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How many Boise MSA prospective home buyers are priced out of the market for every thousand dollar incrementall increase? Main Idaho Real Estate Insights
Idaho Real Estate Listing insights.

The last time I heard this number was aproximately 2007 and at that time it was determined that for every $1,000 the price of a home went up, 293 people could not  afford a home in the Boise MSA. So for example, if you were looking at a pool of people that could afford a $100k, there would be 29,300 fewer people in the pool by the time you got to $200k. The most current study by the NAHB show that that number has changed to 538 people.

 

  Mortgage House Mortgage and Income That Can
  Area Rate Price Payment Insurance Needed Afford House
Boise City-Nampa, ID MSA 5.00% $214,990 $1,093 $172 $54,186 107,374
Boise City-Nampa, ID MSA 5.00% $215,990 $1,098 $173 $54,439 106,836
  Difference   $1,000 $5 $1 $252 -538

 

Boise Home Affordability Chart

 
Posted by tlangford at 3/16/2009 7:31:00 PM
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Comments (1)
Re:How many Boise MSA prospective home buyers are priced out of the market for every thousand dollar incrementall increase?
I really dislike these types of statistics and can't believe some of the lenders on this site haven't objected yet. There are so many different types of loans that it is impossible to adequately build a table to say what income will be required or what the payment will be. For example, what about the down payment, the property taxes, the Mortgage Insurance Premiums or Private Mortgage Insurance?

What about grants for the down payment?

What about debt to income ratios?

What about circuit breaker exemptions for tax relief for low to moderate income familes?

What about programs like RECD that base your payment on you income limits and family size so maybe even a family making only $1,000 a month can buy this home in Kuna or Star?

What about Boise City's Affordable Housing program?

With house prices lower than they have been in the last three years and mortgage rates at near historic lows, the NAHB stated on February 19, 2009 - Nationwide housing affordability surged at year-end 2008 to its highest level in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). http://www.nahb.org/news_details.aspx?sectionID=135&newsID=8665

I guess I am an optimist in that I look at this as with the $1,000 decrease 538 more people can afford the home!

Jim Paulson, CRS, GRI
Owner/Broker - Progressive Realty Corporation
www.IdahoMLStours.com

Posted by on 3/22/2009 8:43 PM

 

Michelle Penick, Boise Idaho Real Estate Agent

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