Hello BRR Members,
You may have seen a recent KTVB story about the real estate market. We were happy that they reached out to us for a take on the stats, as we want to be sure we’re helping you tell the story of the market with facts and data.
However, we know they can’t fit everything into a short segment so wanted to provide you with our full talking points and context around some of the quotes used in the story, for your reference and to share with your clients.
- Based on data back to 2004, we do see inventory at its lowest point with prices at their highest. It’s a function of supply and demand, as we have more people staying in their homes longer with more people move into the area.
- The most recent market data reflects the start of the spring market and combines existing and new construction together. The median sales price of existing homes is nearly 35% lower than that of new construction.
- The full context of the quote, “Boise is still a more affordable,” was that Boise is still a more affordable market when compared to nearby higher priced areas, but we are watching prices, wages, and mortgage interest rates to provide local leaders with the information they need to make decisions about how our community will grow.
- While prices are growing, we do see the rate at which they are growing has been slowing down for the past few years. As mortgage interest rates rise, a more even pace of growth should continue.
- “Inventory will be something that buyers will have to work through with their REALTORS® to identify the options they do have.” We know there is a lack of inventory especially at the lower price points, but there are still options available.
- When asked about the perception that the quality or condition of homes under $250,000 were mostly rehabs or needed a lot of work, we shared that “buyers shouldn’t think they’re going to have to sacrifice too much or do a lot of work” just because they are buying in the lower price points. There are well-maintained homes in all areas and all price points.
- There are homes in both existing and new construction in all prices points, but lower priced new construction is more likely going to be found in western Ada County or in Canyon County, where new developments are coming online.
- One positive effect of this market for homeowners is the growth in equity they’ve seen over the past few years. For those who do want to move, they may be able to move up in price point or into new construction or have equity to make improvements on their home to make it more suitable to their needs if they are not interested in selling.
We hope this information is helpful for you. If you have questions or need more, please don’t hesitate to let us know.
BRR is committed to fostering conversation around housing affordability and growth, and what’s needed for our communities. We’ve been encouraged by the discussions we’ve been a part of with related industry groups of developers, builders, and mortgage lenders; local governments, transportation agencies, and economic development groups; and, engaged neighborhood associations and residents who want to preserve our quality of life. BRR will continue to monitor the local real estate market and provide market research in order to inform our members, decision makers, and the public. We will also continue our advocacy efforts in supporting local initiatives that enhance the value, safety, and livability of our region.
If you’d like to be part of the growth and affordability discussion or have ideas on what you’d like to see BRR doing on behalf of you and your clients, please reach out to me directly.
Sincerely,
Breanna Vanstrom MBA, RCE
Chief Executive Officer
Boise Regional REALTORS®
