a bad investment. I mean, by the time you triple what your rent would be on it, that goes to your payment on it.

Thom Dallman:                  Exactly.

Dave Burnett:                    That's a good deal.

Thom Dallman:                  Unless you have the cash to go in and do the remodel.

Dave Burnett:                    Yeah, that is true. I'm assuming if it's an investment, it's a little bit different kind of loan.

Thom Dallman:                  Yup.

Dave Burnett:                    Ron at Flagstar Bank would have the information about what kind of loan to get for an investment like that.

Thom Dallman:                  Exactly. Yeah, this is not going to be able to go through with traditional financing just due to the fact that it's not completed. It's listed as a... I believe we're doing it as a cash only purchase. This one is going to need cash or some kind of rehabilitation loan. Sorry, the rehab loans that are out there. The acronym's kind of escaping mind.

Dave Burnett:                    Ron could give you all the information about what's available for that.

Thom Dallman:                  Yeah, Ron could give you their stuff. If you do purchase it, make sure you work with a realtor to make sure you're doing the remodel in the right way. There's a lot of mistakes that you can make.

Dave Burnett:                    I was going to say you were involved, when you first moved to the valley, in flipping homes so remodel is something that you got in your blood. You understand. What are some of the mistakes people make?

Thom Dallman:                  I would say... Oh, gosh. What's the first thing that comes to mind? First thing that comes to mind is not paying attention to landscaping. Landscaping is important when you're doing a remodel. The fact that it's the curb appeal. It's the first impression.

                                                The exterior of the house is what everybody sees when they pull up and stuff like that. Especially with investment properties, when you have renters, you can get more rent if the landscaping is nice. If you keep it up and maintain it, renters are going to want to pay a little bit more for a nicer environment.

Dave Burnett:                    If it's nicer, they will treat it nicer.

Thom Dallman:                  Exactly. I've seen people invest too much time, energy, and money into completing rearranging floor plans and taking out walls and stuff like that that weren't necessary to spend the money on. Really kind of that whole concept of respecting the bones of the house. Keeping the idea of the house and its original floor plans in mind when you're going through the rehab. You don't have to tear down walls if it's just not going to benefit you in the long run price-wise.

Dave Burnett:                    You have to look at it as a business decision. Not as, "That'd be nice to do that." There's no reason to do that.

Thom Dallman:                  The same thing with amenities like countertops and flooring. People will spend outrageous amounts of money for granite countertops. In a house that if it's a rental, you don't need granite countertops necessarily. So kind of keeping an eye on those kind of things.

Dave Burnett:                    I guess it's kind of an obvious statement. When it comes to remodeling and redoing this work, I know for me as a home owner, underestimating my time and my investment into it. It's like, "Oh, yeah, honey. It'd take me two days to do that." Two weeks later, I'm still working on it.

Thom Dallman:                  Realistic time frames, and not just yourself but contractors. Because there's contractors that will kind of underbid and then, "Oh, sorry. We went over budget." Or say, "I can get that done in a week."

Dave Burnett:                    Three weeks later.

Thom Dallman:                  Three weeks later, you're still, "Why are they still in my house?" Having realistic contractors. When you're talking to contractors, make sure that they're being realistic. Did you have three contractors telling you it's going to take three weeks and one saying he can get it done in a week? There might be something a little bit off with that one.

Dave Burnett:                    Yeah. Well, let's do this. If you're interested in doing this, Thom and the folks at Core Group Realty @ eXp always willing to counsel. You can sit down and say, "Here's the deal."

Thom Dallman:                  Do it all the time.

Dave Burnett:                    "Just shoot straight with me, Thom. What are we looking at here?" I know you'll do that to sit down and give a realistic viewpoint. If somebody wants to see this information, they can do it online?

Thom Dallman:                  Yeah, just go to CoreGroupRealty.com. You can see all kinds of information there. We have our featured listings page, so you can see this listing over there at 610 9th Avenue South. We do these radio shows. We put them on our blog sites. In the next week or two, you'll be able to see it on the Idaho Real Estate Buzz under our blog site and actually read through it and stuff like that.

Dave Burnett:                    Very good. 208-933-7777 that's the phone number for you to call or as Thom said, CoreGroupRealty.com the website if you want to go check it out. It is the Idaho Real Estate Buzz being brought to you by the folks at Flagstar Bank and Core Group Realty @ eXp. Find out why they say, "You get more with Core."




Segment 2


Dave Burnett:                    This is the Idaho Real Estate Buzz, he is Thom Dallman the co-owner, associate broker at Core Group Realty at EXP. CoreGroupRealty.com, the website, 208-933-7777, that's the phone number for you to call.

