Boise Luxury Market 2020
Many homeowners in Boise found themselves with more home equity than they realized. At the same time their wages were increasing last year. These two factors combined can act as a trigger for the homeowners to think about making a move to a larger or more expensive home in the luxury market. Let's take a look at the forecast for the Boise luxury real estate market in 2020:
Three Factors to Take Into Account in the 2020 Boise Luxury Housing Market
The U.S. economy, as well our local Boise economy, is strong right now and, there are many buying opportunities in the luxury end of the market. Thomas Veraguth, Strategist at UBS Global Wealth Management, says in Barrons.com, “There’s a good link between luxury real estate prices and [economic] growth.”
Available inventory is a one of the key factors effecting home prices. At the higher price range, the inventory is greater when compared to the entry-level Boise market, making moving up to a luxury home a growing reality for many buyers right now.
With more buying opportunities at the higher end, luxury home buying activity increases. The above mentioned article states, “Affluent homebuyers will start to come out of the woodwork as they find rising luxury rents less appealing and sellers get even more negotiable on price.”
Buyers looking in the luxury market are taking the opportunity to negotiate on price in a segment where there are more choices, too. Higher price range homes sold for an average of 96.94% of the list price in December '19.
Another important thing to remember: Current low interest rates increase buyers' purchasing power.
Buyers Are Coming Back
As we know, buyers are often sellers too, especially those looking to move up. Homeowners with an entry-level home can take advantage of the inventory shortage at the lower end of the market, thus driving higher sales prices for their current homes. This combined with growing equity in their current homes, creates a perfect opportunity for them to enter the Boise luxury real estate market this year.
If you’re considering entering the luxury market, 2020 is shaping up to be a great year for those who are ready to make that move. Contact us - your local real estate professional to set your real estate plan for the year.