2022 Boise Idaho Real Estate Blog

Will the Boise Real Estate Market Cool Down in Winter?

Main Treasure Valley Life

Normally, home searches and home purchases all slow down as the weather cools off in winter. After breaking multiple records this year, the housing market across the country—especially the Boise real estate market—looks poised to stay hot as temperatures dip below freezing.

Since the initial lockdown period in March and April 2020 eased up, pent-up homebuyer demand was released as people flocked elsewhere in the wake of the corona virus. Boise, Idaho has been a hotspot for out-of-state-movers for many years now, and has seen a further spike in people looking to move here. Record-low interest rates and housing inventory have coupled with extreme buyer demand to make the Boise area one of the most comeptetive real estate markets in America. Due to these extreme seller's market conditions, home prices have also increased quickly. As the market conditions data shows, home prices before the lockdown period in Boise, Idaho averaged around $475,000. Currently, the average home price sits at around $525,000.

A spike in real estate activity in the spring and summer is very normal. And with that comes a slowdown in the winter due to the holidays, shorter daylight hours, and low temperatures. However, winter 2020 shows very little signs of a traditional cool down. There may be a slight dip in buyer demand due to the holidays, but even a downturn in real estate activity would still have higher volumes of buyer interest than any previous summer high.

What does this mean for buyers?

Boise is a hard seller's market. With homes for sale inventory down more than 70% in November 2020 compared to November 2019, buyers will still likely have to compete against multiple offers in a bidding war to get the winning bid. One consequence of rapidly higher prices and low inventory has led to many first-time homebuyers having a hard time getting into the market. Many home buyers are turning to new home construction as a way to buy a home without getting in a bidding war. However, it is hard to find land to build in new subdivisions, as developers are keeping their cards close to the vest until the subdivision is ready to develop. This is partly due to increased material costs in conjunction with buyer demand.

For home buyers, it really helps to have a local expert with tons of industry connections as your real estate agent.

What does this mean for sellers?

Even in the winter, sellers will see higher home sale prices, fewer days on market, and realize much higher equity on their homes. The average home value increase this year alone has created a bunch of free equity for homeowners. Current home owners are seeing this as a perfect time to sell their home for a lot more money than they bought it for and seek an upgrade. Part of why homes have been selling quickly despite the COVID-19 outbreak is the rise of virtual tours. These allow buyers to tour the home and see every detail without having to leave the comfort of their own home. We have had many clients buy a house after only seeing the virtual tour. Take a look around one of our former listings and see why this is the future of real estate listings.

If you sell your home with a Build Idaho agent, your listing will get a virtual tour, professional photography (including drone photos), and a video tour of the home hosted by your agent—all at no cost to you! Our goal is to make your real estate journey as easy and friendly as possible.

Posted by AndrewS at 12/8/2020 5:17:00 AM

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