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    Every week we get a chance to talk to Ron with Flagstar Bank and find out a little bit of what's happening in the market place, and things have slowed down a little bit.

Ron Wieczorek:                We saw what a lot of us knew was unsustainable growth with how fast appreciation, appreciating nationwide and here in the Treasure Valley. Because some of the numbers we saw last year were double digit and, heavy double digit, not nine or ten, like 17 or 18 percent.

Thom Dallman:                  Insane.

Ron Wieczorek:                Insane.

Thom Dallman:                  Crazy increases month to month.

Ron Wieczorek:                And we always talk about at sometimes, at some point something's got to give, right? If prices are going up that fast and wages are going up at a fraction of that, who can afford a home after a certain point. So the rubber's meeting the road with a little bit of that right now. And it's adding urgency to that "how low can they go" conversation about the interest rates because we got real lucky in 2019.

Thom Dallman:                  Mm-hmm (affirmative).

Ron Wieczorek:                2018 when we were doing this show, we saw four increases by the fed on the overnight lending rate which led the mortgage rates to go up, and when they were going up, it became harder and harder to afford a home.

Thom Dallman:                  Exactly. Weren't we talking about at the beginning of 2019 that we kind of felt like the fed was going to keep raising rates this year and we thought this year was going to see an increase in rates, but then all of a sudden-

Ron Wieczorek:                Going into 2019, the sentiment with all the economist and experts were going to see three more increases in rates over 2019. So, and that was at a time when prices were going up for home prices, we talked about that, and rates were going up, so that was a bad combination, right? So now you're starting to carve out a lot of people that might not be able to afford homes and with already low inventory in the market, what that was meaning for people that bought and had really low mortgage rates, and the prices were going up and the rates were going up, they were locked into those rates. So they were like, even though my family's growing and I'm at a point where I need to upsize, I can't upsize right now because what it would, the equity I'd get for my other house to buy a new home at a higher interest rate, doesn't make sense for me.

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    So what I'm hearing in this is this really isn't bad news.

Ron Wieczorek:                Are you reading my notes? I'm trying to keep them close to my chest here but yeah, no I, you know theirs different sides of the fence on this one and I'm on that side of the fence that looks at this as being more sustainable. We're still increasing in prices which is good and we're increasing at a rate that is lower than the gains in employment.

                                                So, if your wages are going up at a higher rate than what you were, the houses are going up, that's a good thing for the consumer and especially with mortgage rates going down so and to kind of put a bow on what I was saying is, with the interest rates going down, it's made some of the, maybe not right now, but now is the time to get off the fence a little bit for those folks that were saying "Hey, it's time to sell and upgrade" because now it's the best of both worlds. The prices have slowed down a little bit, we've had a chance to take a breath, the interest rates are low enough where it makes sense for me to sell this house that I have a mid-three's rate on because I can get into another mid-three's rate and I can finally do what's best for my family and further to grow my wealth because that second tier home, as it appreciates, you know, $100,000 home appreciating at two percent, and a $300,000 home or $400,000 home appreciating at the same level, it doesn't take a math genius to know that you're getting more out of that $300,000 - $400,000 home.

Dave Burnett:                    So the only persons that this is really bad news for, those who own a home already, locked in, and are just enjoying the appreciation that the house is getting.

Ron Wieczorek:                Yeah, and I don't know if it is bad news for them because they're still seeing, they're still seeing the fruits of that.

Dave Burnett:                    It's not real money it's-

Ron Wieczorek:                Yeah, right.

Dave Burnett:                    ... It's all on paper.

Ron Wieczorek:                And I think for those folks, they're going to continue to, it's healthier for them because once real estate starts moving they'll gain more because we've seen it slow down even in the Treasure Valley because of the clog at the entry level home. Once that starts to loosen up a little bit, then I think that you're going to see those, everybody's more sustainable. It's better for the overall market. And I'm on that side of the fence that thinks it's better for the overall market to see that, because it is more sustainable in the long run. So with that being said, I think that those folks will start, maybe it's a slower burn, but they'll start seeing their equity rise even more after that.

Dave Burnett:                    So what I'm taking out of this is, Thom, is things are slowing down. It's not white-hot-

Thom Dallman:                  Yep.

Dave Burnett:                    ... but it's still really good.

Thom Dallman:                  It's still a really good market, yeah.

Dave Burnett:                    It was hot. It was white-hot.

Thom Dallman:                  We still have a lot of sales going on. Our sales still increase from month to month the last couple of months. Home prices have kind of steadied out, kind of dropped a little bit one month, go up a little bit the next month and stuff but, all in all, yeah, it's still a great time to sell, still a great time to buy.

