February 2018 Market Report

ADA COUNTY HOME PRICES HIT RECORD HIGH
AS INVENTORY DROPS TO RECORD LOW

Boise being named one of the fastest growing cities has certainly brought a lot of additional attention to our region lately, but our market reports have been reflecting that growth for months, most evident through buyer demand vs. supply and its impact on home prices.

In February 2018, inventory was down 18.8% from the previous year, with a record low of 1,205 homes available for purchase, compared to 1,513 homes that were under contract, up 16.1% year-over-year. The result was a new high median sales price for Ada County of $297,500, up 16.7% over the same month last year.

In February 2018, inventory was down 18.8% from the previous year, with a record low of 1,205 homes… Click To Tweet

The continual tightening of inventory is a concern, but we’re hearing from some local builders than more homes will be coming this year. New construction homes are more likely to be built in the southern and western parts of Ada County, with Canyon County seeing much of the new development.

In fact, there were 314 new homes for sale in Canyon County in February 2018 versus the 226 in Ada County. This put months supply of new construction inventory in Canyon County at 5.2 months, a balanced level compared to buyer demand — including an encouraging uptick in new supply priced at or below $300,000. Ada County’s months supply of new homes wasn’t quite as abundant at 3.3 months in February.

Those looking to buy this spring should be prepared to make quick decisions and strong offers to be competitive and work with their REALTOR® to stay on top of everything that’s needed to get to the closing table.

An article from REALTOR® Magazine also provides tips for prospective buyers to discuss with their REALTOR® when writing their offers and negotiating terms:

  1. Discuss the contingencies you’re willing to waive ahead of time. If you find yourself in a multiple-offer situation, any concessions you’re willing and able to make regarding inspection results and repairs or being flexible on the closing date may put you in a stronger position than other buyers.
  1. Consider offering a rent-back agreement. Sellers who plan to purchase another home are also going to have a difficult a time finding a place in this tight-inventory environment. Offering sellers the option to rent back their home after closing so they can stay longer while they look for another home could make your offer stand out. This may not be an option for everyone, but if so, be sure you are totally comfortable with the arrangement and ask your REALTOR® to explain every term in the agreement to avoid any confusion.
  1. Be financially prepared beyond the mortgage preapproval letter. If you have any credit issues, clear them up early and be sure you have the funds necessary to close. If there is anything that could stall a transaction upfront or at closing, consider working with a credit counselor or other professional to remove all obstacles before you start looking for a home.

 

MORE GEM COUNTY HOMES UNDER CONTRACT THAN A YEAR AGO

In February 2018, there were 47 homes under contract in Gem County, up 17.5% from February 2017. That left 44 homes available for sale at the end of February, down 2.2% from the same month last year.

Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 2.1 months in February 2018.

A balanced market—not favoring buyers or sellers—is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.

Because buyer demand is outpacing supply, as shown through the low MSI calculation, home prices are rising in Gem County. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price, to get a better idea of the overall trends.

Based on data between March 2017 and February 2018, the median sales price for Gem County was $185,975, an increase of 10.6% over the same period last year.

Read our follow up to the 2018 February Market Report here.

Additional information about trends within the Boise region, by price point, by existing and new construction, and by neighborhood, are now available in the February 2018 Ada CountyCanyon County, and Gem County and City Data Market Reports. This includes an explanation of the metrics and notes on data sources and methodology.

Download the latest market snapshot graphics for Ada CountyCanyon County, and Gem County:

ADA Snapshot - February 18CANYON Snapshot - February 18 GEM Snapshot - February 18

Download print quality snapshot graphics for Ada CountyCanyon County, and Gem County.

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This report is provided by Boise Regional REALTORS® (BRR), a 501(c)6 trade association, representing more than 4,400 real estate professionals throughout the Boise Region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.

The data reported is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.

The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings).

For areas with fewer total transactions, the sales price reported is based on a rolling 12-month median. This smooths out potential month-over-month swings due to seasonality, very high or low sales prices that may occur one month but are not common, or other activity that may not be representative of the overall price trends for the area or market segment.

