Boise & Ada County Idaho Market Report for July '21

Inventory of homes for sale continues to grow and so do the selling prices in Boise real estate.

The median sales price for homes in Ada County reached $540,000 in July, up 2.9% from June.

While our region has faced insufficient supply compared to demand for years — the main driver of home prices — July marked five consecutive months of inventory growth. While still low compared to previous years, there were 1,055 homes available for sale at the end of the month, up 44.7% from June.

After home prices rose above the $500,000-mark in May, homeowners may have been encouraged to list, as existing inventory was higher than the previous month and year for the second month in a row, something not seen since March of 2020 just before the pandemic hit the market. At the end of June, there were 729 existing homes available for purchase, up 50.3% from June 2021 and up an astonishing 116.3% compared to July 2020.

Despite more inventory, the speed of the market continues to be fast. The number of days between when a home was listed for sale and an offer was accepted (also referred to as Days on Market) was at 13 days, on average, in July — 22 days faster than the same month last year.

While the uptick in the number of homes for sale is great news for buyers, they must still be prepared to act quickly. Buyers must also know that an offer acceptance is only the beginning of the work that a REALTOR® will complete throughout a transaction working on behalf of their clients.

Source: Boise Regional Realtors

Boise Real Estate Market - 2nd Qtr 2021

1187 single family homes sold in Boise in the last quarter.  

Average listing price was $552,545; median listing price was $474,900;

Average selling price was $568,762; median selling price was $490,000.

Average DOM (days on market) was 4.

This information is based on IMLS and it's for single family homes only.

Boise Idaho real estate market remains one of the hottest markets in the country.  Home buyer demand vastly exceeds the supply of homes in our market.  This situation has been creating bidding wars thus pushing real estate prices up.

Homebuilders have been trying to fill the supply gap but new homes are mostly priced higher.  Subsequently, average home prices in Boise and surrounding areas have been recording new highs almost every month.

Real estate is local.  If you're planning to sell your house or condo, Contact us for your Free home evaluation.  Call (208)928-5007 today!

How to Downsize to a Worry-Free Home

If your lifestyle has changed with time and you’re ready to leave the big house for a smaller, more manageable home, it might be time to downsize. Deciding to shift to a more worry free home is easy – determining where to begin is much harder.

The accumulation of decades of living can be overwhelming; taking the move step by step will help you break it down into manageable stages.

Before you do anything else, do your research and find the right location for your new home. Explore different communities and learn the pros and cons of each. While seniors often move to 55+ developments, there are also many other choices for low or maintenance properties. In many cases the HOA takes care of all outside maintenance, including snow removal or your lawn maintenance. Boise offers worry free community choices, including 55+ senior communities. 

Boise Idaho 55+ Communities

You may condominiums, townhouses, and patio homes as part of your research; many of these home styles can be found in areas that are not part of a 55+ community and often offer walking trails, fitness and aquatic facilities, and other active lifestyle amenities. In many areas, luxury high-rise buildings have become popular; many seniors enjoy living close to the amenities of a city, in a secure environment with a doorman.

Once you determine the new location or community you like, it’s time to sell your current home. Don’t let your accumulated “stuff” deter you. Clean out and utilize storage facilities for precious items you need to keep. Hire a professional moving company to pack up and move you to the new home. The moving company will store your belongings if needed till you're ready to move into your new home.

Moving out of a cherished family home can be an emotional decision, but the benefits of a low- or no-maintenance lifestyle can free up your time and energy so you have time to travel or just enjoy each day without the stress of managing a big home and yard. Make it easier by just taking it one step at a time.

Contact your local Boise expert - Krystyna Ryan - for assistance and free tour of available homes.  Call (208)918-5007. I'll be happy to help!

Key Points to Remember When You're Selling Your Home

Boise real estate market right now is full of unprecedented opportunities for home sellers. High home buyer demand combined with record-low housing inventory is creating the ultimate sellers’ market, which means it’s a great time to sell your house or condo. However, there are still some key things to know so you can avoid costly mistakes and win big when you make a move and sell your Boise Idaho real estate. Click below if you're considering selling and wonder what you're home is worth in today's market:

Today’s sellers’ market might be your best time to sell your property. If you’re considering selling your Boise house or condo, Contact us today. Let us help you navigate through the process and prioritize these key elements:

1. Price Your Property Right

When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Even in a sellers’ market, listing your house for the right price will maximize the number of buyers that see your house. This creates the best environment for bidding wars, which in turn are more likely to increase the final sale price. A real estate professional is the best person to help you set the best price for your house so you can achieve your financial goals.

