To say the Boise area real estate market is hot is an understatement. The latest housing numbers from the Intermountain Multiple Listing Service show even more price appreciation, and what shouldn’t come as a surprise, more records are set for the region.
The Boise real estate market continues to garner national headlines as our extreme seller’s market has caught the eye of the national media. But as you can imagine, Idaho isn’t the only state experiencing record-breaking demand.
And finally, The Mike Brown Group received national recognition for sales excellence in 2020.
Boise Real Estate Market Update
In case you missed it, the Intermountain MLS released the Treasure Valley / Boise Area Real Estate Market Update for May 2021, and the numbers for Ada and Canyon Counties are staggering. Ada County saw the median home price exceed half a million dollars for the first time, settling at $523,250 in May. That’s a 45.35% increase over May of a year ago.
a record. That marks a 48% year-over-year increase and it, too, saw homes selling within 12 days of hitting the market, down 63% since May 2020.
Additionally, the Capital County saw a record increase between April and May, with homes appreciating nearly 9% in value. The area also saw the number of days on the market plunge to a low of just 12 days, down 57% from a year ago.
According to the end of May snapshot, there was about three weeks’ worth of inventory available in Ada County, and the number of homes that sold was down a modest 5% from May 2020.
Ada County wasn’t the only region seeing record-setting sales in the Gem State as Canyon County’s median home price soared past $400,000 for the first time. In fact, it hit $400,000 and kept going, landing at a median of $410,000, which is a record. That marks a 48% year-over-year increase and it, too, saw homes selling within 12 days of hitting the market, down 63% since May 2020.
Canyon County did sell more homes in May than last year, selling 463, which marked a 15% increase. Canyon County also has a scant three weeks of inventory available, illustrating the scorching hot seller’s real estate market the area is in.
And while a lot of people are holding out hope that we’re in the midst of a housing bubble that will burst, indications are that’s not the case. Low-interest rates, sparse inventory, and extreme demand, especially from out of state, continues to push home values higher across the valley and the state.
Real Estate News
Hot Housing Markets
USA Today recently published a list of housing markets that are on fire nationally. What isn’t surprising for those living in the Boise area, Idaho was ranked #1 in the nation based on home value appreciation. From January through February of 2021, the median home price was $385,000, up nearly 72% since 2017. According to the report, Spokane, Washington, and the Ogden area of Utah round out the top three real estate markets.
Most Houses Selling at or Above Listing Price
The National Association of REALTORS® published a piece discussing how eight in ten houses nationally are selling at or above the asking price. So, while we mentioned earlier how it’s not just Boise that’s seeing a record-setting real estate market, other areas are also seeing incredible demand for homes as well as some interesting “extras” sellers are demanding from buyers. “Many sellers surveyed say they refused consideration of contingencies or other strings-attached offers,” said the report. All cash payments, quick closes, no contingencies, or “as is” sales have become the standard as opposed to the norm.
One online real estate forum shared examples of buyers offering sellers free car detailing, carpet cleaning in the seller’s new home, and even a housewarming party at the seller’s new home, courtesy of their old home’s buyers.
Idaho Growth Driven by People Migrating into the State
The Deseret News wrote an article talking about the housing boom in Utah and also spoke of Idaho’s growth, mentioning that “about 60% was driven by people moving into the state between 2010 and 2019, according to the Census Bureau’s American Community Survey. One in 5 of those came from California, many of them retirees seeking lower housing prices and a home among Idaho’s pristine wilderness areas.”
The same article contains a graphic with the top ten metro area rankings for the percentage of housing price changes (appreciation) over the past year, created using data from the Federal Housing Finance Agency. And not surprisingly, Boise was number one with a 23.4% increase in housing values.
Homeowner Equity Grows Nationally
Real estate tracking firm CoreLogic released its latest quarterly homeowner equity report, and Idaho saw the most significant year-over-year gain, with homeowners amassing about $71,000 in equity in the last year. California came in a close second at $70,000 in equity, with Washington State locking down third place with $66,000 in equity.
Nationally, homeowners saw an average increase in home equity by about 20%, giving the average homeowner about $33,000 in equity.
The Mike Brown Group Named One of the Nation’s Top Real Estate Firms
RealTrends, a real estate tracking firm, released its “The Thousand” real estate rankings for 2021, and The Mike Brown Group ranked 41st in the nation and 2nd in Idaho in terms of dollar volume among mega teams. The team helped people buy and sell over $356,000,000 in Idaho real estate in 2020.
“People have a lot of options when it comes to choosing an agent to help them buy or sell a property. We’re humbled that we’ve earned the trust of our clients who allow us to serve them with their real estate transactional needs,” said team lead Mike Brown.
The Last Word
The Idaho and Treasure Valley real estate market continues to boom, especially for sellers looking to capitalize on their ever-appreciating home equity. Boise and Idaho continue to find their way onto the top of lists, even if they’re not necessarily the lists people want to see – unless, of course, they’re already Idaho homeowners.
Expectations are the Idaho real estate market will continue to be hot into 2022 and perhaps longer as demand remains high and supply remains limited.
Main Photo Credit: iStock.com/Bet_Noire