July 2020 - Ada & Canyon County Market Trends
Updated: Jul 9
Home prices continue to jump in both Ada and Canyon County. Fewer and fewer homes are going up for sale in turn driving up the prices. In Ada County from June 1-30th, there were 484 existing homes for sale compared to 893 one year earlier & Canyon County had 170 active listings in June compared to 332 the year before. This means both Ada & Canyon Counties are down to under a month's supply of existing homes for sale. YIKES! With more people moving to the area every month searching for a home and fewer homes for sale we can expect the prices to continue to rise.
Ada County Market Trends in May 2020
Canyon County Market Trends in May 2020
Limited Supply Coupled With Affordability Continues to Impact the Market. With Southern Idaho remaining one of the top places to relocate along with record low-interest rates there has been an increase in demand in housing. As of May 2020, the average 30-year-fixed-rate mortgages could be found at just over 3% allowing home buyers to afford more than they could at the end of 2019 when prices were lower. However, with many homes becoming more affordable for the average home buyer the issue still remains that there are fewer homes on the market than buyers willing to buy them. This means buyers can expect multiple buyers interested in the same property and homes being sold almost as quickly as they come on the market.
Affordable Home Opportunities Are There For Outside The Box Thinkers.
As covered above we are seeing that turn-key, move-in ready homes priced competitively are selling quickly in both Ada and Canyon Counties, but for buyers willing to look "outside the box" and consider alternatives there are still some opportunities out there. For example, both Ada and Canyon County have many older homes in their established neighborhoods, some needing a little TLC or repair. Many of these homes get overlooked as they may be priced too high for investors to make a profit, but for a buyer willing to put in a little work or sweat equity it could be a fantastic opportunity.
Being open to less neighborhoods today may create great future opportunities. Ten years ago areas such as South Boise, Garden City, West Nampa or Meridian were not the most sought after neighborhoods for home buyers. Now, these areas are seeing price tags comparable to their more popular neighboring areas. Take for example the Boise Suburb, Garden City that had lower than average home prices ten years ago compared to its neighbors.
The above chart shows that investing in a home ten years ago in a less sought after Boise neighborhood could mean a nearly 150% increase in value if that same home was sold today. For buyers capped at a certain budget to purchase a home this example demonstrates that investing in an area a little off the beaten path or a neighborhood that is up and coming can be a great investment in the long-term.
Unprepared Sellers Are Potentially Missing Out On Thousands When Selling.
Many of those considering selling their home may read the above trends and feel they can put their home on the market today with little effort and sell it for top $$$. Although low inventory means buyers may be less picky, the market shows that homes that have not been properly prepped are selling for less than their full potential, up to 5-10% less than a comparable home prepped to sell. Cleaning, staging, and prepping a home to sell are imperative if you are looking to get the best price on your home, and can be done with minimal effort and cost. Sellers should keep in mind that even if they get a full asking price offer on their home this can often be negotiated down during the inspection period if repairs come up on the inspection report. Ideally, sellers should take care of as many repairs before listing their home to ensure they don't find themselves having to reduce the price because they are already so far into the sale.
Jennifer Louis is the owner and operator of Welcome to Boise and Beyond, a full service real estate company dedicated to those relocating to the area and locals looking to sell their home and maximize value. Jennifer writes and produces with her team weekly updates on the real estate industry in Boise and the surrounding Treasure Valley. Her blog contains insights into some of Boise's best local businesses, places to visit and neighborhoods to discover. If you'd like to schedule a free consultation please call: (208) 509-9122 or via email.