What does the Boise real estate market look like this year? Most experts are looking forward to a more balanced local market.

Here is a quick recap of November 2018 by the numbers compared to November 2017:

Overall Boise area home prices jumped more than 17% compared to November 2017. Total inventory of homes for sale increased marginally while the total number of homes sold decreased marginally. Pending home sales was down 12.5%. These statistics are important because they identify how strong the market is and where we are going.  With inventory of homes for sale remaining low and demand still strong, expect to see prices to continue to grow and affordability still threatened.

New homes sales increased 17%. New construction has always played a vital role in the local economy and there are several new developments coming in 2019 including Eagle Lakes, Stillwater and Bald Eagle Point. It will be interesting to see if builders and developers are able to meet demand? Many are skeptical and not looking to have as much inventory for home buyers.

Mortgage rates have risen from 3.92% to 4.87%, an eight-year high. This may sound alarming to most because they do not realize this is still historically a fantastic mortgage rate!

Local Housing Prices

Home values in the Boise area have been increasing at an alarming rate, outpacing the national average since 2011. Boise has become a place that many are looking to move to. What Boise has to offer as a place to call home is very appealing and what many are looking for. Many are expecting the market to normalize but with the number of people looking to escape the nearby metropolitan area of Los Angeles, San Diego, Portland and Seattle, it is hard to tell what 2019 will bring.

On a personal note. My family visited Salt Lake City, about 5 hours away, during the holidays and realized how spoiled we are with the lifestyle we have in Boise. Comparing traffic, people density and outdoor opportunities within 15 minutes make us appreciate even more where we live. These are great reminders of why we love living in Boise.  Boise has made a slew of Top Ten Lists for years which is another reason we do not see in-migration slowing down.  Boise has a reputation as a place where people can escape unaffordable housing, high taxes and a diminishing quality of life with no signs of that reputation changing anytime soon.

Back to the Boise Real Estate Market. The combined effect of higher home prices and recent increasing mortgage rates pushed Boise metro home affordability to a ten year low in 2018. Unfortunately; more expensive homes and higher interest rates equate to people being able to afford less house. I often hear crazy real estate stories from California and I hope we never expereince that.

Rates impact monthly payments which in turn affect purchasing power. A house that would have cost you $220,000 five years ago will cost $323,000 today. At the same time, the mortgage payment went from $1,079 to $1,530.

Competition for homes is fierce.

This spring, many real estate agents were helping clients write multiple offers to find a home they could call theirs. The Build Idaho Team has not experienced the bidding wars recently we experienced earlier this year. We will see if the In-Migration from out of state buyers continues this spring.

Are homes taking longer to sell?

We hear the Boise Market is slowing down, keeping in mid that it is winter which is normally a slower time for real estate. In November 2018 compared to 2017, homes sold 14% faster which equated to 5 days faster, 33 days compared to 38. This is another reminder that the Boise Real Estate Market does not experience national economics the same way as the rest of the country does.  Economists antipate home prices and financing costs will continue to rise, albeit at a slower pace.

One interesting median home values statitic: If you purchased a home in 2011, your home may have appreciated over $160,000! What's Your Home Worth?

Will it continue to be a Seller's Market?

Lots of discussions and hype revolve around this subject. We are noticing a lot more offers below asking price but again it is winter. Sellers hear the stories of multiple offes and thousands of dollars over asking price and expect to have the same results. Realtors continue to see people who not only expect that but want to sell their home for leading prices in the marketplace. Unfortunately, buyers are saavy and have lots of resources to evaluate prices. Statistically it remains true that sellers who price above market value will end up selling for less. Developers are also tring to test the market with higher prices and as hot as new construction is they learn that buyers do their homework. Pricing high and waiting for the market to catch has never worked.

2019 Boise real Estate Market

Many expect to see a more balanced market but Out of State Buyers are arriving at a pace of 101 per day according to a recent study. It is unlikely that we will see a normal market any time soon. Normal in real estate would mean 6 months of inventory, currently it is below 2 months. Normal also mean more like 3 to 6% appreciation. Even a shift in the economy normally takes 6 months to show up in Boise.