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Residential Real Estate Expert
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Boise real estate market update June 2024

Boise real estate market update June 2024

by | Jun 21, 2024 | Idaho Real Estate, Market Trends

The median price in both Canyon and Ada Counties has increased as of May 2024. In Ada we saw a 3.5% increase from the same time last year and in Canyon County a 1.2% increase.  Home prices have gone up along with days on market.  Buyers are taking longer to close on homes, and with increased inventory we are seeing fewer bidding wars than in previous years.  Let’s dive into the Boise real estate market update for June 2024

Take a Look at the Boise Area Real Estate Market Facts and Trends for June 2024

Increasing Inventory and Nervous Buyers

In Treasure Valley, the real estate scene is shifting dramatically. Inventory has surged by over 40% compared to last year, offering buyers a wider selection of homes. However, this increase comes amidst rising interest rates, shifting the advantage away from sellers. As a result, buyers are becoming more cautious, wary of overpaying in an uncertain market. They are gravitating towards competitively priced homes and seeking concessions from sellers, such as closing cost assistance or property upgrades.

Properties are lingering longer on the market, with homes that surpass the 21-day mark often receiving offers below the asking price. Buyers, especially those reliant on financing, are feeling the pinch of higher mortgage rates, limiting their ability to cover additional costs like closing fees or repairs identified during inspections. Consequently, they are increasingly negotiating for sellers to absorb these expenses.

This buyer’s market is catching many homeowners off guard, particularly those who delayed selling their homes last year in hopes of falling interest rates this spring. Although the supply of resale homes remains tight, more properties are beginning to surface. As of early June, active listings in Treasure Valley stood at 2,685, up by 42% from the previous year. Adding to the supply, builders misjudged the market’s trajectory and continued to expand, with new constructions now accounting for over 40% of the available inventory for sale.

Many sellers are taken aback by the current market conditions, especially those who postponed selling their homes in anticipation of better rates. Now, faced with a buyers’ market, these homeowners find themselves in a bind. While they want to capitalize on their property’s value, they’re also constrained by their own financial commitments, often related to buying their next home. This makes them less inclined to lower their prices significantly or offer extensive concessions. Typically, only those in urgent need to sell—such as relocators or those facing financial pressures—are willing to accept offers below market value or provide substantial incentives to attract buyers. This situation has created a complex interplay between waiting for the right price and navigating the needs of cautious buyers, adding another layer of negotiation to the already intricate real estate market dynamics.

Buyer Opportunities and Seller Expectations

Many potential buyers have been waiting for mortgage rates to decrease, only to find that rates have instead stabilized at higher levels. Despite this, the scarcity of inventory last fall and this spring drove home prices up in the Valley. However, as more homes hit the market, now presents an ideal time for buyers to make their move. Builders, eager to fill their new constructions, are offering significant incentives to attract buyers. These incentives often include upgrades like appliances, landscaping, and even cash towards closing costs or rate buydowns. Particularly, buyers should target spec homes that have lingered on the market, as these properties may come with additional bargaining power for further enhancements.

For those interested in existing homes, properties that have been on the market for over 21 days might provide an opportunity to negotiate better terms. Working with a knowledgeable buyer’s agent who understands the local market can be a game-changer, potentially saving thousands during negotiations.

Working with a knowledgeable buyer’s agent who understands the local market can be a game-changer, potentially saving thousands during negotiations.

Sellers must adjust to a slower market, where homes may take 45 to 60 days to close. The current trend shows buyers favoring longer inspection periods and showing less interest in rent-back arrangements. With rates expected to remain high through the summer, sellers should focus on ensuring their homes are in top condition to attract the best possible offers and prepare for a process that may involve more credits and extended negotiations.

In this shifting landscape, both buyers and sellers must stay informed and ready to adapt to capitalize on the evolving opportunities in the real estate market.

Talk to an Expert

In a fluctuating market, it’s essential to consult a real estate professional who deeply understands local dynamics. Online opinions and advice from acquaintances may be well-intentioned but can lead to costly mistakes. For personalized guidance on navigating Boise and the wider Treasure Valley market, consider scheduling a consultation with Jennifer Louis, your Boise Metro Area Real Estate Expert. Contact me at (208) 509-9122 or via email at jenn@boiseandbeyondrealty.com To set up an appointment.Set an appointment today to understand the market trends in Boise and the surrounding Treasure Valley with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or jenn@boiseandbeyondrealty.com.

