2017 Mid-Year Housing Summit Recap

Thanks to everyone who attended the 2017 Mid-Year Housing Summit from Boise Regional REALTORS®. If you missed the event, don’t worry! A summary of the discussions and links to the various presentations are available here.

Highlights from the Treasure Valley Policy Survey

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Dr. Justin Vaughn, Co-Director of the Center for Idaho History & Politics at Boise State University, presented the highlights from the most recent Treasure Valley Policy Survey, which gauged opinions and perceptions of Treasure Valley residents on a variety of topics, such as living and working in the Treasure Valley, economic development, taxes, education, transportation, and housing.


Justin Vaughn

The survey was conducted in September 2016, and the key findings were that residents view life in the Treasure Valley very positively, especially the quality of life, citing it as a good place to raise a family and build a career. The top reasons for living here included low crime, low cost of living, and a strong economy. The survey also found that there is concern about the pace of growth, and divided attitudes among Treasure Valley residents about how to fund affordable housing. For more details on the survey’s findings, download Dr. Vaughn’s presentation.

2017 Mid-Year Residential Real Estate Update

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Boise Regional REALTORS® CEO Breanna Vanstrom presented the market update.

Market Update

The Mid-Year Summit is an opportunity to take a step back halfway through the year to evaluate how the market has performed, compared to the same time last year. You can view the slides here, watch a video captured via Facebook Live, or read a summary of Breanna’s presentation below…

BRR Market Update presented by BRR CEO Breanna Vanstrom

Posted by Boise Regional Realtors on Thursday, July 20, 2017

Ada County homes sales are on track to surpass the $3 billion-mark for the first time in 2017. Year-to-date through June 2017, the total dollar volume sold was at $1.46 billion, which was 7.4% higher than the same time last year. The total dollar volume sold Canyon County year-to-date through June 2017, was at $ 417.1 million, which was 14.7% higher than through June of 2016.

BRR’s message to members has been consistent this year and last year: “Our housing market is growing from consumer demand vs. supply — not from speculation as was common a decade ago.” In addition, increased sales prices for newly constructed homes have also been pushing up the total dollar volume figures in 2017.

Three things continue to drive demand for housing in the Boise Region: increased economic development, limited housing supply putting pressure on inventory, and a growing population.

Yet while the actual median sales price continues to trend upwards, based on these factors, the rate at which it is increasing has been slowing down. Year-over-year price gains grew consistently through 2012, led by low mortgage rates and more sales at higher price points.

While the actual median sales price for both counties continues to trend upwards, the rate at which it does so has been more balanced since January 2015. It is important to explain that this slowdown in growth does not mean demand is waning. In fact, year-over-year demand is up, and in just the past few months, the number of pending sales have outpaced inventory.

How does this level of demand vs. supply, increasing (but leveling) prices affect affordability?

The National Association of REALTORS® (NAR) Housing Affordability Index (HAI), and an index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced existing home. The higher the number the more affordable homes are in comparison to the median income.

BRR replicated NAR’s formula using local data to calculate HAI for Ada County on an annual basis and compare it to NAR’s index for the country overall. In 2016, Ada County’s HAI was at 174.8, a decrease of 2.8% compared to 2015, but 4.5% higher than the U.S. overall.

Our market is still affordable when compared to the nation as well as the Western and Pacific Northwestern regions. Looking at NAR’s figures, based on metropolitan statistical areas (MSAs), the Boise City-Nampa MSA was more affordable than Salt Lake City, Denver, Portland, and Seattle, in 2016. For markets with similar populations, we were more affordable than Cape Coral, FL, Colorado Springs, CO, and Lakeland, FL, but less affordable than Winston-Salem, NC, Syracuse, NY, and Akron, OH.

Certainly, the local economies, demographics, and other factors of the markets cited affect affordability in each area, but the comparison is a helpful benchmark as Boise’s growing population is a driver of home prices relative to supply.

So what can REALTORS® do to help their clients in these current market conditions? Three things: strategic prospecting, strategic listing terms, and setting expectations.