If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

Earn your SRS Designation and Other Certifications at BRR!

SRS

You can earn your Seller Representative Specialist Designation at BRR in 2018! Simply register and attend the SRS Designation course, then register and attend one of two offered electives: Pricing Strategies: Mastering the CMA Certification (PSA), or the Real Estate Negotiation Expert Certification (RENE). Talk about being efficient with your time, both of these classes count toward separate certifications!

Learn more about the upcoming SRS class from Instructor Rick Harris!

Other electives include the ABR course, e-PRO Certification, and GRI courses.

After you’ve finished your coursework, you need to submit 5 completed transactions in which you acted solely as the seller representative, submit the application, and pay a yearly membership fee for the designation.

Have questions? Contact Angela Gibson, BRR’s Director of Membership & Education.

 

2018 REALTOR® Awards Gala

 

2017 Gala Slider

Congratulations to our award winners and top producers!

2018 Awards Ad IS

Download the PDF version here.

BRR Honor Society members are also recognized at the Gala. To learn more about the Honor Society and to apply, visit our Honor Society page.

EVENT PHOTO GALLERY


2018 Thank you Gala sponsors shareable graphic

59 Minute Meeting Recap: Future Economic Growth of the Boise Region

February 59 Minute Meeting Recap Slider

We had a full crowd on hand for our first 59 Minute Meeting of 2018! Thanks to all those who showed up and participated in our discussion focused on future economic growth in the Boise Region. Our panel of speakers included Cameron Arial, Director of Meridian Community Development; Clark Krause, Executive Director of Boise Valley Economic Partnership (BVEP); and Bobbi-Jo Meuleman, Director Idaho Department of Commerce.

Each speaker touched on the economic growth forecast from their own unique perspective and highlighted the challenges that come along with it. They also discussed the recent announcement by the US Census Bureau that declared Idaho as the fastest-growing state in the union and how that plays into the overall economic picture.

Not only is the economy in the Boise Region booming, wage increases are following suit. All industries have shown a 13% jump in wage growth during the period of 2010 – 2016 with average salaries jumping from $38k to $43k a year.

The Q & A portion of the meeting focused on growth and the underlying factors behind it. Our speakers made it clear that if residents want a voice in how the Boise Region continues to grow, they need to become more engaged in city council and planning meetings. All meeting information is publicly available on city websites throughout Ada and Gem County.

REALTOR® advocacy will continue to play a vital role in planning as the Boise Region continues to grow with economic opportunity. Click here to learn how RPAC works to elect REALTOR® champions who embrace smart growth principals, private property rights, and thoughtful community development strategies.

Thank you again for joining us, and be on the lookout for information regarding our next 59 Minute Meeting in the near future!

Region 12 Meeting Report

The National Association of REALTORS® organizes the state REALTOR® associations into 13 regions, to provide more localized access to national programs and issues. Idaho (and therefore, Boise Regional REALTORS®) is part of Region 12 along with Alaska, Montana, Oregon, and Washington.

As your national directors from BRR, we attended the recent 2018 Region 12 Meetings, along with our Chief Executive Officer, Breanna Vanstrom, and wanted to share our top takeaways, plus links to some great tools and resources…

Fair Housing

2018 marks the 50th Anniversary of the Fair Housing Act. We were shocked to find out that in 1968 when it was enacted, NAR did not support it. Now 50 years later, NAR is working to rectify that position, partnering with the Asian Real Estate Association of American (AREAA), the National Association of Gay and Lesbian Real Estate Professionals (NAGLREP), the National Association of Hispanic Real Estate Professionals (NAHREP), the National Association of Real Estate Brokers (NAREB), and the Women’s Council of REALTORS® (WCR), to ensure members understand the importance of this act back then and today. As we commemorate 50 years, we need to also recognize that in this ever-changing world, there’s still work to be done. BRR will be providing a suite of local programs and events, kicking off in April, to give you ideas for ensuring fair housing practices are a part of your business… but in the meantime, visit NAR’s Fair Housing resource online to learn more. — Carey Farmer, NAR Director from BRR and broker associate with Group One Sotheby’s International Realty

