Following-up on what Realtor.com is expecting to be a banner year for real estate transactions, especially here in Idaho, last week the U.S. saw a 30% increase in mortgage applications versus applications the previous week according to a report by CNBC. Additionally, refinance applications saw a 109% increase over numbers from the previous year.
The strong economy and low interest rates are fueling the demand for housing, with homebuyer demand reaching its highest level nationally in 11 years.
Additionally, purchase applications increased 16% for the week, up 8% for last year at this time. Purchase mortgage activity is at the highest level since October 2009.
...the extraordinarily low interest rates, those are helping fuel demand as well.
As discussed before, buyer demand across the U.S. and especially here in the valley is extremely high. Unfortunately, with near-record low supplies of housing, home prices are going to continue their climb. And since the buying season seems to have started earlier this year, it could accelerate price increases in the area as demand far surpasses the available supply.
Builders are doing what they can to have turnkey homes ready to go, but with limited labor supplies, they’re challenged to keep up with demand as well.
“It’s the perfect storm of circumstances,” says Mike Brown, owner of The Mike Brown Group at Silvercreek Realty Group. “Idaho has seen record growth the past several years, especially from out of state buyers, so supply has been limited. Couple that with increased home prices, and we’re seeing a lot of homeowners unwilling to sell their home for fear they won’t be able to find something to their liking locally. It’s a catch-22. And lest we forget the extraordinarily low interest rates, those are helping fuel demand as well,” Brown said.
While demand will continue to outpace supply, there are homes to be had if you know where to look. Working with one of the REALTORS® from the Mike Brown Group, experts who know Idaho, they can help you find a home to fit your budget.