Ron Wieczorek:                Yeah.

Thom Dallman:                  There's nothing really slowing us down.

Ron Wieczorek:                I think it's a better time to sell and buy because some of the sellers were holding off because they were like, it keeps going up, it keeps going up and-

Thom Dallman:                  Mm-hmm (affirmative),

Ron Wieczorek:                ... why stop? I can get more and more for the house, but now as it slows down, it's now forcing their hand to do what they want to do anyway.

Thom Dallman:                  Yeah, exactly.

Ron Wieczorek:                If that was the ultimate plan was to, I'm not talking about the person that's on the verge of retirement and maybe going somewhere else, I'm talking about the vast majority of what we see in our marketplaces, folks my age, a generation younger, which are millennials, and then Gen Z which is just starting to hit our market that's 18 and 23 year olds. So for all of us that are my generation, that's probably getting a second or third home, millennials, maybe their first, maybe their second home, Gen Z starting to float with the idea, I think it's better for all of those groups to see some of that inventory become loosened up and hopefully, and I knock on wood here, is that they start breaking ground on some more entry level homes because even though the profit is not there on entry level homes for the builders, and that's been the big "Why would I build a home at $250,000 when I can build a home at $600,000 and my build in margin is two to three times more.".

Dave Burnett:                    Is that what we consider and entry level home now, like $250,000?

Ron Wieczorek:                Yes.

Dave Burnett:                    -I was curious.

Thom Dallman:                  I just went on a listing appointment this week and they're in that $230 price range.

Dave Burnett:                    Mm-hmm (affirmative).

Thom Dallman:                  Yeah, I told them that's pretty much the entry level right now, you know that's a lot of, there's a whole lot of hope for some home buyers that are looking for that price range because they can afford it.

Dave Burnett:                    Because when we started doing this program, I think entry level was like around $170,000.

Thom Dallman:                  Oh yeah. Oh yeah.

Dave Burnett:                    We've been doing this show for a long time but we haven't been doing it that long.

Thom Dallman:                  Yeah.

Dave Burnett:                    So, that entry level home has really changed.

Ron Wieczorek:                Now it changed a lot since 2008, you know after 2008 all the way to 2012, you saw home buys go down, down, down. So if you're doing that 2011, 2012 and you're like, yeah the average home was $140,000 - $150,000, but that was lower than it should have been because the market took a huge hit, right? It was a crisis. So now it's probably closer, maybe somewhere in between where it should be, but well you see, you're not going to see, or you don't see a whole lot of right now of people starting in their careers buying their first home where there's just one wage earner. Because it's harder to do it that way.

Dave Burnett:                    So are we seeing, and I realize the time of year adjusts this too, are we a slow down in new building, or is it still going strong?

Thom Dallman:                  I'm still seeing it going strong. I've not seen anything indicating that it's slowing down at all for the new construction.

Ron Wieczorek:                No I think they are still building, I just think they need to, there needs to be refocus on what they're building-

Thom Dallman:                  Yeah, exactly.

Ron Wieczorek:                ... Rather than where. And again, if I'm a business owner or a builder, and I'm going to get 50 cents on the dollar or two dollars on the dollar, I know what I'm going to take, so I get that, but I think what we really see as far as, not a crisis but a problem, an inventory problem, is they're not breaking ground enough on entry level homes.

Thom Dallman:                  Yeah.

Ron Wieczorek:                And I also think that's going to save us from a crisis. And that's maybe another show, but as long as there's a strong demand in entry level homes, if something were to happen, recession gets talked about a lot, if that were to happen, if there's still that demand of entry level homes, it's not, the market is not going to crash.

Thom Dallman:                  Yeah.

Dave Burnett:                    Mm-hmm (affirmative).

Ron Wieczorek:                Because you still someone, if you can't afford your house and something happens to your job, Susie and Billy are next, right?

Dave Burnett:                    And instead of building half a million dollar homes, you go back down to building $300,000 homes.

Ron Wieczorek:                Right.

Thom Dallman:                  Um-hmm(affirmative)

Ron Wieczorek:                Whatever that looks like.

Thom Dallman:                  Whatever that is-

Ron Wieczorek:                It's a moving target.

Dave Burnett:                    I would like to say this and I always like saying this sometime in September, if you're looking to make a move and get into a home by Thanksgiving, or by Christmas, now is the time to act.

Thom Dallman:                  Now is the time to act, for sure.