 

Leadership Resources

While many know of the opportunities at BRR, it can seem as though NAR volunteerism is out of reach… but I’m here to tell you it is not. So how do you get involved with NAR? First, learn what committees are available and identify those that best suit your skills and experience. Then, update your expertise profile (login required) and absolutely include your professional headshot or upload a video. We heard from NAR’s First Vice President, Vince Malta, that as they get ready to help appoint members to committees, having a face to put with a name and profile is crucial. And finally, introduce yourself to members already involved at the national level! In person, over email, or by phone, asking them for advice on where to start, how to learn more about your interest areas, and even get tips on filling out your expertise profile. Here’s a link (login required) to the current national appointments from Idaho. — Gail, NAR Director and REALTOR® with Keller Williams Realty Boise

 

Other tips, resources, and other ideas gleaned from the Region 12 Meetings:

  • Wire fraud continues to be a major issue nationwide. While some language has been added to Idaho real estate contracts and a fraud notice was created, consider adding a notice to your email signature. NAR provides a wealth of resources and videos you can explore on their website, just search “wire fraud” for links and information.
  • You may have used Realtors Property Resource® (RPR) through IMLS, but have you used the RPR mobile app? It offers a Comparative Analysis on the Go, Investment Analysis on the Go, traffic zone reports for buyers, and a very handy home improvement tool.
  • Are you an RPAC Investor? If so, talk about it in your listing presentations and buyer consults. It’s a powerful message that you not only help people buy and sell, but you also fight hard to preserve the American dream of homeownership. (If not, talk to Soren or Cameron today!)
  • Don’t let tech get in the way of building real relationships with your clients and colleagues. An email drip campaign is great but taking time to call a past client to just check-in, or to stop by for a visit… not just to ask for a referral. (Oh… and stop asking for referrals. Instead, ask your clients to recommend you to others.) Showing clients that you are a long-term resource is essential to maintaining our relevance and value, especially as technology continues to chip away at pieces of the transaction.
  • Millennials and those in Gen Z want to work with professionals and companies that not only do great work but also, that do good in the community. Highlight the ways you give back through your business to connect with younger buyers and sellers.

Interested in attending future Region 12 meetings or other NAR conferences? Take a look at the events calendar and save the dates. Questions about the resources or ideas shared, please let us know.

Thanks!

Carey Farmer and Gail Hartnett

Nine BRR Members Inducted into National Emeritus Society

Boise Regional REALTORS® (BRR) is proud to recognize nine of its members who have been inducted into the National Association of REALTORS® Emeritus Society: Randy Andrews, Coldwell Banker Tomlinson Group; Lynn Boyd, Silvercreek Realty Group; Andy Enrico, Andy Enrico & Company; Paul Hudson, Coldwell Banker Tomlinson Group; Donna Jacobsen, Silvercreek Realty Group; Robert Kiah, Live Oak Real Estate; Janis Ogawa; Coldwell Banker Tomlinson Group; Horace Smith, HMS Realty; Charles Weymouth; Group One Sotheby’s International Realty.

Each inductee has served our community and the real estate industry as a REALTOR® for 40+ years. The newest inductees were honored at the BRR Past President’s Breakfast on February 1, 2018.

They join the ranks of current BRR Emeriti members: Bart Ballantyne, Ballantyne Real Estate; Patti Bowman, Group One Sotheby’s International Realty; Maurice Clifton, PowerHaus Real Estate Service, Patricia Drilling, Keller Williams Realty Boise; Mary-Edith Hill, Hill Real Estate Agency; Lee Hill, Group One Sotheby’s International Realty; Phil Hoover, Phil Hoover, Inc.; Ilene Johnson, ERA West Wind Real Estate; and Judy Weed, Judy Weed Real Estate.

Left to Right: Robert Kiah, Andy Enrico, Charles Weymouth, and Randy Andrews. Not pictured: Lynn Boyd, Paul Hudson, Donna Jacobsen, Janis Ogawa, and Horace Smith.

