The calendar has turned the page to July, and with half the year behind us, it’s hard to fathom that 2020 is becoming an increasingly distant memory. The Boise real estate market continues to be hot as home values continue to soar, setting records monthly. We’ll discuss this in our market update.
And as if the local real estate market isn’t hot enough, the national media spotlight once again found its way to Idaho and the Boise area. NBC’s The Today Show ran a segment touting Boise and speaking about the swarms of people relocating here from other states. More on that story shortly.
Not surprisingly, homeowner equity is up nationally, and two Treasure Valley cities are recognized as two of the best run in the nation.
We’ll discuss those stories and more in this edition of our Boise Real Estate Market News Roundup. Let’s dive in.
Boise Real Estate Market Update
The Boise Association of REALTORS® has released the market statistics for June 2021 and, stop us if you’ve heard this refrain before, home values are up, and records continue to fall. Ada County set another record with a median home value of $525,000, up a modest .33% from May, but is up 40% since June 2020.
The end of June snapshot showed the number of home sales sliding 18% from last June, with the number of days on the market dropping to a scant ten days—down nearly 69% from a year ago. Housing inventory continues to be tight, with only about three weeks of stock available in this very hot seller’s market.
Not to be upstaged, Canyon County again set a record, reaching a median home value of $424,000, an increase of 3.4% from the previous month and up 48.77% year over year for June. The average number of days on the market ticked up by a day versus last month to 13 days but is still down nearly 62% from a year ago.
Canyon County did manage to sell more homes than last year, but only 1.73% more.
Like Ada County, Canyon County has about three weeks of inventory available for would-be homebuyers.
Sellers continue to remain on the sidelines as there are still some lingering effects of COVID. Additionally, with lower interest rates, existing owners have refinanced to take advantage of lower rates. At the same time, other homeowners wonder where they’d move to if they manage to get top dollar for their homes.
Buyers will continue to be challenged as inventory remains tight and demand continues to be robust. Unfortunately, prices will continue to climb higher as this isn’t a housing bubble that will burst.
Homeowner Equity is Up Nationally
As home values continue to rise, homeowner equity is also increasing. According to real estate tracking firm CoreLogic, homeowner equity is up 19.1% in the first quarter compared to the same time in 2020.
Idaho leads the nation in homeowner equity gains, seeing an average of $71,000 gained last year, which isn’t surprising given the rapid increase in home values. California and Washington rounded out the top three states with equity gains at $70,000 and $66,000, respectively. North Dakota saw the lowest equity gain, with its homeowners gaining only $8,000 in value.
Best Run Cities in the Nation?
WalletHub returns with its 2021 edition of “The Best Run Cities in America,” and of the 150 cities WalletHub studied, Nampa was number one on the list, followed by Boise in the second position. Using 38 metrics, they evaluated the cities across six critical categories: financial stability, education, health, safety, economy, and infrastructure and pollution.
One can question the veracity of the findings, especially when cities such as Meridian are not included in the study.
Best U.S. Metros for Digital Nomads and Remote Work
As the pandemic forced most of America’s workforce to work from home, Zillow and Yelp partnered to study which locations are the best suited for digital nomads. Digital nomads can move from place to place and stay connected with work and family electronically.
Boise was third on the list.
“These destinations boast a mix of outdoor adventure and city perks that are appealing to the many young professionals who have transitioned to the nomadic lifestyle due to their newfound ability to work from anywhere,” says Yelp Trend Expert Tara Lewis. “They’re great for digital nomads and offer a variety of highly-rated local businesses and activities these folks are looking for, like shared office spaces, furniture rental, hiking, RV repairs, paddle boarding, and more.”
This study coincides with another report released by Apartment List showing Boise as the third best city in the nation for remote work.
Not to be outdone, Meridian was also one of the top 20 destinations for people relocating, according to Allconnect.com and MyMove.com.
National Spotlight Shines on the Boise Housing Market
NBC’s The Today Show paid a visit to the Treasure Valley, showcasing the hot housing market in Boise and the surrounding areas. Correspondent Harry Smith visited with a couple that recently relocated to the Boise area from Seattle, whose home appreciated 60% since they bought it last year.
Smith also visited with an Idaho native who expressed dismay with the rampant growth, especially the building taking place in the foothills.
Studio host Carson Daly also talked about his time visiting Boise and whitewater rafting as a child.
The day before his segment aired, Smith chatted with KTVB’s Mark Johnson about his experiences in Idaho and the similarities between Denver 50 years ago and Boise today.
The Last Word
It’s been a busy month in the real estate world, especially as it pertains to the Boise real estate market. We’ve entered the dog days of summer, so we may see the rapid ascent of home values slow, at least temporarily. While values in Ada County appreciated modestly between May and June, expectations are values will continue escalating.
As people return from vacations, we expect more houses to be put on the market as the second season of the residential real estate market begins in earnest. Demand will still outpace supply, and values will continue to rise.
It will be interesting to see what other headlines our area will garner in the coming months and how the market reacts, especially given the recent national exposure of the Boise area on The Today Show.
As they say in TV Land, “Stay Tuned.”
Main Photo Credit: iStock.com/Tinnakorn Jorruang