Ron Wieczorek:                You know it's still warm enough and like we said with the prices going down, I can't pound in the interest rates as much as I want to because that's a huge factor. You know I've seen affordability go up $44,000 over the past year so in that same budget, you can afford $44,000 more just because of the interest rate-

Thom Dallman:                  Um-hmm (affirmative)

Ron Wieczorek:                ... in going down. So that's a huge factor that really gets understated, in my opinion of, when you go to buy a house, people get, you know you look at a $300,000 - $400,000 home and if that price is still $300,000 or $400,000 and that interest rate is a point lower, you're getting more house.

Dave Burnett:                    Um-hmm (affirmative)

Ron Wieczorek:                So that's like, a lot of people get sticker shock of what the price of the home is and they don't realize, you know my payment is $200 less.

Thom Dallman:                  Exactly.

Ron Wieczorek:                That's a big deal.

Dave Burnett:                    So you get more for less.

Ron Wieczorek:                Yeah, that's a good combination. I like to shop at that place.

Dave Burnett:                    Exactly. You can make a living at doing that. So again, we talk about this on a regular basis but if somebody is just getting started, getting pre-qualified, that is the whole key to getting in the game.

Ron Wieczorek:                Yeah, you'll always want to see where you stand, you know, even if you think you know, sometimes there's things that will pop up, we live in a crazy world where information is shared, where information is stolen, and you may think you're top tier credit and there might be something on there that you want to take a look at, or I can say, hey if we do this, this and this in the next couple of months and you're ready, or you're ready right away. You have to know you're ready before you go out there and get a Thom and go looking for houses and he says where's your pre-approval letter and they're going, right now?

Thom Dallman:                  Yeah, a what? A letter?

Ron Wieczorek:                I need that?

Dave Burnett:                    And if somebody wants to do that to, Ron to get a hold of you, maybe to pre-approve or find out more about where you feel the housing market and mortgage is going, how do they a hold of you?

Ron Wieczorek:                My cell phone is always on me, it's 208-869-9154.

Dave Burnett:                    It's the Idaho Real Estate Buzz Team brought to you by the folks at Flagstar Bank, equal opportunity lenders, and Core Group Realty at EXP. CoreGroupRealty.com, the website. 208-933-7777. Find out why they say "You get more with Core.".




Segment 3


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. We always get a chance to visit with Ron Wieczorek at Flagstar Bank, equal opportunity lenders, to talk a little bit about what's going on. We've talked about affordability in homes. Things have slowed down. Not a bad slow down, but a-

Ron Wieczorek:                Not a screeching halt, by no means, but just a gradual, 3% over this, 2% over this.

Dave Burnett:                    The stove is still hot, just not white hot.

Ron Wieczorek:                It's not white hot and there's some areas of the United States that are cold and those are the areas that need to be cold.

Dave Burnett:                    Yeah.

Ron Wieczorek:                And when I say that, that's the Seattles, the San Franciscos, the San Joses, because you're talking median home prices of 1.2, 1.3 million. Where do you stop?

Thom Dallman:                  Yeah. It's insane.

Dave Burnett:                    That's crazy.

Ron Wieczorek:                And I've talked in the past about those areas where you know you have a problem when your first responders and your teachers can't afford to live there. Right? It's great that you have all this commerce and this economy and the tech, but if your first responders can't live near where they respond to, that's an issue. So those places had to cool down and there's places that they have opportunity zones where they're cheaper and people are incented to invest to build up that real estate, but that's probably not where you want your first responders living anyway because those are usually work in progress, to be nice.

Dave Burnett:                    But things do change. I had somebody I knew who lived in Downey, California who lived there years and years back, just in the LA area, if you don't know. And Downey, California at that time was out in the country and they bought their home for like $23,000.

Ron Wieczorek:                Oh my gosh.

Dave Burnett:                    He wound up passing away and his kid sold it, but it was for like $4 million.

Ron Wieczorek:                Wow.

Thom Dallman:                  Oh, wow.

Dave Burnett:                    Yeah.

Thom Dallman:                  That's crazy.

Dave Burnett:                    He had all this land and had what he considered a little house out there in Downey, out on the cow trails.

Ron Wieczorek:                It's amazing how what used to be, and you drive around the Treasure Valley and Dave, you're a lot older than me, so you'd probably go ...

Thom Dallman:                  Uh oh. Ouch.

Ron Wieczorek:                ... you could probably drive around and see areas, this used to be a cow pasture, this used to be a cow pasture.

Dave Burnett:                    Which is true. I mean, Meridian at Eagle Road, at one time, those were farms out there. I remember that. And it wasn't that long ago.

Thom Dallman:                  Ron, I've heard stories from people about how, when they were building the mall, they were like, "What? You're building a mall out in the middle of nowhere? Why would you do that?"