Left to Right: Robert Kiah, Andy Enrico, Charles Weymouth, and Randy Andrews. Not pictured: Lynn Boyd, Paul Hudson, Donna Jacobsen, Janis Ogawa, and Horace Smith.

View the event photo gallery.

BRR Supports Emmett and West Ada School Bonds and Levies

BRR Supports Local Schools graphicBoise Regional REALTORS® (BRR) has endorsed the Emmett Independent School District’s $20.4 million bond measure, as well as West Ada School District’s $95 million bond and two-year supplemental levy of $14 million.

“REALTORS® don’t just help you buy and sell your home — we actively work to build strong neighborhoods and cities, and an integral part of that is supporting our children’s educational needs as our communities grow,” said Gary Salisbury, 2018 President of Boise Regional REALTORS® and senior sales consultant with Equity Northwest Real Estate. “We have a history of supporting our local school initiatives and we’re proud to stand with families and other local leaders in support of properly funding schools.”

Salisbury added: “The Boise Regional REALTORS® enthusiastically endorse the Emmett Independent and West Ada School Districts in their upcoming bond and levy initiatives and encourage our members and the public to vote ‘Yes’ on March 13th.”

“The Emmett Independent School District bond would fund necessary remodels and repairs to a number of our schools without raising taxes,” added John Evans, BRR Director and associate broker/co-owner of Evans Realty, LLC. “Our community provided valuable input for this bond proposal and is invested in our kids’ education. We feel like this is a win-win, and hope that the bond will pass without difficulty.”

“My kids attend West Ada schools, as do the kids of many of my clients,” said Carey Farmer, Past President of BRR and associate broker with Group One Sotheby’s International Realty. “With four of five West Ada high schools currently at or above capacity, we must pass this bond to continue providing quality educational opportunities and accommodate future growth.”

Additional information on these bond and levy initiatives can be found by visiting www.emmettschools.org/domain/536 and www.westada.org/Page/52751.

Questions or comments may be directed to Soren Dorius, Director of Government Affairs for Boise Regional REALTORS®, at soren@boirealtors.com or 208-947-7237.

 

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Boise Regional REALTORS® (BRR), a 501(c)6 trade association, represents more than 4,400 real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, the Intermountain MLS (IMLS) and the REALTORS® Community Foundation. Visit boirealtors.com, intermountainmls.com, and brrfoundation.org for more information.

 

2017 Residential Real Estate Market Report

Slide1

For the past few months (and years), we’ve been focusing on the causes and effects of low inventory in our local housing market… and for good reason.

December 2017 marked 39 consecutive months of year-over-year declines in the number of existing homes for sale in Ada County, going back to October 2014.

Metrics Ada Existing
Oct-14 Dec-17 % Change
Inventory (Supply) 1,702 537 -68.4%
Closed Sales (Demand) 542 588 +8.5%%
Months Supply of Inventory 3.2 0.9 -71.8%

 

Inventory of existing homes in Ada County was at 1,702 in October 2014 and at a record-low 537 in December 2017, a decrease of 68.4%. In comparison, there were 542 closed sales in October 2014 versus 588 in December 2017, a modest increase of 8.5%.

Looking at months supply of existing inventory — which takes the number of homes for sale divided by the average number of sales by month — there were 3.2 months in October 2014 in Ada County compared to less than one month in December 2017, a drop of 71.8%. (A balanced market — not favoring buyers or sellers — is typically between 4-6 months supply of inventory.)

Our past reports have looked at why there’s so much demand for housing — growing population due to economic opportunities, out-of-state buyers moving in, and Millennials (a huge population group) “aging into” homeownership — but what’s been more difficult, is understanding the supply side pressures and why homeowners aren’t selling when the market is seemingly in their favor.

Digging deeper into the data for existing inventory, we noticed that just as Ada County’s existing inventory had been declining for the past 39 months, so had existing inventory in Canyon County and Gem County.

So, what happened in October 2014 — or leading up to it — that has homeowners throughout the Boise region staying put?

We’ve identified three potential data-driven explanations — Retirees, Boomerang Buyers, and Housing Affordability — and another more psychological explanation — a feeling of opportunity, whether it be an opportunity to be part of the growth the Boise region is experiencing, or the opportunity to wait and sell when we reach a new market peak. Let’s take a closer look at each of these.