REALTORS® can look to their prospects and databases to identify property owners who could sell but don’t also need to buy, or buy locally. For example, people relocating for retirement or work, investors looking to cash-out single-family properties; or, “default” landlords — people who retained a home after a move or another purchase because they couldn’t afford to sell it previously (either didn’t have the equity, needed a quick move, etc.) and have been holding that property as a rental.

To help prospective sellers nervous about listing their home and not being able to find a place to move, consider making the acceptance of a purchase offers contingent on the successful purchase of another home or completion of new construction, rent-back agreements, or maybe extended closing periods.

To help keep buyer and seller expectations in line with the market, here are a few tips:

  • REALTORS® can review market comps regularly, talking to sellers about price adjustments or changing terms, based on what has sold, to avoid buyer fatigue or disinterest if the home is on for “too long.”
  • Discuss the differences between offer prices and appraisals, and what to do when there’s a gap.
  • With home inspections, help sellers determine what should be fixed instead of moving on to another buyer who “might not ask them to fix” the repair in question. For buyers, if they ask for too many repairs or concessions, could they lose the house and have to start over?
  • Most importantly, know your market stats specific to your listings — it is not a seller’s market for everyone, so don’t over promise what you can deliver if you know days on market or supply of homes in a particular segment may not generate a quick sale or multiple offers.

Investing in Our Community Panel Discussion

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The last presentation of the summit was a panel discussion featuring Clark Krause, Executive Director of Boise Valley Economic Partnership (BVEP); Georgia Meacham, REALTOR® and housing advocate; Jeff Sayer, Managing Partner at Rectify Horizons; and moderator Chase Craig, REALTOR® and Vice Chair for BRR’s Data Strategies Advisory Group.

The topic of the panel was “Investing in Our Community,” and the discussion focused on developments happening in our region and around the state, as well as resources from the National Association of REALTORS®. The panelists talked housing affordability, innovative ideas for affordable housing, cost of living, quality of education, and wages. They also touched on factors businesses consider when looking to relocate or expand to the Boise region. Two recurring themes in the discussion were talent and infrastructure. We need to invest in, and attract capital for, building infrastructure and educating our workforce, both of which are needed as we continue to grow.

How does this all relate to BRR members? REALTORS® may sell homes, but they also change their communities. Georgia encouraged REALTORS® to get involved at the local, state, and national association level, to participate in the association’s community outreach efforts, and to invest in RPAC (the REALTOR® Political Action Committee) to protect homeownership and the real estate industry.


Event Photo Gallery

ACAR Installs 2016 President Carey Farmer; Shares Forthcoming Name Change


Carey Farmer 2016 President

Carey Farmer
2016 President

The Ada County Association of REALTORS® (ACAR) hosted its 2016 installation ceremony at Boise State University (BSU) on December 18, 2015. The event included a performance by the BSU Main Line Dancers — a tribute to the association’s 2016 President, REALTOR® Carey Farmer, who is a BSU alumna and former Main Line Dancer.

Farmer is an associate broker at Group One Real Estate and has been a REALTOR® for eight years. In addition to her service at ACAR, she is involved with the Junior League of Boise and the Boise Police Auxiliary.

“I couldn’t be more excited about the opportunities we have in 2016,” said Carey Farmer. “As President, I plan to focus on two areas — advocating for the value that REALTORS® bring to consumers, and educating members about the resources available through the association. The increase in data and technology that’s available to consumers, paired with the fast pace of our local market, makes REALTORS® more valuable than ever. They help people navigate the ever-changing process of buying and selling homes, and can personalize transactions to the needs of each buyer and seller. Similarly, the association helps members navigate the changes in the real estate industry, by offering tools, statistics, classes, and more, suited to the individual needs of their businesses.”

During the installation event, ACAR’s Chief Executive Officer, Breanna Vanstrom shared that the association will be changing its name to Boise Regional REALTORS® in 2016. The association was known as the Boise Realty Board from 1920-1964, then as the Boise Board of REALTORS® starting in 1964, and then as the Ada County Association of REALTORS® starting in 1990. Vanstrom had this to say about the new President and forthcoming name change:

“We have a long tradition of outstanding leadership at the association which will certainly continue with Carey. She is a successful REALTOR® who thoroughly understands the issues and opportunities facing our industry, and will use her insights and experiences to strategically guide our organization. This will be especially important as the organization changes its name to Boise Regional REALTORS® in early 2016. By re-introducing Boise into our name, we hope to support the efforts of groups BVEP and the Visitors Bureau, as they work to ‘brand’ our community in the minds of people across the country. But also, our members don’t just do business in Ada County, and we want our name to reflect the expanding area in which our members live and work.”