Buying a Second Home in Idaho

Buying a Second Home in Idaho

by | May 1, 2024 | Discover Boise, Idaho Real Estate

(UPDATED 5/1/2024) Idaho is home to some of the most scenic landscapes in the Northwest and after a vacation to one of its idyllic lakes or mountain towns, the fantasies of owning a second home in the Gem State begin. Here’s a look at some of the most popular vacation areas in Idaho and what to expect should you decide to buy a second home in Idaho.

Buying a home in McCall, Idaho.

McCall, Idaho is a popular, bustling resort town located just a little over 100 miles or two hours North of Boise and is known for its pristine Payette Lake and Brundage Mountain resort making it a great destination all year long. Condos, cabins and beautiful estates line Payette Lake’s shores and the surrounding forest.

McCall was established as a resort town back in the early 1900s and has remained that way until today, however, it’s only in the past several years with the tremendous growth in Idaho that McCall has been put on the map. The real estate market in McCall is one of the most competitive markets for primary and secondary home buyers. The median price for a single-family home in Valley County which is home to McCall, Idaho is currently $850,000. For a townhome or condo, the median price is $715,000. Homes in this area go quickly and it’s common for a home for sale to have multiple offers and disappear in a week once hitting the market.

Buying a home in Stanley, Idaho.

Just 3 hours northeast of Boise, Stanley has become one of the hottest real estate markets in the area for primary and second homes. Located in central Idaho and surrounded by the Sawtooth, White Cloud, and Lost River ranges, Stanley is known for some of the best hiking, rock climbing, fishing, and whitewater rafting in the US and is home to the breathtaking Redfish Lake.

Demand for homes are particularly high and often sell within days if not hours from hitting the market and it’s not unusual for homes to receive offers sight unseen. The area offers large adventure but is relatively small with minimal housing inventory.  One of the challenges of buying a home in Stanley is that many are sold directly from seller to buyer. In For Sale By Owner cases in this area being in the right place at the right time or knowing someone who has a home for sale is key to finding a home. Land sales have also increased in the area with 9 parcels sold on the MLS in the past 18 months. Yet, due to its size and the surrounding public lands Stanley will most likely never develop like McCall or Sun Valley, Idaho.  If you are looking to purchase land or a home in this area, give me a call and I can connect you with real estate professionals who know this area.

Buying a Home in Coeur d’Alene

Idaho is located in northwest Idaho near the Washington State border. It’s known for water sports on Lake Coeur d’Alene, trails in the Canfield Mountains, and the surrounding 50 lakes. It boasts activities for all year round including snow mountain resorts.

Out-of-state buyers are fueling the real estate market in Coeur d’Alene. Many escaping the home price tags in their own states and desiring a piece of the outdoors are heading to this beautiful area. Once again the area has high demand for housing driving up prices. The average home price sale according to Realtor.com was $635,000 as of 5/1/2024. However, new developments are in the works and if you are willing to wait for a year buying a new home may be the answer. One of the biggest challenges to the area is that second-home buyers are competing against primary home buyers. The demand for homes has been increasing tremendously since the Spring and the inventory can’t keep up which will continue to drive up prices and create a seller’s market

If you’re still on the fence of whether buying a second home is right for you take a look at some of the pros and cons:

Pros of Buying a Second Home

Buying a second home can be a great investment as these areas are popular destinations and are more likely to hold and even continue to increase in value. There is also the incentive for tax deductions. If you keep your second home unoccupied other than for your enjoyment and only rent it out for no more than two weeks per year then the interest on the mortgage and the property taxes are fully deductible from your gross income. Another option is to rent out your second home for income while you aren’t occupying it. Rental fees vary according to seasons and the popularity of the area. Typically, peak season weekly rental fees are usually equal to or greater than the property’s monthly mortgage payment, allowing you to break even with an annual occupancy of around 30% from a cash flow viewpoint.

Let’s face it owning a second home if you can afford it can be a great long-term investment and an opportunity to enjoy regular vacations in a familiar space without the stress of finding lodging while away. The advantages can go on and on depending on your situation, but as with any decision, it’s important to weigh the disadvantages before deciding to buy.

Cons of Buying a Second Home in Idaho

A second home mortgage typically requires a larger down payment of 20-30% and a higher interest rate and as with any home you own you are responsible for the maintenance. This means if you don’t live in the area hire a property management, or maintenance company to take care of any leaky faucets, burst pipes or any number of things that may need repair on your second home while you are not in town. Another important item to consider is that once you decide on a vacation home it can often lead to feeling married to that one vacation spot all year long, year after year. It can create a feeling of inflexibility and make you less likely to visit other beautiful areas during your vacation periods.