Ron Wieczorek:                Exactly.

Thom Dallman:                  And I look at the mall and it's in the middle of everything.

Dave Burnett:                    I read a Compass report years ago that said that the center of the Treasure Valley would be right there where St. Luke's Hospital is in Meridian. And everyone went, "What?" And that's where it is. Even if you go on Highway 44 between Star and Middleton, North of the road, that's all subdivision back in there and it's crazy the growth that has taken place.

Ron Wieczorek:                It's like Field of Dreams. If you build it, they will come.

Thom Dallman:                  Yeah. They will come.

Dave Burnett:                    They will come. Out of the cow pasture they come.

Ron Wieczorek:                Yeah.

Dave Burnett:                    So it's not a bad thing that things are slowing down.

Ron Wieczorek:                Not a bad thing. And we got off topic a little bit.

Thom Dallman:                  Off tangent.

Ron Wieczorek:                Thanks for- us back in. Potential home buyers have seen prices rise significantly, but now that they've slowed down and the rates have gone down, it's improved affordability to a great degree and it's given the buyers a lot of extra buying power. So maybe your buyer that was on the fence or maybe even carved out of the market because they can no longer afford it, they've gotten $44,000 more on average of a budget because of the interest rate reduction, which means, if you were on the fence, now you're back into the ballgame. If you were a buyer, maybe you're a buyer for more, or maybe you just save more by buying the same house you were looking at. And if you were carved out of the market, you're back in it, baby.

                                                So that's one of the key factors of driving affordability and I just look at those numbers a lot. And the interest rate changes boosted home buying power by 35,000 while income increases added a further 8,600. That's where we get our 44,000. So there's two pieces of it. I harp on interest rates but it's not just interest rates, it's the economy is doing well and people are seeing more in their pocket and that's put $8,600 more, that affordability, back in their pocket.

                                                So compared to one year ago, we're seeing the housing buying power is the highest it's been since 1991. So when you said it's slowed down, but it's the time to buy, we mean it, it's the time to buy.

Thom Dallman:                  Yeah.

Ron Wieczorek:                The greatest since '91. I just wanted to finish that topic so I can go way off track and take us down another road because there's some interesting things I read on a daily basis and sometimes it pops up to me and one of them was homeowners are willing to dish out $125 more monthly for the power to choose their neighbor. So there was over a thousand renters and homeowners who were surveyed and homeowners are willing to cough up, like I said, $125 more for the ability to choose their neighbors. And renters, $225.

Thom Dallman:                  What?

Ron Wieczorek:                That's the number.

Thom Dallman:                  To choose-

Ron Wieczorek:                That's by rent.com and that probably makes sense because it's closer quarters usually, we're talking apartments, right?

Thom Dallman:                  Mm-hmm (affirmative). Most renters, yeah, live in apartments and duplexes, triplexes, all those kinds of stuff.

Dave Burnett:                    So this is just a question though, would you be willing to pay more? Because you can't choose your neighbors, really. I mean, how do you know ...

Thom Dallman:                  Yeah, how do you know ... I wonder how they factored that in as far as, how did they know who their neighbors truly are? But I would venture to guess that they're really talking more about neighborhoods there.

Ron Wieczorek:                Yes. Yeah.

Thom Dallman:                  People are willing to pay a little bit more to pick the specific neighborhood ...

Ron Wieczorek:                Rather than ...

Thom Dallman:                  ...and that neighborhood has that reputation of what kind of people are living there.

Dave Burnett:                    I just want to make sure the people who bought the house next to me didn't go, "Oh my gosh."

Ron Wieczorek:                Yeah, they're not calling the mortgage people when they come by ...

Thom Dallman:                  Yeah. That burned that family, oh my gosh.

Ron Wieczorek:                ... and say, "Hey, I'll pay you more if this guy moves in." But you're right, and that's a great point, Thom, because we decide or, collective we, decide to live based off, social preferences was one of the categories, proximity to work, familial relationships and other factors. So that's, in essence, the picking your neighbors is based off the area that you want to live in and what's going on or what's available in that area.

Dave Burnett:                    Now, I would assume, as a real estate agent though, Thom, there's times where you've driven up to a house, they look across the street and go, "Nope."

Thom Dallman:                  Yeah, I've had people do that to me.

Dave Burnett:                    "They've got a car on blocks in the front yard. I'm not moving to this neighborhood." Typically, that's not the case, but more areas than neighborhoods.

