February 2024 Market Update

February typically tends to be a slower pace season in real estate. However, you’d think it was the middle of a normal spring market looking at sales activity. It could be the mild temperatures or stabilized interest rates, but whatever it is, buyers are out and about looking at homes and swooping up available inventory. Some homes that were sitting on market in the winter months of 2023 are seeing a surge of interest and offers. New-to-market listings in certain segments are generating quite a bit of showings and offer activity. This healthy market pace is exciting for sellers as heightened demand and incredibly low inventory are keeping home prices from sliding. Home values for single-family homes in Ada County increased nearly 5% since this time last year! “Positive year-over-year trends in the median sales price show a shiny outlook on homeownership. Even as some aspects of the market fluctuate, the value of owning a home remains steadfast” said Elizabeth Hume, Boise Regional REALTORS® 2024 President. Low inventory levels coupled with lower rates and increased demand are building home prices again. Buyers may see a little more competition as we continue on this path of normal spring conditions. Currently there is about 1.7 months of available supply of homes in Ada County, leaning towards a sellers market. A balanced market is 4-6 months MSI (Month’s Supply of Inventory).      

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January 2024 Market Update

Rejoice, Boise! The sun has broken through the gray haze of inversion season (what is an inversion anyway?), giving locals a much needed reprieve from the winter blues. This spring-like weather is serendipitous to what’s happening in real estate, symbolizing a bright start to Boise’s housing market in 2024. Boise continues to defy negative media expectations with its resilience. Fears of an impending recession have dissipated as economic indicators remain steady, bolstering buyer confidence and fostering a robust housing market here in the Treasure Valley.   Lowest Interest Rates Since May 2023: One of the pivotal factors fueling this dynamic market is the persistently low interest rates, incentivizing buyers to get off the fence and on the hunt for their next home. Mortgage interest rates are at the lowest we’ve seen since May of 2023, reports Housing Wire. With borrowing costs remaining favorable, many individuals find themselves drawn to the prospect of homeownership, encouraged by the stability of the economic climate.   Clear Deficit in Inventory Keeping Home Prices High: This strong demand for housing is met with a persistent challenge: a striking shortage of inventory… nationwide. The scarcity of available homes continues to exert upward pressure on prices, creating an environment ripe for competitive bidding scenarios. For sellers, these conditions represent an opportune moment to list their properties, with the potential for swift sales and attractive returns. We likely won’t see competition at the magnitude of the pandemic market, but a healthy and stable amount breaking Boise’s real estate market out of a sluggish 2023. Supply levels need to increase significantly to match demand, and lower borrowing rates may nudge builders to start building once again.              Our Crystal Ball Says: Oh we wish we had one! There is no definitive way to predict the market. Many factors, including rates, economic conditions, and an upcoming presidential election can change the trajectory of our real estate market. Will it last? We’re not sure, but what we see now is a very active spring-like market as people are on the hunt for homes again. Sellers who are on the market now are going to be at an advantage versus waiting for the traditional spring market. The enthusiasm of this market is contagious, and we look forward to seeing strong sales in the first quarter of the year.  If you’ve been considering selling, reach out to us by phone (208) 870-8292 or email info@lysibishop.com for a no-obligation market valuation of your home and discuss ideal timing for you. We’re already seeing an increase in available homes ahead of the typical spring market and we don’t want you to miss this exciting opportunity to make the most of your home sale.   

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The Pros and Cons of New Construction vs. Existing Homes

When you are thinking about buying a home, a major decision is whether you want to build a brand-new home or buy an existing home. Both options bring a unique set of advantages and challenges, and it is important to think about which best fits your lifestyle and needs. Check out this guide to the benefits and downsides of both new construction and existing homes to help you decide which is suited for you!   New Construction: Benefits: Modern and customizable floor plans. When buying a new home, you may have the option to pick or even design your own floor plan, making your home perfect for your needs. Even if the home is already complete when you buy it, it will likely have a modern layout that is more open. Smart Tech and Energy Efficiency. New builds are typically built with adaptability to “smart” tech, such as speaker systems, alarms, lighting, and heating and air systems. These newer appliances are often much more energy efficient, leading to a lower utility bill and greater ease of use. Low Maintenance and Warranties: Because everything in the home (electricity, pipes, roofing, etc) is brand new, maintenance costs are likely to be very low for the first few years. Some builders also offer warranties on different parts of the home, further decreasing maintenance costs for a homeowner.                                                                                                                                                                        New Construction Communities. Recently built neighborhoods, such as Harris Ranch or Cartwright Ranch, may offer community amenities. Whether this is a neighborhood pool, pickleball court, or park, this is definitely a pro to new construction communities.  Downsides: Higher Price. New construction is usually more expensive than a comparable resale home due to current material and labor costs. Risk of Delays. In the case of building a home or buying a home during construction, there is the possibility of delays in the completion of the home. However, this is not the case when buying a new, finished home.   Existing Home: Benefits: Move-in Ready. Existing homes, as long as you are not planning a remodel, are typically ready to move into on the day of closing.  Lower Price. Existing homes tend to be less expensive than new construction homes, making them often the more affordable option.                                                                                                                                                                                      Established Neighborhoods, Landscaping, and Architectural Details. Existing homes can come in long-lived neighborhoods, featuring mature landscaping and trees in both your yard and your neighbors. Existing homes can also feature unique and antique details that cannot be replicated in a new build, giving your home history and character. Downsides: Outdated Floor Plans. Depending on the build date, existing construction is likely to have a more dated floor plan, which could include lower ceilings and closed-in kitchens.  Older Technology and Fixtures. When the home is not brand new, the lighting, sink, and bathroom fixtures may be aged and out of style. The home also will likely not include new appliances or technology integrated into it.This is not always the case, as different owners infuse more modern amenities into a home through remodeling and upgrading. Be aware that not all renovations are created equal, and that you need to do your due diligence to ensure that the ‘new’ stuff was installed properly and to code.                                                                                                                                                                                                                             Not So Energy Efficient. Due to older heating and cooling systems, or poor insulation,  an existing home may not be very energy efficient.                                                                                                                                                                           Potentially More Repairs and Maintenance. Older roofs, heating and air systems, and other aged appliances may lead to unexpected repairs in an existing home.                           

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