Here’s a great article full of pros, cons and next steps to purchasing a second home in Idaho: Pros/Cons of Buying a Second Home. In the meantime it’s free and fun to just check out some of the beautiful vacation homes for sale in lovely Idaho even if you never decide to purchase and owning that second home remains a fantasy.

Check out Idaho’s Vacation Homes in McCall, Idaho

Check out Idaho’s Vacation Homes in Sun Valley, Idaho

Check out Idaho’s Vacation Homes in Stanley, Idaho

Check out Idaho’s Vacation Homes in Coeur d’Alene, Idaho

Would you like to know more about the real estate market in Idaho? Please contact 208-509-9122 or jennlouis@welcometoboiseandbeyond.com for more information or to be connected to a real estate professional specializing in these specific areas.

Boise Real Estate Market Facts and Trends – April 2024

Boise Real Estate Market Facts and Trends – April 2024

by | Apr 24, 2024 | Idaho Real Estate, Market Trends

The median price in both Canyon and Ada Counties has increased as of April 1, 2024. In Ada we saw a 14.4% increase from the same time last year and in Canyon County a nearly 5% increase.  Home prices have gone up, but so has inventory, yet bidding wars are not the norm.  In fact, even with the price increase it may feel different to sell your home this year than in past markets with increasing prices.  Let’s dive into the trends driving the Boise Real Estate Market Facts and Trends – April 2024

Take a Look at the Boise Area Real Estate Market Facts and Trends for April 2024

 

Rising Home Values and Shifting Market Dynamics

This year, home values have continued to rise, alongside a reduction in days on the market. As we step into the Spring market, there’s a noticeable increase in inventory. However, this doesn’t necessarily signal a surge in buyers. With interest rates fluctuating within the high 6-7% range, the appeal of selling homes with lower rates and purchasing at higher rates diminishes. Currently, there are fewer buyers compared to previous years, which can be attributed to the low overall inventory despite the increase.

As we transition from Spring to Summer, if rates decrease, we may see a gradual rise in home prices again. Buyers are cautious, paying over the odds, resulting in fewer bidding wars and multiple offers than we’ve seen in similar past markets.

Interest rates are crucial in shaping the inventory entering the market and will impact home prices significantly. Many buyers have been on the sidelines, awaiting lower rates, and are now re-entering the market. States that typically feed buyers into the Treasure Valley are softening, which might boost the buyer pool in Boise once these individuals sell their current homes. This could potentially shift the market back to favor sellers as demand might surpass supply, though less dramatically than during the pre-COVID and COVID years.

Spring Insights:  A Time of Opportunities and Cautions

Spring is a season of increased home prices as more buyers join the market. A slight dip in interest rates could bring back buyers who were previously priced out. Despite this, buyers remain apprehensive about overspending and taking on homes that might require significant updates or repairs. Interestingly, even though home prices are going up, most homes are still selling under the asking price if we include concessions offered.  For example in March 2024, 63% of homes in Ada County sold under the asking price if you look at final sales price and concessions offered.  In Canyon County 79% sold under the asking price.

Notably, a large percentage of homes are selling below asking price once concessions are considered—63% in Ada County and 79% in Canyon County as of March 2024.

For sellers, it’s important to note that homes are taking longer to close, with buyers opting for extended inspection periods and less likely to agree to rent-back arrangements. Sellers should be prepared for a closing window of 45 to 60 days post-acceptance.

Rates are likely to stay elevated through the summer, influencing buyer behavior. Sellers should ensure their homes are in prime condition to attract the best offers, and be ready for negotiations involving more credits and a longer selling process. Buyers can benefit from the extended market time to make well-considered decisions, including thorough inspections like sewer scopes or fireplace checks.

Talk to an Expert

In a fluctuating market, it’s essential to consult a real estate professional who deeply understands local dynamics. Online opinions and advice from acquaintances may be well-intentioned but can lead to costly mistakes. For personalized guidance on navigating Boise and the wider Treasure Valley market, consider scheduling a consultation with Jennifer Louis, your Boise Metro Area Real Estate Expert. Contact me at (208) 509-9122 or via email at jenn@boiseandbeyondrealty.com To set up an appointment.Set an appointment today to understand the market trends in Boise and the surrounding Treasure Valley with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or jenn@boiseandbeyondrealty.com.