2. Keep Your Emotions in Check

Currently, homeowners are living in their houses for a longer period of time. Since 1985, the average time a homeowner owned their home, or their tenure, has increased from 5 to 10 years (See graph below):

This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you purchased or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from that sentimental value.

For some homeowners, that connection makes it even harder to separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your House or Condo the Right Way

We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes. However, not all buyers will feel the same way about your design and personal touches. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage, clean, and declutter so they can visualize their own dreams as they walk through each room. A real estate professional can help you with tips to get your home ready to stage and sell.

Idaho Multigenerational Housing Popularity Soaring

Idaho multigenerational homes are gaining popularity.  This is actually a nationwide trend but quite evident here in the Boise area, especially in the Boise surrounding cities, such as Nampa, Kuna, Caldwell.

If your house is feeling a little cramped with the addition of adult children or aging parents, it might be time to consider a move-up into a multigenerational home that better suits your changing needs.

With benefits that include a combined homebuying budget and shared caregiving duties, an increasing number of households are discovering the value of a multigenerational home.

With such high demand for houses today, now is a great time to sell so you can upgrade to a multigenerational home that may better suit your evolving needs.

Search Boise & Treasure Valley Homes For Sale

IS IT A GOOD TIME TO SELL MY BOISE HOME?

If you pressed pause on selling your house last year, now may be the best time to put your plans back into motion while inventory is so low. Contact us or call (208)918-5007 today to get the process started.

In the sellers’ market, which we are in Boise real estate right now, you have a huge advantage in the process. And here’s another win – you can also use your equity toward a down payment on a new home when you move.

Wondering where you’ll go if you try to move while it’s so challenging to find a home to buy? Well, in many areas, including Boise Metro, there are more homes available at the higher end of the market, so finding a move-up home may be less of an issue if you’re ready to search for your dream home this spring or summer. One option would be a new home offered by many developers in the Boise area:

Search All Boise Metro Homes For Sale

View New Construction Homes For Sale

Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.

Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains:

“Overall, the index’s monthly increase was driven largely by a substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.”

Normally, spring is the busiest season in the housing market – the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say:

“We will pay close attention to see if this newfound optimism develops into a trend.”

What does this mean if you’re thinking of selling your house?

The fact that there are so few houses available for sale today is one driver that’s encouraging consumers to think more positively about selling. The National Association of Realtors (NAR) states:

“Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).”

With so few homes available to buy, your house will be more likely to rise to the top of an eager purchaser’s wish list in this competitive market. Today’s high buyer activity is creating upward pressure on home prices and more multiple-offer scenarios. According to the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing.

Contact us today for a Free Home Evaluation and find out what your Boise home is worth in this market.

Boise & Ada County 2020 Real Estate Market 

We cannot have a 2020 review without first addressing the impact that COVID-19 had on the real estate market locally. 

The year started strong with January 2020 sales 21.5% higher than in January 2019 but began to taper off in February and March as the uncertainties of the pandemic made their way to our local market. In April and May, when our spring market typically begins to ramp up, sales activity dropped by 19.5% and 29.7%, respectively, because of the government-mandated shutdowns and restrictions.  

Sales began to pick up in June, then jumped 22.0% year-over-year in July and remained elevated through November, compressing nearly a year’s worth of activity into just six months. 

Despite the many challenges to buying and selling homes during the pandemic, home sales were able to continue due to a greater adoption of virtual technology for showings which limited in-person activities, as well as additional steps taken by REALTORS® to protect clients and properties when meeting in person couldn’t be avoided.

In total, 11,728 homes sold in Ada County in 2020 — 5.2% more than in the previous year. The only other time we saw more sales in one year was in 2005 which had 11,974 sales. This represents existing and new construction combined. 

Low Mortgage Rates Increase Purchase Power 

Historically low interest rates allowed home sales to quickly recover and then outpace 2019 levels. According to Freddie Mac, the 30-year fixed rate mortgage in the U.S. was at 3.11% on average in 2020 — the lowest ever based on data going back to 1971. These low rates increased purchasing power for buyers, allowing them buy despite rising prices, and in some cases, compete in multiple offer situations. 

