September 22, 2022

West + Main Homes

Colorado, Colorado Springs, Mountains, National, Oklahoma, Oregon

These Are the 10 Cheapest States to Buy a House in 2022, According to a New Report

September 22, 2022

West + Main Homes

Colorado, Colorado Springs, Mountains, National, Oklahoma, Oregon

The housing market varies from state to state, and between prioritizing location, calculating taxes, and paying utilities, it can be difficult to discern which cities truly have the most affordable homes.

Still, people try.

Mortgage lender site Homebuyer.com recently published a new report on the 10 cheapest states to buy a home by tallying median home prices, household income, and estimated monthly mortgage payments. By assessing the median home price and average income, the homebuying site was able to calculate the percentage of income paid to the mortgage.

Here are the cheapest states to buy a home, according to their research:

1. Iowa

Median home price: $147,800
Median household income: $79,500
Estimated monthly mortgage payment: $702.22
Percentage of income to mortgage payment: 10.60%.

2. Indiana

Median home price: $141,700
Median household income: $73,300
Estimated monthly mortgage payment: $673.23
Percentage of income to mortgage payment: 11.02%

3. Ohio

Median home price: $145,700
Median household income: $75,300
Estimated monthly mortgage payment: $692.24
Percentage of income to mortgage payment: 11.03%

4. Nebraska

Median home price: $155,800
Median household income: $79,400
Estimated monthly mortgage payment: $740.22
Percentage of income to mortgage payment: 11.19%

5. Kansas

Median home price: $151,900
Median household income: $77,400
Estimated monthly mortgage payment: $721.70
Percentage of income to mortgage payment: 11.19%

6. Mississippi

Median home price: $119,000
Median household income: $60,000
Estimated monthly mortgage payment: $565.38
Percentage of income to mortgage payment: 11.31%

7. West Virginia

Median home price: $119,600
Median household income: $60,300
Estimated monthly mortgage payment: $568.23
Percentage of income to mortgage payment: 11.31%

8. Oklahoma

Median home price: $136,800
Median household income: $67,000
Estimated monthly mortgage payment: $649.95
Percentage of income to mortgage payment: 11.64%

9. Michigan

Median home price: $154,900
Median household income: $75,300
Estimated monthly mortgage payment: $735.95
Percentage of income to mortgage payment: 11.73%

10. Arkansas

Median home price: $127,800=
Median household income: $60,700
Estimated monthly mortgage payment: $607.19
Percentage of income to mortgage payment: 12%

Keep reading.

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September 22, 2022

West + Main Homes

Colorado, Colorado Springs, Mountains, National, Oklahoma, Oregon

Why Idaho’s Home Values Are Increasing More Than Any State in the Country

September 22, 2022

West + Main Homes

Colorado, Colorado Springs, Mountains, National, Oklahoma, Oregon

The value of a typical home in Idaho more than doubled in the past five years—a feat no other state can claim

With low interest rates and a life-altering pandemic that found many trading in their commute for remote work, it’s no secret that the real estate market in 2022 looks a whole lot different than it did five years ago. Those circumstances led many would-be homeowners to broaden their search, looking outside of the cities and suburbs they’d normally consider. And while it’s been apparent for at least a year that these shifts stood to benefit sellers in more rural states, the state to actually see the biggest growth in real estate prices since 2017 may not be the first one that comes to mind.

According to data from Zillow’s Home Value Index, Idaho saw the most significant change in typical home value over the past five years. Based on the real estate platform’s algorithmic “Zestimate” of home values, which uses a wide array of data points beyond sales prices to more comprehensively assess a given market, the value of a typical home in the Gem State jumped from $222,122 in July 2017 to $472,272 in July 2022.

That’s an astonishing increase of just over $250k, which translates to a growth of 112.6%. Idaho’s growth far exceeded not just the rest of the country, at a time when every state saw gains of at least 34%, but even its closest competitors: Second-place Arizona and third-place Utah saw five-year changes of 95.9 and 91.4%, respectively. While Utah’s pure dollar increase of $273,608 outpaced Idaho, it still found a place in the top five alongside Hawaii, California, and Washington, the three most expensive states (excluding Washington, D.C.) in terms of typical home value.