What the NAR Settlement Means For Idaho

What the NAR Settlement Means For Idaho

by | Mar 19, 2024 | Idaho Real Estate

The National Association of Realtors, NAR is making headlines with their unprecedented settlement that if approved by the courts could transform how broker commissions are managed. This move directly impacts over a million NAR members, including agents, brokerages, and MLS services, setting a new precedent for transparency and negotiation in commission structures.  This article will detail what the NAR Settlement means for Idaho and those buying and selling homes in the state.

Key Changes and Their Impact

Transparency in Commissions

The settlement mandates a shift in how broker commissions are disclosed. Specifically, the practice of advertising cooperative compensation on MLS is changing. Sellers traditionally agreed to a broker fee, shared with the buyer’s agent through MLS listings. Now, such compensation must be negotiated outside of MLS, requiring buyers to understand their agent’s fees upfront through a Buyer Representation Agreement.

Negotiation of Fees:

Sellers retain the flexibility to negotiate commission fees and may opt to offer a cooperative fee to the buyer’s agent. This isn’t a novel concept; however, clarity around fee negotiation has been lacking in certain states, leading to misconceptions about commission rates. The settlement aims to rectify this by ensuring all parties are informed and agreeable to the terms from the outset.  The NAR does not set commissions or require a set fee. Fees are negotiated via a seller representation agreement and buyer representation agreement before a transaction begins for the majority of real estate transactions in Idaho.

The Idaho Example

Idaho has been ahead of the curve, with clear stipulations regarding brokerage and cooperative fees. This practice ensures buyers and sellers are well-informed from the beginning, reducing surprises and fostering a fair, transparent real estate environment.

Market Misconceptions

Despite rumors that the settlement could lower home prices or eliminate buyer agent fees, it’s essential to understand that the value provided by real estate professionals remains unchanged. Agents play a crucial role in guiding clients through the complexities of buying or selling a home, and their services come at a cost. This settlement doesn’t abolish fees but emphasizes transparency and choice, ensuring clients know what they’re paying for and why.

Real Estate Professionals as Small Businesses

It’s vital to remember that agents, operating under brokerages, run their businesses. This means they have the autonomy to set their service fees, which are negotiable and subject to the client’s choice. This autonomy respects the professional judgment of real estate experts and the consumer’s right to choose.

In Conclusion and My Personal Opinion

In writing this article, I’ve delved into the legal documents and discussions with my team at Silvercreek Realty Group to clarify misunderstandings and share insights. The real estate sector is undoubtedly at a crossroads, needing evolution. While I have reservations about removing cooperative fee advertisements from MLS, my commitment to transparency has never wavered. That’s precisely why I chose to work with Silvercreek Realty Group and take pride in operating openly in Idaho’s real estate scene.

The structure of real estate organizations like NAR, local associations, and MLS does seem a bit dated. Their focus on increasing membership for revenue, making entry into the profession too easy, raises questions about maintaining high standards. With over 8,000 agents in the Treasure Valley alone as of 2023, the bar for entry is low, involving just a course, exams, and a background check, with no rigorous vetting process. This ease of entry might contribute to the lack of transparency that led to legal challenges against NAR.

Despite intense competition, which theoretically should lower fees, many agents are selected by sellers or buyers based on personal connections rather than expertise, creating disparities. Given that the average real estate agent in Idaho makes around $40,000 a year, not accounting for expenses, the competition paradoxically keeps fees high for agents to remain viable. Elevating the requirements to become a real estate agent, such as implementing a college degree prerequisite or mandating years of experience in relevant fields, could enhance professionalism and ensure that those entering the industry are truly qualified.

With an industry filled with qualified professionals, we would see a more positive light shining on real estate agents and what they do in a real estate transaction.  In the meantime, I encourage those looking to buy or sell a house in Idaho to take your time when choosing your real estate professional.  I wrote an article to help guide buyers and sellers in making this decision because it is important.  A good agent should have experience, qualifications, and a proven track record with real client reviews and sales,  not just be someone you know or are related to.

If you have more questions about what the NAR Settlement means for Idaho or how it could affect you if you are considering selling or buying a home please reach out.  I am passionate about this field and would love to chat.

Boise Real Estate ProfessionalFor expert guidance on moving to Boise, or selling a home in the area contact Jennifer Louis, a Boise real estate and relocation expert. Set up a time for a consultation here.  In the meantime, make sure to follow me,  Jennifer Louis, Boise Metro Real Estate Expert, and local relocation guide on Instagram, Facebook, or my blog for fun facts about Boise and of course a few things real estate.  (208) 509-9122 or jennlouis@welcometoboiseandbeyond.com.

