June 2020 - Ada & Canyon County Market Trends
TREASURE VALLEY REAL ESTATE MARKET REMAINS STRONG DESPITE THE PANDEMIC
Since the pandemic arrived employment, education, and life as we know it in Idaho came to a nearly screeching halt. One would expect the situation would have dramatically impacted the real estate market as well. Yet, even with the skyrocketing unemployment rates, existing home prices in Ada County increased by 8% year-to-date compared to 2019 and 7% for Canyon County. Although the pandemic has brought about some changes home prices in the area continue to soar and here are a few reasons why:
Low Supply and High Demand. Ada County still has a record low inventory of existing homes to sell, dropping to 1.18 months of inventory in May and less than 1 month for Canyon County. Idaho’s Stay at Home Orders are partly responsible for the low inventory as some homeowners delayed their plans to sell their homes due to the situation, but the pandemic only exasperated the already extremely low inventory in both counties. At the same time, the pandemic hasn’t slowed down those relocating to the area. Demand to buy remains high and homes in Ada County are still receiving multiple offers and selling within 7 days on average. Canyon County homes in May stayed an average of 10 days on market quite a decrease compared to the 27 days they stayed on market during the quarantine in March/April.
Ada County Market Trends in May 2020
Canyon County Market Trends in May 2020
Ada & Canyon County affordable compared to neighboring real estate markets. Home buyers are still moving to the area for the same reasons as before, the Treasure Valley is a great place to live and more affordable than other metro areas in the US. For some who have become newly unemployed, they found themselves priced out of more expensive markets and are in search of more affordable ones such as Boise. The quarantine also opened the opportunities for many to start working remotely, allowing them to earn Seattle, New York, and San Francisco salaries living in a more affordable area, such as Boise, Meridian, Nampa or Kuna.
Really low-interest rates. The historically low mortgage rates have made purchasing a home for many as affordable, if not more affordable than renting a home in Boise or the surrounding area. At the end of May the average rate on 30-year fixed-rate mortgages went down to a record 3.15% allowing home buyers to afford more, even with the increase in home prices. Knowing that these low rates won’t last forever and that lenders are looking to impose tighter restrictions to qualify for a home loan is pushing buyers to shop urgently for home and compete aggressively with others when making an offer on a home, driving up prices.
Expect Boise and the entire Treasure Valley to remain in the Seller’s favor throughout 2020. There would need to be nearly six months of inventory for the market to shift to the home buyer’s favor and we are nowhere near that point. If you’ve been considering selling your home now is great time, however, preparing and marketing your home correctly are essential to get the best price. More buyers have shifted to viewing homes online and virtual tours are becoming a lasting trend. Having your home prepped, staged and camera ready can make a big difference in the reaction you get from out of state buyers shopping online.
If you are considering selling your home or looking to invest in the real estate market here contact Jennifer Louis at (208) 509-9122 for an evaluation of your homes value at no charge.