If these Zestimate increases can be considered a proxy for the value of living in a given place, metro-level data suggests that new (and existing) Idahoans enjoy the balance of a relatively urban area within an otherwise largely rural state. Showcasing a 117.8% growth in typical home value from 2017 to 2022, Boise was the only area to exceed Idaho’s state-level increase of 112.6%, with home values rising $276,676 over five years to a price of $511,618 by this July.

Those who relocated to Boise from out of state got good bang for their buck as well: Zillow further notes that these movers typically gained 68 square feet at a price that was about $145,000 less than the value of their prior home. That’s enough extra space for a cozy but viable home office, and a tidy profit with which to redesign or renovate one’s entire space as needed.

Other Idaho areas that gained ground showcased connections to the outdoors. Idaho Falls, Twin Falls, and Pocatello all saw prices increase by more than 100% over five years, with each situated a short distance from the Snake River. Coeur D’Alene, where the Spokane River flows into the town’s eponymous lake, saw property values rise by 109.3%. Hailey, which offers access to Sun Valley at a slightly more affordable rate than the ski town itself, saw comparatively modest but still significant growth of 87.5%. By way of out-of-state comparison, Summit Park, tucked between Salt Lake City and Sundance host Park City, saw prices increase by 108.6% to a typical value of just under $1.47 million.

Between attractive locations, extra space, and the fact that ninth-place Idaho’s typical 2022 home value is closer to that of 15th-place New Hampshire ($436,623) than eighth-place Oregon ($524,718), you have the recipe for real estate demand. “States where home values grew the most over the past five years tend to offer relative affordability, as well as a lifestyle that many are attracted to,” says Zillow senior economist Nicole Bachaud. “Markets that offer year-round outdoor living and easy access to outdoor amenities have been the most in-demand.”

Between a retreat from historically low interest rates (a move that also speaks to the realities of inflationary concerns) and a gradual return to the office, the moment to drop everything and save money by moving to a place like Idaho may be on its way out. Even still, the data goes to show that homeowners might still be able to get more for less, if they’re willing to look for hidden gems.

Next Week is The Best Week to Buy a Home

September 22, 2022

West + Main Homes

Colorado, Colorado Springs, National, Mountains, Oklahoma, Oregon

More than 6% of homes may have reduced prices during the week of September 25

It is general knowledge that spring time is home selling season, but the best time to buy a house can change from year to year. According to a report from Realtor.com published Wednesday, in 2022, the best week to buy a house is from September 25 to October 1.

Many in the industry view fall as “off season” for the housing market, which offers opportunistic buyers many favorable factors including more listing, less competition, and lower prices.

According to Realtor.com, those who buy during this week can expect more than 6% of homes with reduced prices, savings of more than $20,000 on average, approximately 46% more homes to choose from as compared to the average week to date, extra time to make buying decision with homes expected to stay on the market 15 days longer than summer’s peak, and less competition as as demand during the best week to buy is historically 26.9% lower than the yearly peak week and 8.5% lower than the average week.

As many prospective homebuyers have faced a multitude of challenges over the past year, from intense competition to limited inventory, as well as rising mortgage rates and record high home prices, they may be looking for any advantage they can get.

“If you’re flexible on your timing and can budget for higher rates, early fall can be a great time to secure a home, with a number of factors aligning to make it the best time of the year both in terms of price and competition,” Danielle Hale, the chief economist at Realtor.com, said in a statement. “This is especially true for first-time buyers and others who are not trying to sell a home at the same time as their purchase.”

On the other end of the homeownership lifecycle, a Thursday in late April is the best time to list a home, as home seller can expect to sell their property for 2.8% more than other times of the year.

Learn more on Real Trends.

