Boise, Idaho is having its time in the spotlight at the moment. Everybody knows Boise is an awesome place to live and are moving here in droves for three main reasons: Leaving crowded urban areas (especially from California); Cheaper housing prices (relatively); Historically low mortgage rates; Easy access to the great outdoors. All of this has been happening for decades now, but the COVID-19 outbreak has shifted it into overdrive.
Since the lockdowns in mid-March, prices have risen as buyer demand increases and inventory decreases. In August 2020, inventory was down 64.5% compared to August 2019. This has led to price increases and a very strong seller’s market. According to Realtor.com, the median home price in Ada County is $415,000 and the median home price in Canyon County is $314,000. In addition, the National Association of Realtors reports that 68% of homes nationally were on the market for less than an month, with the national average being 22 days from listing to pending. In Idaho, homes are listed for only 9 days on average, with many of them only listed for 3-5 days before going pending.
So what does this mean for buyers?
Be prepared to write an offer as soon as you see a property that suits your needs. If you hesitate, it will disappear. More importantly, be prepared for a bidding war. Homes across all price ranges—from starter homes to million-dollar luxury homes—are receiving multiple offers. That being said, thanks to historically low interest rates, buyer’s buying power has also increased. Nationally, home buyers have an extra $32,000 in purchasing power today. That’s an almost-unheard-of 10% more than 2019!
Even new construction homes and building lots are being bought as soon as they are put on the market. Keep in mind that building costs are increasing as well due to COVID-19 supply chain restrictions coupled with incredibly high national demand.
So what does this mean for sellers?
Sellers will see a lot of interest in their home, and it will sell quickly for over the asking price. Homes values have appreciated far above the national average very quickly. Sellers in the Boise area are sitting on large sums of cash from their sales and must act fast to buy a new home with the limited inventory.
Whether you are a buyer or a seller in the Boise, Idaho real estate market, time is of the essence. Call a Build Idaho real estate agent today at 208.219.7683 to get started!
To learn everythign you need to know about Boise and the other cities in the Treasure Valley, download Build Idaho’s free Relocation Magazine and Top Communities guides.