Home Prices Driven by Supply vs. Demand 

A major factor that pushed home prices up was insufficient supply compared to demand, especially for existing inventory. For most of the year, the average Days on Market metric (DOM) for existing homes was at 20 days in 2020, on average, compared to 42 days in 2019. Then in October, DOM dropped to just 13 days — a record low based on data going back to 2004. This meant buyers had to act quickly and write a competitive offer when they found a home. 

DOM vs MSP Ada 2020

On the last day of December 2020, there were just 333 homes available for sale, for both existing and new construction combined — 79.6% lower than December 2019 and a record low based on data going back to 2004. More inventory is needed to bring balance back into the market at all price points and product types. 

This begs the question, “How can home sales be up while inventory continues to drop?”  

Unlike the closed sales metric which reflects all homes sold during the month, the inventory metric fluctuates daily and is based on the number of homes listed as “active” in the multiple listing service on a given day. For our monthly reports, it’s the last day of the month. This “snapshot” of inventory compared to a monthly total of sales is one reason we can see more closings than available inventory.  

Additionally, once a seller accepts an offer, the home is no longer considered available inventory. With the average Days on Market at less than a month, many properties that were available during the month are not reflected in the reported inventory “snapshot” at the end of the month. 

Factors Restricting Inventory 

The historically low mortgage rates mentioned earlier also caused a surge in refinancing at the beginning of the year (SOURCE) which likely kept some of the existing homes that may have otherwise been listed for sale off the market. Then after COVID hit, it further reduced the number of homeowners willing to sell due to safety concerns or general uncertainty. While we cannot quantify how many homeowners held back from listing, it was something we heard often from REALTORS® throughout the year. 

In addition to the impacts of refinancing and safety concerns, there were a variety of other reasons existing/resale inventory has been so limited. Many homeowners have delayed listing until they find their next home, which takes longer due to already limited and fast-moving inventory; some homeowners may not have felt they could “trade up” from their current home due to current prices, despite equity and low mortgage rates; or people may have been unable to manage a sale while working from home or if they had children at home for school. 

Interestingly, the push to stay home for work and school as a result of COVID had people across the country re-evaluating where they wanted to live. Wills added, “It’s no secret that Idaho has been one of the top states experiencing growth over the past few years, and the ability for many to work from anywhere brought more interest than ever, equating to even more demand for homes in our market.” 

The Role of New Construction 

The lack of existing/resale inventory put tremendous demand on builders, and they have been responding. According to Construction Monitor, 3,336 permits were approved for new single-family homes throughout Ada County during 2020. When we compare this permit count to the 4,010 new homes that sold in 2020, it suggests that we are not overbuilding as demand is absorbing all supply that becomes available, reinforcing the need for continued building.  

New home sales made up 34.2% of all sales in 2020, up slightly from 2019. New construction typically costs more than an existing home, due to higher increasing land, labor, and materials, so as the share of new home sales increases, it pushed up the overall median sales price. The median sales price for new construction in Ada County in 2020 was $424,995 compared to $375,000 for existing homes. Taking the two segments together, the median sales price for the market overall was $392,230 in 2020. 

Looking Forward 

Looking forward to 2021, the Boise Metro area continues to be among many economists’ top picks for markets that should see continued growth. The National Association of REALTORS® even included Boise in their list of markets that are “expected to perform well in a post-COVID-19 environment.” (SOURCE)  

To help balance the market out, again, we need more inventory among new and existing product. We hope to see more homeowners list in the coming months and take advantage of the ongoing demand. One additional opportunity for more existing inventory, though, comes from investors holding single-family properties. Investors should talk to a REALTOR® and tax professional to understand their options for selling their rental homes and potentially rolling proceeds into other sectors such as commercial or multi-family to diversify their portfolios. 

A fast, competitive market like ours presents challenges and opportunities to buyers and sellers alike. Whether you’re looking to buy or sell, it’s never been more important to work with a REALTOR®. They will help identify potential options for purchase, connect you with a mortgage lender, help craft a competitive offer, and negotiate on your behalf, allowing you to make decisions confidently and quickly to achieve your real estate goals.