Ron Wieczorek:                Yeah. And they blend a little bit, neighborhoods to areas, but it all depends what you're into. And I think that's what's driving that number with the renters. It probably does really have to do with their neighbors, at two o'clock, blaring the music at 2:00 a.m. or having a dance party and I know when I was single, I probably had neighbors that really did not like me because in my early twenties, we were up pretty late random nights when people, we were still going to work, but we played both ends, burnt both ends.

Dave Burnett:                    But while some people might want to live near Bronco Stadium, other people would not want to live anywhere near there.

Ron Wieczorek:                Right. And it's amazing. Everyone has their own ...

Dave Burnett:                    Yeah.

Ron Wieczorek:                And you see this probably, Thom, a lot, is what appeals to you doesn't appeal to everybody. So that's where we have to keep our opinions to ourselves because it doesn't appeal to everybody, what we may think is ... We want to be near x and they're like, "Whoa, I don't want to be nowhere near that, I don't want any neighbors. I want to be on three acres alone and I have a shotgun waiting for people."

Dave Burnett:                    "Anyone that drives in here."

Ron Wieczorek:                Yeah.

Dave Burnett:                    So, was it $125 a month they were willing to pay?

Ron Wieczorek:                $125 more a month.

Thom Dallman:                  For buying and 225 for renting?

Ron Wieczorek:                225 for renting.

Dave Burnett:                    225 for renting, get where we want to go.

Ron Wieczorek:                Which sounds to me like whoever was taking this survey, if you're renting, you have $225 extra a month, then maybe you should be buying.

Thom Dallman:                  Maybe you should be buying, yeah, right?

Ron Wieczorek:                For sure.

Dave Burnett:                    That would be a good idea.

Thom Dallman:                  For sure.

Ron Wieczorek:                So that begs that question.

Thom Dallman:                  Invest that money. What a shame.

Ron Wieczorek:                Switching gears again, home buyers are priced out in car dependent areas as prices skyrocket. So what I'm saying, homes in walkable areas have increased only by 2.3% over the past year versus a 4.3 increase for car reliant areas over the past year. And when you think of walkable areas, walkable areas are near the Greenbelt, if you're on Boise or Downtown, where you can just walk or pick up a bike and as you move out, those prices have gone up more.

Dave Burnett:                    You would think it would be the reverse, though. There's such a push towards green lifestyles and getting rid of the car and moving more toward energy clean transportation. You'd think that'd go the other way.

Ron Wieczorek:                It is a very deceiving study, a reason it's deceiving, it's because it was so skewed over the past four years towards the walkable areas, that the walkable areas are now so far out of their price range that the demand is higher now in the car dependent areas, because the demand is higher and higher, those prices are going up at a faster rate because everyone's already priced out of the walkable areas. So it's a very deceiving study and it's good that you picked up on that earlier that I was trying to sneak one past you guys because yes, it is still, as far as the desirability, it's still very highly desired, especially in eco, green friendly places like Boise, to be in a walkable type area because a car-

Thom Dallman:                  Oh, yeah. Oh, yeah. Or even bikeable. I don't know if there's a difference between the walkable and bikeable, because I have a set of clients that they want to find someplace that's really super bikeable. They love biking everywhere, they want to bike to work so they're trying to find a central spot to be able to just hit their jobs, hit their fun places and stuff like that on their bikes.

Ron Wieczorek:                Yeah. And I think that's in that walkable area, what was walkable for you, I'd probably need a bike for it.

Thom Dallman:                  You might need a car of a golf cart.

Ron Wieczorek:                So you're in a car dependent area.

Thom Dallman:                  That would be me.

Ron Wieczorek:                And so it's not that people value walkable any less than they do the car dependent areas, it's just they've been outpriced of that area. But I thought that was an interesting study only because it's been an unforeseen circumstances of that trend being so much towards the walkable areas that they're so priced out and now they're moving out and those prices are going up as a result of the other prices going up too high. So this happened-

Dave Burnett:                    Closing out this segment, the one most interesting mode of transportation I saw, somebody bought one of the condos down on the Greenbelt next to the Boise River because he wanted to kayak to work.

Ron Wieczorek:                Kayak to work.

Thom Dallman:                  Wow, that's a new one.

Ron Wieczorek:                Yeah.

Dave Burnett:                    Yeah.

Ron Wieczorek:                I'm looking to my notes for the kayakability.

Thom Dallman:                  Kayakability.

Dave Burnett:                    And then when the river was too high to kayak, he'd ride his bike.

Ron Wieczorek:                Okay.

Dave Burnett:                    And so it worked out well, I mean, it was one of those walkable, kayak and bike to work things.

Thom Dallman:                  Kayak-

Ron Wieczorek:                I envy people that have that drive to do that because that's so not me, until I get my third cup of coffee, I can't do anything remotely athletic. Well, I can't do anything athletic anyway.

