Real Estate Market Trends in Boise For 2020
The biggest beneficiary of the booming economy of Idaho is the real estate market in Boise. The market rates have appreciated in such a way that it has overtaken the national average and there is nothing stopping it in the coming year. The Boise real estate market is as robust and healthy as it can be. It is one of those investment opportunities in real estate that has the potential to become a prime choice in the near future.
Boise Real Estate Market Trends
Boise real estate is a great opportunity. It is a place where there is growing demand but carries little risk even when you buy at the top of the market as the prices are affordable. The real estate market has become a hot place for investment in the year 2020, as there are positive market trends that have boosted the investment. The core city has a population of 200,000 people with many suburbs, making it an ideal investment choice. The metro area includes Boise, Nampa, and Meridian and has a population of over 700,000. The supply and demand dynamics have worked in its favor and that has increased real estate demand by 4% in the last quarter of 2019. With an expected increase of close to 16% in the coming year, Boise becomes an apt investment choice in 2020.
The reason for the flourish in the market is due to the booming local economy. Unemployment is at its lowest and there are jobs for various skills and experience levels. That is giving a lot of confidence to buyers and with strong market fundamentals, the real estate market looks strong on all accounts.
Boise – A Fast-growing City
The city which is being deemed as the fastest growing city in the United States is seeing a shortage of inventory. That has caused the prices to go up with the home sales peaking. As the shortage became more acute last year, contract properties exceeded homes for sale. The same is expected to continue this year too with the Ada county market seeing a slight slowdown in home sales due to shortage of supply. The Nampa and Middleton are also tight on supply and sales of Canyon county markets continue to grow stronger.
The trend of fewer listings of homes available continues as the homes are getting sold fast due to the rise in population. In places like Ada and Canyon, the average days the homes were listed on the market were 23 days for Ada and 21 days for Canyon.
Due to an increase in demand and less supply, home rates are expected to reach new highs in 2020. The trend of Boise real estate being a seller’s market is going to continue this year too due to which the existing homes will be sold at a higher price. That will increase the median price and the market overall too.
People’s Home Preferences and its Market Impact in Boise
The most common housing units available in Boise right now are three and four-bedroom family homes. Other types of housing include the row houses, duplexes, apartments and homes converted to apartments. One or two-bedroom apartments sell like hot cake say experts from StewartRealtyLLC.com who further add that it’s the same case for single-family houses. Other homes including those in foreclosure are available. Currently, there are many houses for sale in Boise, ID and also for rent.
The single-family rental homes have seen a growth of 30% in the last few years. After the real estate collapsed in 2007, many people prefer single-family rental properties for investment. The owner can rent the houses quickly and also save on construction or refurbishment. The American trend of demand for single-family rental units is seen even in Boise, ID.
The real estate market in Ada County is expected to rise by 31% in the next 3 years with 6,000 single-family homes and 5,000 rental units under construction. Prices of homes in Canyon county is likely to rise by 33% in the coming years. About 4,000 new single-family homes and 3,000 new rental properties are expected to be available in 3 years. Bonneville County will see a slightly less appreciation of a 29% increase in home prices. Around 2,000 newly constructed single-family homes and around 1,500 new rental buildings are expected.
As per stats, the housing market is highly competitive in Boise with a median listing price of $410K. On average, Boise homes get at least 2 offers and they sell in about 21 days. Compared to the same time last year, the average price of a Boise home was $330K which is a rise of 16.2%. The average price per square is $201 which is an increase of 11.7% compared to last year. A property in a good neighborhood in Boise sells for the listing price and goes off the market in about 5 days. The same trend is likely to continue for the rest of the year, 2020.
Boise Real Estate Market Forecast
Boise real estate is growing in such a way that it is likely to continue to grow as the hottest market in the US. As per stats from leading realtors, the current median home price is $323,540 and Boise is seen as a seller’s market. That means there are more buyers and fewer homes for sale. The home price value has increased by 10.4% over the year and the forecast for 2020 is that it will increase by 6.2%. Boise housing market forecast for 3 years ending 2021 3rd quarter is a 78% rise in home values. If this is correct, the price of Boise homes will be higher in the 3rd quarter of 2021 than it was in 2018.
Boise is on par or surpassed some of the best cities in the US and so has its real estate market. There are very few markets that have kept pace with the real estate in Boise. If you are planning to invest in Boise, it is essential to know that there is a steady demand for homes which the local market is not able to cater to. In order to succeed it is necessary to get the right investment opportunity. If a wise investment is made in Boise it can secure your finances.
Thank you,
Glenda, Charlie and David Cates
