- November 10, 2021
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The greater Boise, Real Estate market has been on a roll for the past few years. The market gained so much attention that national outlets like The Today Show, the New York Times, and several other media platforms have reported stories on how hot our market has been record-setting. Folks across the Treasure Valley and the country are monitoring the prices of homes here and wondering whether it is time to buy or sell?
Yesterday the Idaho Statesman reported that rents in Boise have finally fallen. The Statesman reported today that Boise is the second most expensive city on the continent. Are the prices sustainable? Real Estate, except for last year, usually slows down between now and March.
Real Estate expert Ivy Zelman, who predicted the last crash, tells the Real Deal that home prices in Boise have reached unprecedented levels. She shares a thought from a local builder who has built over two thousand homes here. "They said it was like a light switch, like the market just literally turned off," said Zelman.
Three factors that could determine our housing market futures are interest rates: investors, and the Covid migration. If interest rates go up, the 'free money' will dissipate, causing prospective home buyers to limit their choices. Real estate experts counter that a considerable amount of homes are bought with cash.
If employers demand that workers return to their headquarters, we could see a mass exodus of remote workers returning to California. As Ivy Zelman and others have noted, many of the homes bought in Idaho are purchased by investor groups and not homeowners. If the market slows down, these investors have no loyalty to Idaho. Without investor demand, prices could fall significantly. You can read about the investor influence on our home prices here and here.