Dave Burnett:                    Not putting on a wet suit and not putting on a helmet and I'm not paddling to work. That's not going to happen, but this guy did it every day. So it worked out well. Ron, if somebody wants to get hold of you to find out more about maybe getting pre-qualified or finding about loans for homes, because now is the time to do it, how do they get hold of you?

Ron Wieczorek:                It is the time to do it. Homes are more affordable just by interest rate alone and economy. My cell phone's always on me. It's 208-869-9154.

Dave Burnett:                    All right, very good. Flagstar Bank, of course, one of the sponsors of this program, equal opportunity lender along with the folks at Core Group Realty @ EXP. Call today, 208-933-7777. Find out why they say you get more with Core.




Segment 4


Dave Burnett:                    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, associate broker at Core Group Realty @ EXP. CoreGroupRealty.com, the website. 208-933-7777, that is the phone number for you to call if you want information about Core and anything going on there.

Thom Dallman:                  Yeah. We have it all standing by, we have agents standing by to answer those questions. If for some reason, the agent doesn't know the question, we'll find it for you.

Dave Burnett:                    Get the answer that way.

Thom Dallman:                  Mm-hmm (affirmative).

Dave Burnett:                    So we've talked a little bit about triplexes, duplexes. Is that a good investment and what is happening in the world?

Thom Dallman:                  I think so. Well, we talk all the time about the idea of buying single family houses and turning them into rental properties, but we don't touch on the fact that there's opportunities as far as duplexes, triplexes, fourplexes are really popular right now to purchase. Investors have really started to pick up on that in the last couple of years and are investing more and more into those multi-unit properties. I think one of the going factors on that is the idea that if you have a single family house that you're renting and someone moves out, you have that month or two vacancy while you're trying to get it cleaned up and trying to find a new tenant and stuff like that. Whereas if you have a fourplex, you're still collecting rent on three other units while that one unit that they moved out, you're trying to find a tenant for. So I think the concept is that if you have the finances to be able to get into a triplex or a fourplex, your loss of money during vacancy goes down a little bit.

Dave Burnett:                    Let me ask you this question. You mentioned before that there were 17 multi-unit, family units available in the area.

Thom Dallman:                  Yeah. That was a stat that we gave about triplexes and currently, in our marketplace, residential income properties, multi-units, we have about 165 multi-units in our MLS that are active and available right now. And once again, that covers a big, broad range. Our MLS covers all the way from Twin Falls over to Ontario, from McCall down to the border South of us. And of those 165, 35 of them are actually new construction.

Dave Burnett:                    That's what I was going to ask. I think we all have seen and noticed all of the big apartment complexes going up, but as far as just duplexes, triplexes, a fourplex ...

Thom Dallman:                  There are some available out there in new construction opportunities. And I think that that's also another area that a lot of investors are looking at. It used to be, they just wanted to go into these older buildings, flip them ... rehab them, sorry, and then start renting them out. But they're realizing that with new construction, if they can get an house or a fourplex that's brand new construction, you avoid maintenance costs for numerous years.

Dave Burnett:                    Yeah.

Thom Dallman:                  So all you have to worry about is collecting that rent income and cleaning up the house once the tenants move out. So you have several years of non-maintenance that you get from the convenience of having a new construction. So they're picking up on that and so more and more investors are trying to find those fourplexes, especially, that are being built so that they can buy them, get people into them and enjoy the income coming in.

Dave Burnett:                    Every right there.

Thom Dallman:                  And even, I would suggest, if you're a first time home buyer and you can afford to look at a duplex, triplex, even a fourplex, think about the fact that that additional income that you're getting from the rental of that second unit, third unit, can help offset the payments to your mortgage and stuff.

Dave Burnett:                    Yeah.

Thom Dallman:                  It's a great opportunity for first-time home buyers as well, if they can get into them.

Dave Burnett:                    It's something I observed. I have no numbers to back it up, but on Eagle Road, there's a great big apartment complex and they started building this one. I'm sorry, it's actually on State Street and Eagle, and as they were building, I was thinking, "This thing is huge, they'll never fill it," but it is filling up as fast as they can finish the units off.

Thom Dallman:                  Right? It's amazing. It's amazing. Yeah, there's an article that I just read on cnbc.com that talks a little bit about this idea, and we can talk about millennials realizing that home purchasing is a great opportunity, but there is actually a lot of millennials who don't want to invest in a home just yet for various reasons. They want the flexibility of being able to move whenever they want. They want the ability to just figure out where they want to live. Maybe it's an income thing, maybe they don't quite have the money yet to purchase a house, don't want to settle down in a specific area. Some of them with growing kids and stuff like that want to experiment with different school districts to find that right school district for the kids. So there's a lot of people out there who are still, there's still a huge demand for rental properties.