Retirees

Our region’s population is growing, and as shared in previous reports, it’s one of the main reasons demand for housing has increased. But if we look at population by age, the share of our population that has grown the most is adults between 55-74 years old, based on U.S. Census data available starting in 2009:

County 16 to 19
Years Old
20 to 24
Years Old
25 to 44
Years Old
45 to 54
Years Old
55 to 64
Years Old
65 to 74
Years Old
75 Years
Old +
Ada 2.5% 1.3% 0.8% 1.3% 4.7% 8.0% 3.1%
Canyon 2.4% 1.9% 0.8% 1.9% 4.3% 7.1% 1.9%
Gem 1.3% -0.5% -1.1% -0.6% 2.8% 5.1% 1.5%

 

These percentages reflect current residents from the Baby Boomer generation who are nearing retirement and aging into these categories. But they also support what we hear anecdotally from REALTORS® who have clients moving here from out of state to retire, or, are planning to retire in the next few years and purchasing a retirement home here now.

This makes sense as Boise and Meridian, in particular, have been named as best places to live, to retire, to do pretty much anything, mostly because the region boasts many of the amenities today’s retirees are looking for… college town, culture, great downtown, affordability, and access to quality healthcare.

When people purchase retirement homes, they buy with the plan to stay, and those who move into our area to retire don’t typically have another home to sell here. These two factors further constrict the inventory of homes for sale in the existing/resale segment.


Boomerang Buyers

More than 50% of the homes sold in Ada County in 2010 and 2011 were distressed in some way (foreclosure, short sale, bank-owned, or HUD owned). That number fell to 30.8% in 2012 and dropped to 14.1% in 2013. In contrast, the share of distressed home sales was just 1.2% in 2017.

Slide11

For those homeowners who lost their home during the Great Recession, it would take a few years to rebuild the credit and financial resources necessary to buy again. 2013 and 2014 is when we started to see “boomerang buyers” — referring to people who lost homes to foreclosures or short sales — “coming back” to the market. Boomerang buyers purchase homes from available inventory, but would not have an existing house to sell, further constricting existing inventory levels.

Additionally, once back into a home, it’s unlikely these boomerang buyers would look to sell again soon after, due to the enormous emotional toll a foreclosure or short sale can take on a family. And for some, the run-up in local home prices could feel like history repeating, so they may prefer to stay in place than risk moving up to another potentially unaffordable mortgage.

Related to this… many of the homes lost to foreclosures and short sales in 2010 and 2011 were picked up by investors who often turned them into rental properties that they’ve held on to ever since. And why not? The average monthly rent for a single-family home in Ada County grew 41.3% between 2012 and 2017, an increase of nearly $406 per month, according to analysis of data from the Southwest Idaho Chapter of the National Association of Residential Property Managers. These rentals represent thousands of homes that potentially would have been listed (and then counted as existing inventory) had the Great Recession never occurred.

Housing Affordability

Those who purchased a home at the previous high mark in 2006, saw their equity fall 45-56% through 2011. By 2014, prices were recovering, but most were still 15-26% below peak prices.

During that time, many would-be sellers didn’t have the equity to sell and move up, keeping them in place and holding back existing/resale inventory. Comparing 2006 to today’s median sales prices, homeowners are just now seeing prices 7-13% higher after more than a decade of recovery.

In contrast, those who purchased at the bottom of the market in 2011, have seen home prices grow 108-158% throughout the region. On the sell side, they likely have equity to roll into a new home, and those who can move up in price point or purchase new construction may be pleasantly surprised at the inventory available.

However, today’s prices could be out of reach for some, especially when compared to income changes over the same period. Between 2011 and 2017, the median family income for Ada County was up 7.2% but fell 4.5% for Canyon County and 8.9% for Gem County.

