Spring Home Sales in Boise 2014 Main Idaho Real Estate Insights

Last year about this time, new home sales started to heat up but will this year be more of the same?

There is every reason to think that new home sales will continue to trend upward. Yesterday we reviewed in-migration numbers for the last 12 years and 2014 should see even more people moving to town.

Year Ada Canyon Total
'02 9,157 3,184 12,341
'03 9,392 3,354 12,746
'04 10,929 3,820 14,779
'05 12,900 4,757 17,657
'06 13,373 4,961 18,334
'07 11,997 4,380 16,377
'08 10,266 3,927 14,193
'09 8,606 3,450 12,056
'10 9,405 3,680 13,085
'11 9,320 3,285 12,605
'12 10,435 3,722 14,157
'13 11,276 4,442 15,718

source: Idaho Transportation Department

Developers are moving dirt which is a welcome activity. Last year, just in Ada County builders used about 2,500 building lots. This year there will be demand for more so we really do need more available homesites.

One of the discussions people in the real estate industry is how the market went crazy on 2005. This is very true. The next point is normally about how stupid things got. Our question is always, what would home values have done if we did not try to meet demand? Analysts talk about how there were investors buying homes that did not acually have a person to live in them. But what if builders and developers did not try to meet the number of requests for lots and new homes? Home Values would have sky rocketed even further.

Today, we have not seen investors buying new homes but there is plenty of hype and demand. At the peak of the market there were almost a thousand builders and today there are probably at least 260 companies looking for home buyers and lots. That is a lot of people courting developers so you can understand why lot prices have been trending upward for at least 2 years now. Of course prior to that, if one was capable, you could buy a homesite below what it cost to turn it into a lot.

Trey Langford

Posted by tlangford at 3/19/2014 6:18:00 PM
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