Sun Valley Round Up
It was a busy start to the new year for me, My daughter had a 4 day race on Baldy last weekend and my son returned to college yesterday after a 5 week break at home.
Real Estate in Sun Valley saw an uptick over the Holiday’s; especially within our luxury market. Between December 15, 2022 and January 15, 2023, FIFTEEN properties over $3M pended sale. Given our low inventory and the grim national statistics on real estate, this activity was a bit surprising.
The building of single family homes in Hailey has been full throttle the past few years and multiple spec homes are coming to market soon. Most are priced between $1-$1.5M and it will be interesting to see how demand and pricing plays out with them in the next few months.
Sun Valley Events
Did you know the Sun Valley Culinary Institute has a fun event calendar? Join experts for sushi night, gourmet game night and Rico’s pizza. https://sunvalleyculinary.org/upcoming-classes
What is a Mortgage Buy Down?
The real estate market in Hailey, Ketchum and Sun Valley, Idaho is shifting and Sellers should consider ways to make their listings more attractive. Staging was pushed aside the past few years during our sellers market. Sellers should now consider staging their homes to sell and offering Buyer incentives to position their properties to sell for top dollar.
I recently discussed Buydown’s with Lindsay Zondag a local mortgage broker regarding Buydowns:
If interest rates seem daunting, there are so many options to decrease a potential monthly mortgage payment. One of those options is a temporary rate buy down.
Temporary rates downs aren’t new, but they’re very popular currently. Essentially, if you purchase a home and your interest rate is 6% on a 30 year mortgage, a two year temporary buy down means the first year of the loan, your rate is 4%. Year two is 5%, and year three- 30 will be 7%. The idea is that you’ll have either refinanced by year three or rates will be higher, in which case you’re still sitting pretty at 7%.
The caveats are as follows; the seller MUST pay for this via a seller credit. Your lender will be able to give you an exact number, but a rough estimate of the above scenario on a $400,000 loan would be $8,900. One option to sweeten the pot for a seller is to offer $8,900 more. Instead of offering $500,000 for a home, a buyer can offer $508,900 and request the seller participate in the buy down.
Second, a buyer must qualify for the loan based on the higher interest rate.
Third, this is available for most kinds of loans, including jumbos and second homes.
There are several different lengths for a buy down; you can do one, two, or three years. A good lender will be able to explain to you the costs and savings associated with any of those options.Lindsay Zondag, Mortgage Broker, 208-720-3541