Dave Burnett:                    Yeah.

Thom Dallman:                  There's a lot of our aging community that, they want to downsize, they don't want to deal with home maintenance anymore, so they're looking at apartments and duplexes and triplexes to move into, to rent, so that they don't have to deal with that in their retirement.

Dave Burnett:                    I guess another thing is, if you are investing in a multi-family unit, you have the choice of being the landlord yourself or hiring a property management company.

Thom Dallman:                  Oh, yeah. Oh, yeah.

Dave Burnett:                    So that way, you just get a check and don't have to worry about anything.

Thom Dallman:                  Exactly. You do have to pay a little bit, depending on the property management company, I think they collect between, I want to say 5% to 10% of the monthly rent for their work and stuff, but that is an option to go to as well. We have one of those property management companies on our vendor list if you do want to talk to them and find out what their options are, but yeah, that's another way to do it where you don't even have to deal with it. They just tell you, "Hey, there's some maintenance that needs to be done at this. Here's how much it's going to cost." They do all the work for you and stuff like that.

Dave Burnett:                    Yeah, my wife worked in a real estate office at one time in her life and she ran the property management side. That was her job, was to run the property management.

Thom Dallman:                  That's cool.

Dave Burnett:                    She didn't think so. It was a lot of work.

Thom Dallman:                  Oh, yeah.

Dave Burnett:                    It was a lot of work, they had like 80 different places. So that is something to look at, but as far as the Treasure Valley and growth goes, it's not going to slow down.

Thom Dallman:                  Yeah, we've got a lot of opportunities. Even nationally, I'm curious to see what 2019, but this report on CNBC talked about new construction in the multi-family units over the last couple of years. It reported that in 2017, there were 37,000 new construction multi-family units built in 2018 that grew to 43,000, so a huge increase nationwide in multi-units. And that was just new construction. I can't even imagine, just the resale numbers that added to that as well. So I'm curious what 2019 numbers will show nationwide when that comes out. But it goes to show new construction is so prevalent. We talk about that all the time right now, new construction is so prevalent because our inventory is so low everywhere that it's a huge part of our industry right now.

Dave Burnett:                    It is. I sit back and I know during 2010, during that slow down period, Texas was one of those states, it did not slow down. It just kept growing and building. And now we're finding Idaho in that position to where it appears, anyway, that even if there is a bit of a slowdown, that we will continue to grow and to build because of quality of life, affordability of life. So we continue to grow that way.

Thom Dallman:                  We continue to grow, everything's so affordable right here when you actually compare it to the larger metropolitan areas, all the people in California, in the big cities, are selling there and paying similar homes for half the price here. That's what we talk about, the retirees that are moving up here and other metropolitan areas. The ease of life here is so great. Boise is amazing for it's ability to be able to just jump up a mountain and go skiing in 45 minutes if you want to or in the summer time, jumping on the Greenbelt and hitting 25 miles or plus of Greenbelt and beautiful views of different areas of the city and stuff.

Dave Burnett:                    If you're a boater, you got Lucky Peak, you got C. J. Strike, you got Lake Lowell, you got bodies of water all around.

Thom Dallman:                  Exactly. Exactly. If you're like us, we like to do Lake Lowell in the early part of the summers because that's when the water's warmer there than up at Lucky Peak.

Dave Burnett:                    Yes.

Thom Dallman:                  And then Lucky Peak warms up, then we'd go up there.

Dave Burnett:                    That's right. Quality of life, very good here and not only does it do well for single homes but for multi-family homes, doing well as well.

Thom Dallman:                  Great opportunities there if you are in the market.

Dave Burnett:                    If somebody is in the marketplace, Thom, how do they get a hold of you to find out?

Thom Dallman:                  Yeah. Give us a call, 208-933-7777. You can send us an email at info@CoreGroupRealty.com or just go to our website, CoreGroupRealty.com there's a Contact Us page there where you can fill out your question and let us know what you're looking for and we can help you out.

Dave Burnett:                    No pressure, no obligation.

Thom Dallman:                  No. No.

Dave Burnett:                    It's a good deal. CoreGroupRealty.com is a website, Core Group Realty at eXp, the company. Call 208-933-7777. They are the sponsors of the Idaho Real Estate Buzz, along with the folks at Flagstar Bank. Find out why they say you get more at Core.


 Ron Wieczorek

Flagstar Bank

208 869-9154


Core Group at eXp Realty

208 639-7700



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