2022 Boise Idaho Real Estate Blog

Four Changes That Are Driving New Homes in Boise, Idaho

Main Idaho Real Estate Insights

Real estate is a dynamic, wide-ranging industry—investing, development, new construction, multi-family, residential single family, apartments, and other niches. It is always evolving and there are two spectrums: buyers and sellers.

We have all seen the change that has happened over the last 14 months. You have probably read several articles about Boise, Idaho and the local real estate market. One of your relatives, who is a real estate agent, has also probably shared their perspective.

Four trends in new homes in Boise's hot real estate market.

  1. The national builders are now in Boise! They are buying big pieces of land and are on their way to having their first homes for sale. We have had several regional builders in the area over the last 8 years. Now the big players, who have deep pockets to invest in land and build homes, will soon be selling their homes here.
  2. The market is hot and builders are streamlining the construction process and their business, which means eliminating the opportunity for clients to make their own selections for amenities, finishes, and upgrades. It is happening now and builders are moving their business to be spec-home based as opposed to semi-custom. This means the builder will be making all the choices for you. The good news is that Boise has not had 'row homes' so far. As land becomes more expensive, lots will shrink and builders will condense the process even more.
  3. The builders are serious. Are you? The commitment level is fast and serious. By the 3rd quarter of 2020, waiting lists were as long as a year. Builders see people lining up to buy homes that don't exist yet. They need to know that clients buying homes are serious. A year ago, down payments were up to several thousand dollars. Now it costs tens of thousands of dollars with short contingency periods to back out. Some builders are requiring earnest money as part of the down payment on the lot and/or the house as a measure of how serious the buyer is.
  4. Builders are adding in a clause to account for the increase in building costs. Many builders went under contract for semi-custom and custom homes in 2020 with a firm price. This has been standard practice for builders, but building costs and home values quickly outpaced contracts and many homes were sold at a loss according to several local builders we have talked to. Now, builders are taking precautions to ensure that will not happen again. Homebuyers are challenged to go under contract with a clause that states that the price may go up tens of thousands of dollars, which the buyers will be on the hook for.

Trey Langford

Posted by tlangford at 5/17/2021 2:37:00 AM

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