As we've entered into another year of unprecedented times in the real estate market, the answer everyone wants to know is what to expect with the market in the Boise area. Although none of us have a crystal ball, we do have experts, data and knowledge to forecast an educated picture for the near future of the real estate market.

After seeing the market on fire the first half of 2021, around mid June we started to see a bit of leveling. Buyers were fatigued from missing out on homes due to having to compete with cash offers well over list and the amount of inventory started to creep up. As we entered into fall and early winter, we were seeing a tad longer days on market as well as some price reductions. Well, come the holidays and just after the new year, the market started to ramp back up again. For buyers looking at the median price range around $450,000, homes were flying off the shelves. So what do we anticipate?

According to the chief economist for National Association of Realtors, our core inflation is up to 4% which is affecting buyers in the starting to mid-level price range. High end homes are not expected to see much of a slow down because buyers in that bracket are still going to be buying as a way to hedge their money against inflation. Along with the rise in inflation also comes the increase in mortgage rates. It is estimated rates will increase approximately .7% by the end of the year, with the biggest jumps coming in third and fourth quarter. Although this greatly 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 historically low compared to where they've been in the past. As this too will have the greatest impact on entry level buyers, it's anticipated we will start to see a bit of a tapering of pricing and keep them from increasing at the rate they have been. This could also have an affect on the move up market as those who are wanting to sell their starter home and transition to something larger, more expensive, etc, they may have a harder time finding a buyer.

Please keep in mind that rates will differ from buyer to buyer depending on many different factors. If you would like a great lender to chat with, please reach out to your trusted Swope Investment Properties' agent and we'll get you connected. The information provided here is an overview of the market and each specific area has its own market factors like growth, job availability, home building rates and so on. For more specifics on your area, again please reach out to your trusted Swope agent. We're here to help anytime!

Paige Brown, Associate Broker

Swope Investment Properties