Real Estate Market Update for Boise and Nampa Idaho
Hey, Treasure Valley Dave here. Today, we’ll discuss what’s happening in the real estate market in Boise and Nampa, Idaho with our expert, Mareen Alstede.
Dave Edwards: I was looking through the real estate housing market summary you publish monthly with the most current data, and I’m seeing some pretty exciting things. What jumped out to you?
Mareen Alstede: The first thing that jumped out was that the median price for October went up in both Ada County and Canyon County. Everybody was expecting it to go down, but it came up! People thought a crash might occur, but we saw housing prices rise.
So, Prices Came Up. But What About Sales?
Dave Edwards: Are the homes still selling?
Mareen Alstede: Homes are still selling. I looked at what was happening this month, and we had 500 new homes come on the market. We sold 600 in 15 days and are still selling and seeing multiple offers.
Dave Edwards: So you had multiple offers twice this last week, which sounds suspiciously like what we saw about six to eight months ago.
Mareen Alstede: Yes. I spoke to another agent, and you will see multiple offers for homes under $400k. One house even had 14 offers.
Median Home Prices
Dave Edwards: I am looking at median prices here in Idaho. Eagle is $890,000, and Star is $631,766, so that’s pricier.
Mareen Alstede: But it was at one million dollars in the past.
Dave Edwards: That’s true.
Mareen Alstede: I think that’s fantastic.
Dave Edwards: Some people are going through tough times with the median home price in California. They don’t have Eagle money. But I see over here in Caldwell and Nampa, you can still get homes at the median price of under $400k. Nampa is at $389,000, and northwest Caldwell is at $374,000. And the national average is $388,000. So, you can still get homes in Canyon County under the national average.
Mareen Alstede: Yeah. It’s the good news that we’ve all been waiting for.
Dave Edwards: But as you said, we have multiple offers, especially at this price point. So if you guys are coming here to put in an offer, you want to make sure you can put in a strong one. Get pre-approved, have some money for down payments, and be flexible on your wants. Don’t fall in love with a particular house that already has 17 other offers on it because you may or may not get it.
Mareen Alstede: Yeah, don’t move in until it’s done.
Housing Market Predictions for 2023 and 2024
Dave Edwards: The National Association of Realtors (NAR) talked about housing market forecasts, specifically what was happening and what they saw coming for 2023 and even as far out as 2024. They see that unit sales are down 15% this year. So, for 2023, they’re saying it will only be down 7%. In 2024, then it will be up 10%. Thus, we see an almost similar situation over here regarding home prices.
We’re seeing the Boise housing market crash from last year and a slight one percent rise for 2023. But in 2024, NAR again considers a 5% increase in home prices nationwide. So I think what we’re going through is that we’ve probably been through the worst, and we’re starting to see things come out of the bottom. Would you think that that might be true?
Mareen Alstede: Winter is when everything slows down a bit. We also saw that, but now it’s picking up again. So, yes, that might be true. Winter is when you get the best deals.
Dave Edwards: That’s right.
Why Should You Buy a House?
Mareen Alstede: For real estate, everything has stayed the same. If there is a real estate property you want to live in, real estate will always come up. Even if it goes down, it will always come up. And it’s always a good investment. It’s your house; it’s your roof over your head. It’s something you own.
Dave Edwards: When buying a home, don’t buy the most expensive thing that you can buy because the banker says so. Buy something comfortable that you can own and sleep comfortably in at night.
Mareen Alstede: That’s a very good point.
What’s the Deal with Building Permits?
Dave Edwards: And I did see another thing, from our friends at Pioneer Title, that came out with this real estate housing price graph. They discussed the number of building permits pulled over time in Ada County and Canyon County. For Canyon County, we’ve never been this low. So we talked to some developers and discovered it’s not that the builders are not pulling permits. It’s that the county is not accepting them. They told our developers, “You could cement it if you want, but we’re not touching it for three to four months.” According to the county officials, February is the soonest we could expect any movement on it.
Mareen Alstede: Wow.
Dave Edwards: And it’s an important thing. When you see a number by itself without context, it could mean anything. So we have first-hand context for this number to show that even though you can interpret this as “Nobody is building in Idaho,” it’s the opposite. So the planning department is overwhelmed right now.
Mareen Alstede: Yes.
Inventory for New vs. Existing Homes for Sale
Dave: What other great things would you like us to know about this fantastic housing price chart you put together?
Mareen Alstede: Everybody is talking about inventory for new vs. existing homes. “It’s going up, and there will be ridiculous amounts of homes on the market.” Well, it’s a yes and no. Do builders have an inventory? Yes. Would they like to get rid of it? Absolutely!
As for existing home sales, you may need help finding good existing homes. Right now, I have a loan under 3%. I wouldn’t think about putting my house on the market at the moment. So if an excellent existing house exists, it will still go fast.
Dave Edwards: And I’m noticing that Canyon County, for example, has 680 existing homes and 573 new homes. Typically, new homes would only be 20% or 25% of the existing ones. So there aren’t as many existing homes as would be expected.
Mareen Alstede: Yeah.
Dave Edwards: And maybe that’s where we see part of the holiday thing where there’s just not as many coming on. Will the builders certainly make a deal with you now?
Mareen Alstede: Yes, but you have to be reasonable. You can ask for blinds, epoxy floors, a washer and dryer, a refrigerator, or buy down your interest rate. And if you have a good agent, they will look at the whole history.
Dave Edwards: Wow. So you recently posted about a new build, and they threw in a washer and dryer, right?
Mareen Alstede: Yes, they did. We had another one where we asked for some assistance with closing costs.
Dave Edwards: Sure. I wonder if builders are trying to get this inventory off their books before the end of the year.
Mareen Alstede: Yeah.
Dave Edwards: When January comes, will we see new deals?
Mareen Alstede: It’s going to change. I’m sure everybody is going to get ready for spring.
Should You Buy a Home Now?
Dave Edwards: That’s true; I like it. So what’s your advice for people thinking about it?
Mareen Alstede: If it’s the right time for you, if you have to move, then you should proceed. Interest rates came down. Our October market review showed that interest rates were at 7%. Now, the rates are down again but refinancing is always an option. Buy something you’ll be comfortable with.
Dave Edwards: That’s right. And one or two years later, when you want to refinance, you’ll look like a genius.
Mareen Alstede: Ten years from now, you’re an absolute genius.
If you’re thinking about Idaho, or if it’s a place you want to check out, contact us. You can also call or text me at 208-860-2004 or email our team at firstname.lastname@example.org. We’ve all moved here from somewhere else and are so glad we did.