I have concerns…
As good as everything looks there are some issues brewing.
Boise real estate market update:
The word is out. Boise is on the map. People keep moving here. Prices are up. Supply is down. All is good…. Or is it? Let’s take a closer look to see what is going on.
7 years of prices rebounding
9 years of sales growth
10 years of market strengthening.
All things look great! Right?
Concern #1: Affordability Threats
All things do look great until you look at affordability.
Idaho miraculously edged out the top spot nationally on the highest gain in wages year over year, at 5.3% Which was great news, but not enough to keep up with the improving real estate market.
But the latest numbers show affordability having a serious impact on our market.
In addition to price increases we now have mortgage rate hikes.
The FED has artificially kept interest rates down for years by buying mortgage-backed securities.
Most investors want to make more than 3-4%, hence rates are likely to increase to 5-6% in the near future, which has a significant impact on affordability, as the amount of home a buyer can afford decreases significantly.
Concern #2: Inventory Crisis
Have a closer look at the inventory of homes. It’s 25% lower than last year. And last year was really low. When inventory gets really low, prices will increase, often too fast as buyers get desperate. Again further negatively impacting affordability.
Homeowners have equity again and are tempted to sell, but the lack of affordable alternatives and higher rates are giving them pause, which further worsens the inventory crisis.
These concerns are typical for any growing city. You really can’t have growth without experiencing some growing pains.
MY ADVICE for homeowners.
Now may not be the best time to move. Why? It’s hard. There isn’t much out there to choose from.
It may be best for you to just stay where you are and focus on paying off your mortgage. That’s my goal. Of course, my wife and I only got excited about staying in our home another 10 years after we did a significant remodel.
I have a Loan Officer that specializes in Remodel loans, which may be a great option for you, so reach out if you want a referral to explore that option.
You likely have equity in your home. It’s important to know how much equity before making decisions. Don’t rely on sites like Zillow. They can really be off.
If you do decide to capitalize on today’s hot market before it cools off, whether it’s downsizing or upgrading, I can help you determine what is maximum you home could sell for today and I’ve got some cool strategies that can help you not only secure a great home but often help you move in with built in equity. Secret ninja moves, well sort of ninja. Just ask me about it.
Just give me a call or shoot me an email.
Check out the Video update:
Until next time, have an awesome day.