Looking more closely at Ada County, the following chart shows a decline in affordability, based on the median price of existing homes, 30-year fixed mortgage rates, and median family incomes, combined to form a Housing Affordability Index rating (also referred to as “HAI”):

Slide14

That said, our market is affordable when compared to the U.S. overall, and to nearby higher priced markets — which is where much of our population growth is coming from. To new residents, prices for new or existing homes seem quite reasonable.

Slide15

Yet while the actual median sales price continues trending upwards — putting major pressure on affordability — the rate at which it does so has been slowing down. Think of it like driving your car up a hill: as the road gets steeper, the speed at which you drive decreases. You’re still gaining ground, just not as quickly.

Slide17

Year-over-year price gains began falling in mid-2006 through the end of 2009, with fluctuations through 2011. Year-over-year price gains grew consistently through 2012, led by low mortgage rates and more sales at higher price points.

Slowing price increases could be an early indicator of the market coming back into balance, but as long as consumer demand outpaces the number of homes for sale, that low supply vs. high demand relationship should keep actual prices moving up.

Opportunity to be part of the Growth… or to Cash Out

As noted with retirees, people are finding out what a great place the Boise region is, and they want to be here. The “Second Annual Treasure Valley Survey” from Boise State University indicated that current residents enjoy the quality of life, thriving economy, and neighborhood safety. There is growing excitement and interest in the area, and perhaps people don’t want to miss out by leaving.

So, what’s generated all this buzz about our region and Boise in particular?

According to this Marketplace article from February 2013, Boise’s growth was being driven by “a diversified economy fueled by low-interest rates, high technology, and local talent.”

This Washington Times article from March 2014, further points out, that as the Boise Centre made plans for expansion, hoteliers took notice and made their own plans to build. We’ve seen the results of that with many hotels opening in 2017, including three just in downtown Boise, The Inn at 500 Capitol, Hyatt Place, and Residence Inn. In addition, plans were being made for Simplot’s new downtown headquarters, renovations were underway on The Owyhee, and a remodel of the Riverside Hotel was in the works.

2014 was also when a very visible improvement happened in downtown Boise: “The Pit” was finally filled in. After sitting vacant for more than 25 years, 8th and Main was completed, bringing with it businesses, energy, and excitement.

And what about all of those “top ten” lists that highlight Boise, Meridian, and Idaho? Does that national attention have an impact on our growth? According to Clark Krause, Executive Director of the Boise Valley Economic Partnership (BVEP), it absolutely does: “We win and lose by rankings.”

Clearly, the growth we’ve seen since 2014 — when we began seeing year-over-year declines in existing inventory — not only encouraged people to move here but for those who already lived here, to stay and be part of the opportunities being created, seemingly, every day.

On the other hand, when any market is on an upward swing, there’s a natural inclination to want to “time the market” and cash out near the peak. We’ve heard from some REALTORS® that they have would-be sellers, both homeowners and investors, that are holding on to their properties see just how far prices may climb before listing.

A recent (and very informal) poll of Boise Regional REALTORS®’ Board of Directors found that the primary reasons their clients listed a property were reactionary, done because of a work transfer, change in family circumstances, or investors selling residential properties to free up cash for land or commercial purchases. In contrast, the top reasons their clients bought a home were all “because they wanted to.” Out-of-state buyers moving for lifestyle reasons or to purchase a retirement home (supporting the research on retirees), or, moving to Idaho to be near family.

The combined impact of boomerang buyers coming back, investors and retirees purchasing and holding properties, affordability keeping people in place, as well as the potential opportunities that come from recent growth, seem to be primary reasons we are experiencing historically low levels of existing inventory.

These may also be some of the reasons behind the low inventory nationally. The National Association of REALTORS® (NAR) reports that today, people are staying in their homes for a median of 10 years versus a 6-year median in 2012. It’s difficult to free up existing inventory, particularly entry-level properties, when homeowners aren’t moving — whatever their reason.

The excitement over these opportunities may be held in check by the “cautious optimism” sentiment we’ve been hearing about our market throughout the recovery and into 2018. It appears people aren’t going to let themselves get too comfortable or overconfident just in case the market shifts.

That said, many economic and demographic factors seem to be working in our favor — specifically record high sales volume and low unemployment — leading to confidence from out-of-state investors that some predict will go on for the next few years.

