2022 Boise Idaho Real Estate Blog

Homes are too expensive, I am going to wait for the market to shift Main Idaho Real Estate Insights

For Perspective:

Todd has been waiting for over two years for the market to shift. He decided to rent because he feels houses were over-priced. Unfortunately, the market that people have been predicting to shift since 2015 is still strong. Is renting a good idea while you wait for home prices to come down?

Let's review the last two years of renting a home and what it costs renters.

  1. Let's just say that you have been paying $1,500 per month rent for a home. In the last two years, you would have spent $36,000 of real cash from your bank.
  2. According to the Intermountain MLS, the median price of homes went up basically $200k from December 2019 to 2021. That is equity not realized until you sell but still real money to your net worth.
  3. For two years, there were no advantages that could be taken as part of your tax return and lower your overall tax burden. Also real cash.

So how much "cash" could Todd have saved if he had purchased 2 years ago? Is it enough that even if the market shifted, he would have come out ahead?

Will the Boise Housing market crash?

Great question! Many media sources are saying that Boise will be the first to fall because we have been seeing such appreciation in home values. Also, we are recognized for such disparage between home prices and wages. What they are not talking about is that the reason prices have been escalating is that Boise is the most in-demand place to live. People are fleeing less than desirable places to live like Portland, Seattle, and most of California. They come here for the common sense we have, as well as the friendliness Idaho enjoys. Also, there is a lot to do, without feeling leary of your surroundings.

Is waiting for prices to come down the best strategy? It definitely is when you have a crystal ball! Until then, realize that buying a home is a long-term wealth strategy and a place families enjoy waking up in.

 
Posted by tlangford at 4/25/2022 9:14:00 PM

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