For those of you in the market to buy a home in the Boise area or surrounding Treasure Valley, I am sure you have the same question as most do right now. That is, "So, when do you think people are going to start listing?"
With inventory so low, we remain thankful for the accompanying low interest rates and keep our fingers crossed that the arrival of Spring will change things up and bump up our home inventory. At the end of December, Ada County had just 333 houses on the market which is down 80% from last year!
Now, we cannot overlook the median home price which is currently up 24% to $435,000. This, for many homeowners, is a dream price for their home. The problem is, where are they going to go? This conundrum leads to homeowners sitting on their properties, thus the low inventory. The good news is that this 24% increase in home price is not sustainable year over year as we are already running into affordability issues, even with the low interest rates we currently enjoy.
In December, we saw a 4% decrease in home sales simply due to low inventory. There is no question, the buyers are there, they just cannot buy if there is no inventory. Homes listed are currently receiving upwards of 30 offers and thousands over asking price. There is no question, this process will take time but the steps remain the same: Get preapproved, get zeroed in on what you want and most important in this market, be ready to jump!
We know that many buyers are thinking they will just build a house. New construction sales make up 38% of all home sales which is down 3% year over year. Right now, new construction is taking roughly nine to twelve months to build a house. This is just fine as long as you have the time to wait that potential one year until your home is complete. One common benefit of building that many enjoy is customizations. However, in this market, do not get your hopes up, even with high end builders. We just advise that you get a builder you like as most are so busy they are only doing spec homes right now.
If you have questions, feel free to comment below and we will get you answers as soon as possible! Keep in mind, real estate advice is always free and we are here to help.