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Real Estate Investor Blog
Boise area real estate and rental management blog
Residential Round-Up

Since our last Swope Investment Properties newsletter, quite a bit has changed in the Boise area market.  After seeing continuoous increases in price and decreaasing inventory for years, and at an acceleraated pace during COVID, we are now at a point where things are normalizing and softening.  Althought none of us have a crystal ball, we do have experts, data and knowledge to forecast an educated picture of the near future of the real estate market.

 

The beginning of 2022 started off with a bang.  Boise and the surrounding area had homes flying off the shelves with multiple offers heading into late spring.  However, when a rate hike hit mid June, we started seeing listings aquire more days on market with fewer offers.  Many potential buyers who were on the cusp of qualifying either no longer qualified for the budget they were currently looking at or weren't able to get into the market at all.  With interest rates quickly going from 3 to 6%, the volume of regular home sales has decreased by 32% in Ada County, which includes the cities of Boise, Meridian, Star, and Kuna.  While the volume of sales are down, nationally prices are up 15% year over year while starting to see some reductions and locally, we only have about 5% price decrease year over year.  Besides during the housing crash, throughout every past recession, home prices have actually increased.

So what are we expecting to see for the future?  We know that the fed plans to continue adjusting the rates and we'll likely see them go up with perhaps a few smaller decreases sprinkled into the mix.  Although this geatly affects buying power as it impacts one's payment (and most buyers live in the payment and that is how they budget for a home) the rates are still low historically.  As this will have the greatest impact on entry level buyers, its anticipated we'll continue to see a bit of tapering of pricing.  This is also affecting the move up market as those who are wanting to sell their starter home and transition to something larger, more expensive, etc, are having a harder time finding a buyer.  The anticipation is that this will continue throughout 2023 as things normalize.

 

So, if you're a buyer or seller, what does this mean for you?  Well, it all depends ln your specific situation and what your goals are.  In general, as a buyer, I wouldn't plan on prices taking a major hit as that's not expected.  Right now, you have the benefit of not competing with a crazy amount of other offers and having to remove contingencies to be competitive.  There's time to think about your decision and room for negotiations whether that be for repairs, closing costs credits or even help buying down the interest rate.  For sellers, thanfully most still have a good amount of equity in their homes due to the past few years and are able to pivot a bit on this market while still coming out ahead.  It's important to have an experienced agent working on your behalf to best market your house and also be able to discuss the changes that are happening so you are prepared.



For more specifics on your area, again please reach out to your trusted Swope Investment Properties agent.  We're here to help anytime!

 

Paige Brown

Associate Broker

Swope Investment Properties

 

 

 

 

 

 

 

 

 

 

 

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