Credit: Boise Regional Realtors

Home Buying in Today's Market

Buying a home in today's real estate market, in Boise and Treasure Valley doesn't have to be difficult. The fact is that Boise Idaho market is what we call "Seller's market".  Due to the low inventory of available homes, more buyers than sellers, home sellers often are in the position to dictate prices and terms.  Buyers often find themselves in the multiple competing offers situation. How to positions yourself as a buyer in this market?  Below are steps you may take to make your offer stand out:

Contact me anytime at (208)918-5007 for a Free consultation and the steps we can take together to find the right home and make your offer stand out among other competing bids.

Why Is My House Not Selling?

When you decide to put your home on the market, you’re likely armed with a certain sense of caution. You don’t expect it to sell overnight, but you also don’t expect the process to drag on for months. This is especially true in our hot 2020 market. Here, we'll analyze top 10 reasons your house is not selling and what adjustments you could make to fix the problem.

10 Reasons Your Home Won't Sell

1. You Priced it Too High

Start with another look into the pricing.

Determining the value of a home depends on many factors. The process of determining the value of the property may be complex. You may contact a real estate agent for your home evaluation. It may be advisable to contact several agents to see how different experts value your home and which factors they take into consideration. You can then go for the median of these prices or tweak your price according to their advice.

You might also be hearing feedback on the price from people who come to view your home. If a lot of them seemed interested but outright told you they can’t afford your price, you might want to revise it in order to make a sale.

Of course, the aim is not to reduce the price below actual market value, but rather to give up your own private notion of what your home is worth and be more objective.

2. Your Property Marketing Is Not Adequate

Giver your home the widest possible exposure. The more potential buyers see your home in person or online, the more offers you can expect. That’s why marketing your home should be crucial if you are looking for a quicker sale and best possible selling price.

A reputable listing broker will ensure that your home is marketed and advertised worldwide.

You can also spread the word offline. Talk to friends and acquaintances, and ask them to spread the word too. You never know whose interested ear your offer might reach.

3. You Are Marketing to the Wrong Audience

Along the same lines – you might be marketing your home to the wrong kind of people. Perhaps it would be more suited to an elderly couple than a family with four kids? Who is looking at your ads, and who are the people who are actually coming to see it?

Consider the space and who it would suit most – families with kids, couples, seniors? Come up with a story for your target audience, and market your home by emphasizing the appeal it has for a specific group of people.

Not everyone who goes out to view a home can imagine all the possibilities. It’s up to you to show them what your home can be and how it can fit into their stage of life and their future plans.

4. Your Home Is Hard to Find

Put up a sign (it doesn’t have to be a For sale sign) to make your home stand out. For example, place a bunch of blue balloons on your porch, making it easier to spot your house from the street. That way, potential buyers will have an easier time finding you.

Most buyers look at dozens of homes, often more than one on the same day. If they have to keep checking for the address and trying to spot your house number from their car, your property won’t be as memorable.

The less hassle someone needs to go through to get to you, the more open they will be to viewing and hearing your price.

5. Your Listing Photos Are Low Quality

Even if your home looks amazing in real life, hardly anyone will want to come after seeing very bad images of it.

First of all, the quality of the photos needs to be exceptional. You can shoot them with most smartphones today, but you can also hire a professional for the job. That’s especially advised if you’re demanding a higher price and your home can potentially attract a lot of interest.

Next, make sure you get multiple angles of everything. Take the photos in some sort of order – as you would naturally move through the house. Focus on capturing all the major areas from two or three angles, and show how the rooms are connected to each other as well.

Don’t forget the front, the back, the driveway, the street, the yard – anything that contributes to the value of the home and can show an interested party what they can expect.

Shoot images of the finer details as well – doors, windows, stairs, the kitchen, the tiles. But don’t try to mess with the perspective and make the rooms appear bigger or the ceilings higher than they are. When viewers come to see your home, they will only end up leaving disappointed.

6. You Have Not Staged the House 

So, you don’t want to show the rooms in the state they are when you are occupying them, neither in the images nor in person. You might still be living there, but in order to sell your home, you need to help others imagine their life there, not show them what your life looks like.

Remove as much of your personal effects as possible – family photos, trinkets, and memorabilia. Keep them stored somewhere when people are coming for a viewing.

Set up all the rooms to showcase them in the best light. This might mean moving some furniture around, but you can get used to the new layout if it’s for an important cause.

