Idaho Housing Market Update for March 2023
Hey, Dave Edwards here from Treasure Valley Dave. Today, we’re doing our Idaho housing market update in Nampa, Idaho. We just got the information from March, and I want you to know what’s happening here. So to make sure you get the best information possible, we’ve got our local expert, Maureen Alstede.
Dave Edwards: Treasure Valley Maureen, how are you doing?
Maureen Alstede: Hey. Doing well, doing well. It’s great; spring is here.
Dave Edwards: Spring! Is that why it snowed?
Maureen Alstede: I know. Shh, don’t tell.
Dave Edwards: Let’s jump into it and tell us what’s happening.
Maureen Alstede: I won’t say it will be interesting because that’s what I’ve been saying for the last three months. “It’s interesting.”
Dave Edwards: All right.
Maureen Alstede: It is still, but interest rates are navigating the housing market trends. As soon as housing market interest rates go up, it pauses. Interest rates drop slightly, and suddenly, we see activity again. So, it’s a very interest-rate-driven market.
What Does That Mean for People Buying a House?
Maureen Alstede: Don’t make it dependent on what your interest rate is. Ensure you’re in a comfortable price range where you looked for your house, and it’s between 6-7%. If you need a home, it’s time to buy a house.
Dave Edwards: These interest rates go up and down like a teeter-totter. What does that mean to buyers?
Maureen Alstede: Yeah, it does [resemble a teeter-totter]. I’m just looking forward to the interest rates coming down. When the prices are lower and interest rates are coming down, it’s a beautiful time to start buying a house.
Dave Edwards: That’s a great point because, for many people, it’s not just the price of the house overall that matters. What are you paying every month? If interest rates go up a bit, the house crisis we’ve seen goes ticking down, so your payment will still be about the same. So you pay less for the house but more for the interest rate. One thing I heard, and tell me if this is right, is that if interest rates come down to 3%, can people refinance again?
Maureen Alstede: Oh, absolutely, yes. Some lenders have lovely programs for that, so I highly recommend talking to a lender.
Dave Edwards: Really?
Maureen Alstede: Yes.
Dave Edwards: Wow, that’s pretty forward.
Maureen Alstede: Yep.
House Prices Update
Dave Edwards: Speaking of house prices, what’s happening in the market?
Maureen Alstede: I said it would be interesting. Median home prices dropped again because it also has to do with price category when selling homes. So we’re selling way more homes under $600,000, which will affect the median home price. Then last year, we had plenty of million-dollar properties selling like hot potatoes. Those sellers all have been back, and it will affect the median price we’re in.
We also see lots of activity in specific price ranges, so everything under $400,000 is not the hot potato but the super hot potato. And that’s for most counties, as we know. Canyon County prices are lower than Ada County, but Canyon County is the hot one.
Dave Edwards: Because you get more bang for your buck?
Maureen Alstede: Absolutely. So, we’re at $395,000 on the median home price. The national average is $375,000.
Dave Edwards: So we’re just a little over?
Maureen Alstede: A little bit over.
Dave Edwards: Can you still buy a house in Canyon County under that number?
Maureen Alstede: Absolutely, but it’s a hot potato. We’ve got to be prepared.
Dave Edwards: And do I see down here that in Southwest Caldwell, it’s $357,900, while in Northwest Caldwell, $368,000 is the median home price for a house?
Maureen Alstede: Yeah. And we just sold a beautiful house in Caldwell, and they got a fantastic deal.
Maureen Alstede: So another thing is that we had such a slight increase in the inventory. You can barely notice it. The demand decreased, so we had fewer buyers than last year. We also have very, very few homes on the market. So, right now, for Canyon County, if no new home were to come on the market, it would take us only 1.6 months to sell all the homes on the market.
Dave Edwards: Right. So, six weeks and they’d be all gone?
Maureen Alstede: And they would be all gone, yeah. Days on the market for existing loans is 59 days. That’s a short time.
Dave Edwards: And that’s all of them, though.
Maureen Alstede: Yes
Dave Edwards: For houses below $400,000, what are you thinking? How many days will they be on the market?
Maureen Alstede: Three.
Dave Edwards: Three?
Maureen Alstede: Only because there are so many offers to go through.
Dave Edwards: Well, you know, back in the old days, we saw multiple offers. Do you see that in some price categories?