An official announcement and more details about the name change will be shared soon.

Other leaders who were sworn in to serve on behalf of the association include President-Elect Katrina Wehr of Silvercreek Realty Group, Vice President Gary Salisbury of Red Barn Real Estate, Treasurer Danielle Cullip of Silverhawk Realty, Immediate Past President Brenda Kolsen of Silverhawk Realty, two new Directors Krista Deacon of Silvercreek Realty Group and Jeffrey Wills of Amherst Madison Legacy, and five new State Directors Becky Enrico-Crum of Andy Enrico & Company, Shirley Koch of Coldwell Banker Tomlinson Group, Carolyn Sinnard of Happy Dog Realty, Susan Weaver of Group One Real Estate, and Greg Winther of Silvercreek Realty Group.

They will work alongside the association’s continuing Directors Michelle Bailey of Keller Williams Realty Boise, Jared Cozby of Front Street Brokers, Dianne Hough of Group One, and Bob Van Allen of Coldwell Banker Tomlinson Group, and continuing State Directors Chase Craig of Keller Williams Realty Boise, Phil Mount of Front Street Brokers, Gary Salisbury of Red Barn Real Estate, and Katrina Wehr of Silvercreek Realty Group. The associations is also represented on the National Association of REALTORS® Board of Directors by Kit Fitzgerald of Red Barn Real Estate, whose term goes through 2016.

View Photo Gallery

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The Ada County Association of REALTORS® (ACAR) represents more than 3,600 real estate professionals throughout the Boise region, providing resources to help members conduct their businesses professionally, ethically, and successfully. For more information, visit www.myacar.com.

Idaho Real Estate Summit 2015

The second Idaho Real Estate Summit hosted by the Ada County Association of REALTORS® was held yesterday, December 10th at  the Idaho Capitol. Topics included current housing trends and a look at our economy. Professionals from all segments of the housing industry will benefit from attending the Housing Summit.

Our Keynote speaker was Lawrence Yun the Chief Economist and Senior Vice President of Research at the NATIONAL ASSOCIATION OF REALTORS®. He will deliver insight into the National Housing Economy and a forecast for 2015. If you weren’t able to join us download the presentation here http://www.slideshare.net/AdaRealtors/idaho-real-estate-summit

Speakers covered topics including:

  • Local Residential Housing – Marc Lebowitz
  • Commercial Market – LeAnn Hume
  • IHFA Lending in Ada County – Gerald Hunter

“Lawrence Yun is Chief Economist and Senior Vice President of Research at the NATIONAL ASSOCIATION OF REALTORS®.  He oversees and is responsible for a wide range of research activity for the association including NAR’s Existing Home Sales statistics, Affordability Index, and Home Buyers and Sellers Profile Report.  He regularly provides commentary on real estate market trends for its 1 million REALTOR® members.Lawrence Yun is Chief Economist and Senior Vice President of Research at the NATIONAL ASSOCIATION OF REALTORS®.  He oversees and is responsible for a wide range of research activity for the association including NAR’s Existing Home Sales statistics, Affordability Index, and Home Buyers and Sellers Profile Report.  He regularly provides commentary on real estate market trends for its 1 million REALTOR® members.Dr. Yun creates NAR’s forecasts and participates in many economic forecasting panels, among them Blue Chip and the Harvard University Industrial Economist Council. He appears regularly on financial news outlets, is a frequent speaker at real estate conferences throughout the United States, and has testified before Congress. USA Today in 2008 listed him among the top 10 economic forecasters in the country and he has been named among the Most Influential Real Estate Leaders by INMAN News over the past several years.Dr. Yun received his undergraduate degree from Purdue University and earned his Ph.D. from the University of Maryland at College Park.”