Take a look at the layout you have now, and consider how best to use the space. Set up the bedroom so that a viewer will immediately associate the space with sweet, restful sleep. Maybe you want to move the bed so that the window and door are to its sides? Maybe you want to move the sofa so that it faces a window? Could the dining table make better use of your kitchen space?

If you are adding any décor to the space, keep it neutral. Flowers and plants are a great choice, as are neutral paintings or prints. Emphasize the coziness and warmth factor.

7. Your Home Is a Mess

 Why Your Home Hasn't Sold and How to Fix It

You certainly can’t be expected to keep the home spick and span 24/7, but you should also make an effort to clean and tidy the place before a viewing. You might want to achieve a lived-in effect, but that does not mean it’s okay to leave your dirty dishes in the sink or let the trash sit.

Look at every viewing as your chance to make a sale. It’s not that buyers won’t like the home because it’s messy – it’s that they will simply leave with a less than amazing experience and memory. They might end up wowed more by a home that was just as good as yours, only tidier.

Also make sure you do all the necessary repairs before you put the home on the market. A fresh lick of paint can go a long way. So can taking care of any stains, burn marks, chipped tiles, and other marks that testify to your use of the home. The more repairs and renovations you can shoulder before the sale, the higher your chances of making a sale faster. Plus, it will allow you to demand a higher price.

8. Your Curb Appeal Needs Work

You can never have a second stab at a first impression, so you want to make sure potential buyers will have a positive experience when they come to see your home for the first time.

Sure, your garden and driveway may be in good condition. However, if you let the gutter get clogged, if you have a whole lot of unraked leaves in the yard, if the lawn is going a bit wild, or if there are more weeds than plants in the garden – people will start to wonder how the rest of the home is treated.

Do a complete spruce-up of the front (and back) yard. Fresh plants, a freshly mowed lawn, or a new doormat can go a very long way in attracting your buyers.

9. You Are Rude and Unwelcoming

Showing a home can be stressful. There are a bunch of strangers passing through your home, touching things, discussing your decorating taste, and asking all kinds of questions. 

However, the more pleasant and natural you are, the better your home will fare on the market. People will want to work with a homeowner who is kind, relaxed, and who can answer their questions and show them what a home can be.

It may be best if you leave the house at the time of showings and let real estate agents do their job of guiding their clients thru the property.

10. You Are Too Pushy and Too Welcoming

On the other hand, you can become simply smothering if you talk too much and keep pointing out different features. 

You want them to have some time alone with the space but try to stay on hand to answer questions. Let the home speak for itself, and allow the good work you’ve done in staging and preparing it to do the talking.

Some people will specifically be put off by those who are too sweet and kind to strangers, so don’t be that person. Keep a professional distance. After all, these are people you’ve never seen before – how bubbly can you get with them? If you get too cozy they may end up asking you the reasons why your home is not selling, which is better to avoid.

Don’t try to hide any repairs or potential future issues, either. A lot of buyers will be fine with tackling an issue that may arise in a couple of years, such as roof repairs, if they know to expect it.

Think of all the negatives you have on your hands and the best way you can be open about them. Sometimes, there is no silver lining. If your road is very busy and loud, for example, there’s no way you can sugarcoat that. It's advisable to be honest.

Main Reasons Why Your Home Is Not Selling

Certified eco homes are a smart investment.

Eco upgrades such as high efficiency heating and cooling systems deliver savings in both the amount of energy you use and greenhouse gas emissions. Plus, studies show that homes with ‘green’ certifications sell at a higher value, and faster2 than noncertified homes. You’ll also enjoy lower ongoing costs for electricity, gas and water. That’s why making green choices is an investment that yields both immediate and long-term value.

How to get ENERGY STAR certified

To have your home ENERGY STAR certified, it must be tested and inspected by a Certified Home Energy Rater – such as a Rater from Building Energy – who has been accredited by the Residential Energy Services Network (RESNET). Before construction begins, the rater works with the builder to ensure the home design meets the program requirements and then performs rigorous testing and inspections during and after construction to verify they’ve been met.

A win-win situation

The environmental and economic payoffs make energy efficient homes a win-win situation. By investing in the earth’s future, you are investing in your future too. And best of all, you’ll get to build the home you’ve dreamed of while doing so.