Property In Meridian Idaho Is Appreciating!

Good news for those who own property in Meridian Idaho!

The recent change in classification of the Treasure Valley by Fannie Mae and Freddie Mac will have a huge effect on the real estate market here in Meridian. There are a few other changes that will also have a positive effect, but first the change in classification.

Freddie and Fanny both recently took Boise off of the "depreciating" market category which will have some very significant impacts on the types of financing available to Boise area buyers.

The most significant of these buyer impacts is that 100% financing will return due to the fact that buyers can now get mortgage insurance again for more than 90% purchases. Prior to this change any home buyer who was planning on using, or needing to us 100% financing they couldn’t get mortgage insurance and consequently could not find a lender to lend them any money. Who would, can’t blame them.

Since people will now be able to get help with their down payments and even purchase without any equity or money down from themselves, buyers will start to by the REO’s and other good deals out there now, especially around Meridian.

Meridian has been the darling of the local real estate market due to the newness of the majority of the construction in the area, good schools. lower crime rates and good public service districts. With Meridian home values being so low many buyers will not miss their chance to snap up a great value so expect much of the slow moving inventory to start flying off the shelves again.

Since any property in Meridian Idaho will benefit from this change many Meridian homeowners and businesses will start to have access to fund for refinance too. The advantages of that is obvious, but still deserve repeating. Many homeowners who were struggling to find loan modifications to make retaining their property in Meridian Idaho easier, can now use a refinance as their primary or back up financing option.

This effect this may have on the Meridian real estate market will be that inventory may be stalled a bit by homeowners who have started to see the light at the end of the tunnel.

Another factor that will be effecting the property in Meridian Idaho is that banks have been working on passing, and are very near to accomplishing it, a piece of legislation that will allow them to "sell" their REO properties to holding companies under their own corporate umbrella.

What this means is that the REO inventory that was previously flooding the market will now be slowly releases as the market can absorb it. It also means that banks will be able to recover some money from the REO property as they can rent the REO property out until they are putting it on the market. This actually has a side benefit for local residents in that the renter of the REO properties will receive a discounted rent rate as well.

This may cause a short term decline in rent rates due to the bank owned competition being more affordable than rentals owned by investors or private parties. Given it’s initial mission and intent the law will overall buoy the real estate market by limiting supply and causing a temporary "kink in the hose" so to speak.

Click on this link to learn more about property in Meridian Idaho!

 

 

Check out some of our other articles;

• Carefully Picking Out Your Builder