Boise area real estate and rental management blog
Recently, Boise Regional Realtors hosted their annual housing summit. Real estate and the growth of the Treasure Valley is something that is at the tip of everyone's tongue, locals and visitors alike. As Realtors, we are having conversations every day about the state of the market and where things are at.
When jumping into the Boise housing market, the first thing discussed was how prices are driven by low inventory and an increase in purchasing power for buyers. With the pandemic, many have also decided to make moves out of bigger, busier environments and head to a place where they are able to afford more and have some space to be able to live and still feel safe. The jump in the market is not, I repeat, is not due to lending practices as was the problem a decade ago. Buyers are coming in with large down payments and 23% of all transactions wihtin thee Boise area were cash which has contributed to the increase in homeowner's equity and reduces some of the risk from the market.
Another factor affecting Boise housing prices is the lack of high density units. In 2019, the housing inventory only consisted of 18.2% being 2 or more units within the structure. This takes into consideration condos, townhomes, apartments and other multi-family properties. Through June 2021, only 15% of all permits were for 2+ unit structures. Having more multi-family properties is a great asset to a growing community like Boise, as it allows for higher density per lot, it generally means more affordable housing options and also spreads out construction costs.
Overall, homeowners gained an average of $71,000 year-over-year through Q1 of 2021 which is the second year in a row Idaho has had the highest increase of any state. Even with housing prices increasing an average of 32% year over year in Ada County (Boise, Eagle, Kuna, Meridian, Star, Garden City), its continuing to show as a strong market and both a great time to buy or sell. Whether you're looking at making a move with your personal home or investment properties, reach out so we can discuss your goals and come up with a plan!
Paige Brown, Associate Broker, Swope Investment Properties
Boise Investment Properties Team Blog