Maureen Alstede: For sure, in some price categories, yes. And then everything under $500,000, you’ll get the attention on the house two, three weeks in. After it’s listed, you will see some action on the house.
Dave Edwards: Nice. So, what else do you have on your housing market chart?
House Market in Ada County
Maureen Alstede: Let’s learn a little bit about Ada County.
Dave Edwards: Yeah.
Maureen Alstede: It’s very similar.
Dave Edwards: Prices are higher.
Maureen Alstede: So, where to buy in Ada County? Kuna is my winner.
Dave Edwards: Wow.
Maureen Alstede: This one is under $400,000; 99 homes sold in total, and we got a lot of calls.
Dave Edwards: And the median price is $385,000.
Maureen Alstede: Yes, $385,000. Kuna is extremely close to Boise if you work there. It’s a great place to be; it’s been in a developing state. There’s still a little bit to go, but it’s great. It’s a great spot.
Dave Edwards: I did hear on the local radio station that Kuna does not have an Olive Garden. So, if you guys have to have an Olive Garden, sorry, you might have to live in Nampa.
Maureen Alstede: I mean, it’s like 10 minutes away from Meridian. Isn’t there an Olive Garden?
Dave Edwards: Probably.
Maureen Alstede: Yeah.
Existing Homes Sell Well
Dave Edwards: So, what else are we seeing? An existing house spends fewer days on the market.
Maureen Alstede: Yeah.
Dave Edwards: Does that mean it’s heating up more?
Maureen Alstede: It depends on the area. There are some pockets where I noticed that. In North Meridian, homes on the market are way lower than in South Meridian, so it’s fascinating. It has something to do with the price in general. So, under $600,000 or $500,000, it depends on which price category you were looking at and how quickly you have to trigger.
Strategies to Buy a House Successfully
Dave Edwards: So, what is my strategy if I’m a buyer? Let’s say I have plenty of money and must find a particular place.
Maureen Alstede: So, have all of your ducks in a row. Give us a call.
Dave Edwards: Well, you currently have a listing at $800,000, right?
Maureen Alstede: Yes.
Dave Edwards: You ended up with multiple offers on that house.
Maureen Alstede: Yes, and it’s a beautiful, wonderful location.
Dave Edwards: So, if the house is nice and you like it, there’s a chance that many other people will like it too.
Maureen Alstede: If it’s priced right, even in the higher categories, and it’s a good house, it will go off the market.
Dave Edwards: What is your strategy for someone in the $350,000 to $400,000 range?
Maureen Alstede: If the house is priced right, don’t try to lowball on the house. Otherwise, there is somebody else who is going to buy it.
Dave Edwards:
Yes, and you may not get it. So, it’s like, don’t fall in love with that house. Maureen Alstede: Yeah, it was no problem to make an offer in November or December and have a contingent on another sale. This time, try to be under contract and then start making offers. There is a high chance that your offer will be rejected because of the contingency.
Dave Edwards: If you’re selling your home in California or wherever, do you want to be as far along as possible to make your offer appear stronger?
Maureen Alstede: Yes, the further you are in the process, the better it is.
Working with a Local Lender: Good or Bad?
Dave Edwards: Is working with a local lender a good idea?
Maureen Alstede: Absolutely. Local lenders know the market here; they know how things work. We love personal contact; Idaho is about having a relationship with everybody. And we like to talk to somebody and not just through email. So, working with a local lender is a great idea.
Dave Edwards: So, on your listings, when an offer comes in, and the lender is some big out-of-state corporation, what does your seller think?
Maureen Alstede: It comes down to educating the seller on the chances and how hard it sometimes can be to get in touch with somebody. So the test for all of us is to call and see if we can get a hold of somebody.
Housing Market Future
Dave Edwards: Very great. Do you have the last box scores on what the markets doing until March?
Maureen Alstede: We will see a slight increase in inventory for April. I track it all every week. Last week was the first week we had a slight increase so we will have more inventory and a few more sellers. And the school year is ending, but we also know a few more buyers are coming in too.
Dave Edwards: And that’s something that happens every single year.
Maureen Alstede: Every spring.
Dave Edwards: Whether it’s Corona, the housing prices, or whatever, all we see in May is a high month for demand.
To Wrap Up
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