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Nampa and Boise Housing Market Update
Dave: Hey, Dave Edwards, Treasure Valley Dave here in Nampa, Idaho. Today, we have a special guest: Mareen! She’s back to give us some Nampa and Boise housing market updates. She’s our local market expert who keeps her finger on the pulse of what’s going on in the valley.
Hi, Mareen! Thanks for stopping in.
Mareen: Hey, good to be back.
Dave: Oh, nice! I was looking over the reports you put together for June. What does all this data mean?
Housing Market Summary for June 2023
Mareen: Yeah, since I was gone almost all of June, that’s how it feels. What we see on data and what I feel in the market is sometimes very different. That was interesting; just going based on data for this month.
Dave: The data is what it is — it doesn’t lie.
Mareen: That’s right.
Dave: You have one for Canyon County and one for Ada County. There are some similarities but some vast differences between the two counties. Can you touch on that?
Lower Housing Demand and Inventory
Mareen: As everybody knows, demand has gone down. Same as our inventory, we are still very, very low. So it matches, and it’s quite a balanced market in both counties. It’s still going fast. Homes are on the market between 20 to 35 days — that is still fast.
Dave: I guess it doesn’t feel fast because we went through the crazy period with multiple offers, and homes were on the market for hours instead of days. But now we’re back to a normal, brisk market.
How Buyers Affect the Housing Market
Mareen: Yeah, in that market, it is. Buyers are picky and want to get deals, especially with those high interest rates. We averaged out at 6.5 this month, triggering some market action. So we have more inventory, but also, a couple more houses went pending during that time.
And this is the turning point for the market: June. After that, school is going to start in August. If you don’t lock in your house now, you might not be able to get into the school district where you want it to be.
From now on, we will see inventory slightly going up. We will feel a difference with interest rates being higher than in June.
Interest Rates and Inventory
Dave: Regarding interest rates and inventory, home builders are building like crazy. Last I heard, CBH was planning on building 600 homes this summer, but I also saw CBH is giving $25,000 incentives to help buy down interest rates and other closing costs.
Mareen: I also read that article, but I don’t see them. I am still waiting to see if inventory comes on the market or if the construction companies are busier and putting more houses on the market. So I’m curious if they’re still on track for that or if it’s just going to be delayed, but I’m not expecting to see that inventory in the next two months.
Dave: So then our inventory in general, whether it’s existing homes or new construction, will still be historically low.
Mareen: It’s still going to be very low. We’re barely scratching 2019 levels for the same months. But yeah, it will tickle up a bit, but not a whole bunch.
People Are Moving from Ada County to Canyon County
Dave: So I was researching for another video recently and discovered that most people moving into Canyon County come from somewhere other than San Diego or Sacramento. Instead, they’re coming from Ada County.
I look at your numbers here, and it says that the average sale price for homes in Ada County is $140,000 more than they are going for in Canyon County. Could that be the reason why more people are moving here? And what does that mean for the market in Canyon County in the future?
Mareen: So it has much to do with many people moving here in the last two years and renting to see what the market does. Everybody was waiting for that housing market crash to happen. And yes, prices came down. It’s not as significant as everybody hoped, but they came down simultaneously as interest rates increased.
Those people are now realizing that renting doesn’t make any sense. Talking about the difference, if you can buy the same house for $140,000 or $100,000 less in Canyon County, I would also move to Canyon County to get a better deal and make it affordable.
Living in Nampa, Idaho
Dave: Absolutely, so Canyon County is a great place to be. Our houses are cheaper here in Nampa, Idaho, and it feels less like California.
Meridian and Boise feel like California because there’s more stuff going on. It’s not the bad stuff — just more shopping, more traffic, and stuff like that. But out here in the Nampa area, it’s not the same. Even if you go up to Middleton, it’s like returning to the country again. It’s just kind of a different feel.
Mareen: Finding homes in the country is sometimes a little tricky.
Spring Market Exists
Dave: What else did you get from putting all these numbers together?
Mareen: What was very interesting for this month was something we experienced ourselves. We had a client looking to buy a house in the country — it was acreage. And we saw many homes on the market for over three months up to a year. And all of a sudden, they started to get traction again.
Dave: That’s because your people were looking.
Mareen: Exactly, and guess what? It got snagged away before we got a chance to do anything. So that was interesting. There was a spring market even. It was different and less significant than usual, but the spring market existed.
Dave: So what—
Mareen: And what was your question again?
Should Buyers Wait Before Buying a House?
Dave: Oh, I was going to ask about when you’re in that situation with your buyers, and it’s like, “Oh, it’s been on the market for almost a year. We have time to think about it.” If it’s the right house, do your buyers have time to consider it?
Mareen: If it is the right house and a good price? For this house in particular, they put it to a price point where it was spot on, which triggered a lot of interest. If you find the right home, you must pull the trigger; you must be ready. That’s still the most important part. You must prepare, talk to your lender, and ensure everything is ready to go.
Dave: Don’t assume a house will always be available just because it has been on the market for a long time. If it is the right house, you want to move into it.
Mareen: Yeah, it just takes one other person to like the house, that’s all.
Dave: Good point. What else should we be looking for in the market coming up? Let’s say I’m a buyer, and you said that things are starting to change now, especially with people returning to school pretty soon. What should I remember if I’m a buyer looking in the Treasure Valley?
Mareen: It’s a great time to start looking now. You’re going to get excellent deals. Talk to your lender — there are programs about the interest rates when they come down again, and they will eventually come down.
But in the year’s second half, prices will come down again, and inventory will build up slightly. We’re not talking dramatically, but it will change, and it’s a great opportunity to buy, especially for the people that have time, are renting, or are a little bit flexible.
Should Sellers Wait Before Selling a House?
Dave: Nice! I have the same question from the seller’s side. If I’m a seller, is this a time I should sell my house and move somewhere else, or should I sit on it a little longer?
Mareen: It depends on what your situation is. There’s a reason why a seller is thinking about selling. And in that sense, timing doesn’t matter. If it’s time for you to move on, then it’s time.
Selling High and Buying Low
Dave: Is it true, though, that if I sell at the top of the market and buy at the top of the market, it’s about the same at the end of the day as selling down here and buying down here?
Mareen: The ideal situation, of course, is you sell up and buy down. But can we time this? Is that the way to handle real estate? It depends on your situation.
Contact Us If You Have Housing Market Questions
Dave: Very true, very true. Wow, a whole lot is going on there. So, what should people do if they have more questions about the Nampa or Boise housing market for their particular situation?
Mareen: They should give us a call. What do you think?
Dave: You know what? You’re right. And so, what do you guys out there think? If you have any more questions, please call, text, or email us — we’d gladly answer those for you. And we will happily share more information about the market, get you involved, and answer your questions. Let’s do it!
Download the June 2023 TVD Market Summary
To get your copy of the Treasure Valley Dave housing market summary: Canyon and Ada County, go to our website, cruise over to the Resources tab, and sign up for our email blog so you won’t miss a single one. Thanks for stopping by, Mareen. It’s been a pleasure to have you here this morning.
Mareen: Thank you — pleasure being here as always.
Dave: And then we’ll do this again next month, right?
Mareen: Sounds good!
Dave: And as always, Treasure Valley Dave, looking forward to helping you get home.