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September 22, 2022

West + Main Homes

Oregon

Oregon Rents Could Be on the Rise

September 22, 2022

West + Main Homes

Oregon

Rents could rise as much as 14.6% for Oregonians renting a property that’s over 15 years old in 2023.

The average rent in Bend is $1,836, according to RentCafe, a data company with access to pricing on all Bend apartments 50 units or larger — so raising the average by the maximum allowable extent would bring the cost to over $2,100.

“The second I heard about the new increase I knew that as soon as they can in July, they will be raising it as much as they can because they have every single year,” said a Bend-based tenant who asked to remain anonymous for fear of retaliation from their landlord.

The tenant is currently paying $950 a month for their apartment, and comes with its own set of problems. Their carpet is 20 years old and so threadbare tack strips are poking through it. They have no washer, dryer, dishwasher or garbage disposal and their baseboard heater is malfunctioning.

“My next-door neighbor has the same apartment as me, and they moved in at $1495,” they said.

They said they budget conservatively and that they’re already exploring how they can tighten up their budget. They’re expecting to cut off the internet, leaving only cell phones, electric bills and car insurance as their only monthly expenses.

“I’m a full-time college student and my son is a high school student so we’ll be going to coffee shops to do our homework,” they said.

Oregon’s rent control laws passed in 2019’s legislative session and are intended to stop landlords from effectively evicting tenants through large rent increases, as well as stabilizing rental markets. The law allows 15+ year-old rentals to raise rents by 7% plus the Consumer Price Index for the West region — which measures average change of prices over time for consumer goods and services. Oregon’s the first state to enact rent control laws, but some cities have capped rent at much lower rates. In San Francisco, landlords’ allowable rent increases typically hover between 1-2%.

“Decades of economic and academic research show that really stringent rent controls, which this is not, but really stringent rent controls harm new construction. If a builder or developer cannot get a return on their investment, if the rents can only go up by 1% or 2% a year, they don’t get that financial return, and then they don’t build at all,” said Josh Lehner, an economist for the Oregon Office of Economic Analysis.

The 14.4% hike is the steepest since the program’s inception three years ago, thanks to the fastest inflation observed in 40 years. Over the past several decades inflation was generally around 2-3%. Lehner said signs are pointing to less-rapid inflation in the coming year. Inflation stemmed largely from the increases in energy prices that are now decreasing, and supply chain issues that’re also starting to ease up.

The maximum allowable rent increases aren’t taken advantage of by every landlord and property management company. Bend’s year-over-year increase in rental costs was about 6% with a max increase of 9.9%.

“Broadly speaking, housing costs go up along with incomes, if not a little bit faster than that. So if we see income growth 5-6% a year, broadly speaking, housing costs go up 5- 6% a year. Of course, every year can be a little bit different than that, but that tends to be the big-picture trend,” Lehner said.

Get more info on The Source.

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September 21, 2022

West + Main Homes

Listings, Oregon

Just Listed: Suntree Village Home with Cute Covered Back Porch

September 21, 2022

West + Main Homes

Listings, Oregon

Come see this comfortable home in 55+ Suntree Village.

Situated on large lot, quiet location towards the back of the park. Spacious floor plan, 2 bedrooms, 2 baths, great storage space and large covered back patio overlooking private backyard. Vaulted ceilings, ceiling fans and crown molding. Super kitchen with breakfast bar, lots of cupboards, drawers, pantry and counter space. All ‘newer’ appliances included + washer/dryer. Large and flexible living area with built-in hutch. Oversized primary bedroom features: extended closet, attached bathroom with garden tub, stall shower, double vanities and plenty of cabinets, drawers and storage. Enclosed laundry room with counter space, utility sink and door to back patio. BONUS: 2-car covered carport with door opening into amazing storage space AND a shop/hobby room with door to back patio. Seller credit towards new carpet/flooring. Available for showings - Look past the Estate Sale preparation in progress (mid-Oct)

Listed by Val Maxwell for West + Main Homes. Please contact Val for current pricing + availability.