2022 Boise Idaho Real Estate Blog

Forget Home Prices ? Focus on Demand

Main Boise Housing and Real Estate News

Home sales have a huge impact on a local economy. The fact that Boise has had 4 straight years of improving home sales is paying great dividends to this metro area. I stress not to measure the health of the real estate market just solely on home prices, but also keep your eye on demand.

If you are thinking the Boise Real Estate market has finally turned a corner, you may be behind the times. Home sales are the true driver of economic health, not home prices. Home prices can and will affect home sales, but no matter what is driving the demand, when a home is sold it financially stimulates mortgage companies, realtors, title companies, contractors, builders, home services companies, etc., and therefore it puts money back into the local economy.

The Boise Idaho housing market hit its home sales bottom in 2008. It was 2008 that was the most painful for many of these service industries that feed off the real estate market. (See the chart below.) You can see steady growth of the Boise real estate market since 2008.  2012 actually had quite a few home sales. In fact, I would argue that home sales are already at healthy levels. So as a Boise real estate agent I am not anticipating or expecting home sales to increase in 2013, they don’t need to for this Boise market to remain healthy.

However, if the Boise Housing market has the same level of home sales in 2013 as we did in 2012, the Boise economy will feel and benefit much more from it, because even though home sales may stay the same, fewer of the home sales will be bank owned sales, and a far greater number will be regular home sellers like you and me (equity sales). Higher home prices in the valley are allowing more sellers to sell their Boise homes and luckily, since Boise is such a cool place to live, we keep getting a steady flow of buyers moving into the area. Population growth to the area will help keep the demand for housing strong, even if the economy is not yet firing on all cylinders.

Again, home sales have a huge impact on a local economy. The fact that Boise has had 4 straight years of improving home sales is paying great dividends to this metro area. I stress not to measure the health of the real estate market just solely on home prices, but also keep your eye on demand.

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Posted by MikeT at 1/11/2013 9:03:00 PM

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