Boise Real Estate Market Facts and Trends – March 2024

Boise Real Estate Market Facts and Trends – March 2024

by | Mar 15, 2024 | Market Trends

The median price for Ada County in February was hovering just over $520,000 an increase from last year In Canyon County, the median price increased by nearly 5% with a median price of $410K. Why the sudden increase this early in the season?  Let’s dive into the trends driving the Boise Real Estate Market Facts and Trends – March 2023

Take a Look at the Boise Area Real Estate Market Facts and Trends for March 2024

 

Ada & Canyon Counties Home Prices Trend Upwards

Ada and Canyon counties, two pivotal areas in Southern Idaho, have experienced a notable uptick in home values from January to February 2024, primarily due to a scarce housing inventory. As of March 1st, Ada County reported 512 single-family homes on the market, marking a decrease of 95 homes compared to the previous year. This scarcity, coupled with a dip in mortgage interest rates at the year’s start, has intensified buyer competition, following the classic supply and demand principle.

Shifting Inventory Dynamics

The interest rates are playing a role in the inventory we are seeing entering the market and will have an effect on overall home prices, but there have been so many buyers on the sidelines in anticipation of lower rates and are now starting to emerge back into the market.  Other states that typically provide buyers to the Treasure Valley market are starting to soften and once these buyers can sell their homes in their current place of residence we can expect the buyer pool to surge again in the Boise area.  More buyers on the market, even with an uptick of homes coming for sale will most likely tip the market back into a seller’s market as demand surpasses supply.  We can expect it will be less dramatic than in the pre-COVID and COVID years, but buyers should prepare to start seeing homes go pending much sooner and multiple offers may become the norm again.

A Few Key Facts

The beginning of the year traditionally sees a slowdown in home sales, attributed to post-holiday work resumption and inclement weather, affecting buyer mobility. Despite this seasonal trend, home prices have risen. However, sales volume has dipped. The average days on market for homes in Ada and Canyon counties were 27 and 30 days, respectively, in early 2024. Notably, homes under $500,000 in Ada County are selling swiftly, often at full asking price, with bidding wars in some cases. Conversely, homes priced over $600K are taking longer to sell, with those at the $1M mark requiring 3-6 months to find buyers.

Mortgage interest rates continue to significantly influence the housing market, making homes more accessible and thereby increasing buyer activity. A softening market in other states is anticipated to further boost the buyer pool in Boise as sellers elsewhere can move more freely.

Current buyer trends highlight a demand for homes conducive to remote work, sustainability, smart technology, wellness amenities, and co-living spaces. These preferences are important for sellers to consider when updating or staging their homes.

2024 is gearing up to be another year of a shifting market.  Rates have come down from last year, bringing more buyers and are expected to continue decline, but not to the low rates we saw a few years ago. They will slowly trickle down, and this will bring on more and more buyers as homes come within their affordability range.  With more buyers we can expect home prices to go up in both Ada and Canyon County, not dramatically, but a steady incline.  The fact is, Idaho still remains a very desirable place to live for many relocating from other states.

Buyer Opportunities

I feel like a broken record, but there are still great opportunities for buyers out there right now.  Homes that have lingered on the market for over 21 days and remain vacant may be more inclined to negotiate on price. Having a seasoned agent like Jennifer Louis, a real estate and relocation expert specializing in Boise and the Treasure Valley, is invaluable for understanding when and how to negotiate effectively in the current market.

Despite the competitive market, there are still advantageous opportunities for buyers, particularly in securing deals on homes that can potentially lower their monthly expenses compared to renting. Idaho offers various programs to assist first-time buyers with down payments and closing costs.

For personalized advice on navigating the Boise real estate market, reaching out to a seasoned agent like Jennifer Louis can provide invaluable insights and negotiation strategies.

Talk to an Expert

It’s imperative to talk to a real estate professional who understands the market you are buying and selling in to truly understand the best timing to sell and buy.  There are a lot of opinions out there on the Internet, or even trusted friends, colleagues, and family, but unless it’s coming from someone with the pulse on the market you are dealing in, you might be getting the wrong data and that could potentially cost you thousands.  Set an appointment today to understand the market trends in Boise and the surrounding Treasure Valley with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or jenn@boiseandbeyondrealty.com.