In early 2017, the Idaho Statesman reported that Idaho led the country in job growth and one of the lowest unemployment rates. Based on the most recent stats from the U.S. Bureau of Labor Statistics, as of November 2017, Idaho had just 2.9% unemployment, Ada County was at 2.8% (down 17.6% from November 2016), Canyon was at 3.3% (down 19.5% year-over-year), and Gem County was at 3.5% unemployment (down 16.7% year-over-year).

Then in November 2017, Ada County home sales surpassed the $3 billion-mark for the first time. The year ended with each county experiencing record high sold volume — Ada County’s 2017 sold volume was $3.3 billion, Canyon County reached $944.6 million, and Gem County ended the year at $66.5 million.

What are economists predicting for 2018?

For the U.S. overall, REALTOR.com expects continued price growth, persistence inventory shortages, and increasing mortgage interest rates. An article from Forbes.com echoed much of the same, but in addition, predicted that in more costly markets, renting may become much more affordable than buying.

Locally, purchasing may still be better, but it all depends on location, income, and housing needs. Looking at Ada County, for example, the average monthly rent for a single-family home in Ada County last year was $1,170, based on data from the Southwest Idaho Chapter of the National Association of Residential Property Managers.

In comparison, a monthly mortgage payment (principal and interest only) for an existing home at the median price in Ada County would be approximately $900 per month. This is based on BRR’s housing affordability index calculations, using data as of December 2017.

The major unknown is how the new tax reform will truly impact the economy, and in turn, the housing market. The National Association of REALTORS® has put out a guide for homeowners’ reference, and we’ll continue to watch and report on its effect on our local economy throughout the year.

Want more stats? Have questions?

Visit boirealtors.com for our market reports, released monthly on or after the 12th calendar day. Contact Boise Regional REALTORS® Chief Executive Officer, Breanna Vanstrom, at 208-947-7228 or breanna@boirealtors.com for assistance with these stats or any other association program. Visit our website to learn more about our data sources, methodology, and how to properly cite this data.

Here is a printable, shareable infographic summarizing the 2017  Residential Real Estate Market Report.

2017 Residential Real Estate Market Report Infographic

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This report is provided by Boise Regional REALTORS® (BRR), a 501(c)6 trade association, representing more than 4,400 real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.

The data reported is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance.

The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings).

If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.

Don’t let BRR’s Facebook Posts Disappear from Your News Feed!

Facebook is about to get more personal by making changes to what you see in your news feed (again). Their goal is for users to see more from their friends and families, and less from businesses, news, etc. This should be great for interactions in personal relationships, but you’ll likely miss most, if not all, of BRR’s posts, which include local market stats, association events and news, industry trends, local news stories, etc.  Plus, we consider you our friend, even if Facebook doesn’t see it that way.

See FirstIf you’d like to continue to see BRR’s posts, visit our Facebook page, and make sure you’ve “liked” us. Then, next to the “Like” button, click the “Following” button, and select “See First” to be sure you don’t miss a post.

If you’d like to learn more about how these changes may affect your business page, check out this article from Inman, What the Facebook news feed change means for real estate pros.

Thank you for following us, and if you have any feedback on what we share on social media please contact BRR Director of Communications Cassie Zimmerman at cassie@boirealtors.com.

Conference on Housing and Economic Development

This post contains sponsored content and affiliate links.

1.16.18 IHFA

 

Registration is open for this can’t miss event on March 5-6! The conference brings the power of face-to-face connection to life when you join hundreds of housing and economic development industry professionals. Participating in this conference gives you unlimited access to resources, tools, solutions, and – most importantly – connections. Don’t miss this amazing event!

Register today!

Can’t make the entire conference? Don’t be left out!  Even if you only have a morning or lunch to spare, you can still hear up to three world-class keynote speakers. It won’t just be facts and figures – our lineup will paint a vivid picture of the current and next trends in housing, economics, cities, and technology that will have you thinking differently. Learn about the keynotes and reserve your spot today!

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Brought to you by the Idaho Housing and Finance Association.