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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Why FSBOs Regret Not Using a Real Estate Agent

Photo credit: Unsplash When selling a home, some people opt to list their home as For Sale By Owner and skip using the guidance of a real estate agent to save money on agent commissions. While the idea of cutting costs may be appealing, FSBO sellers often find themselves regretting this decision in the long run. In a recent survey by Clever Real Estate, those who listed with a real estate agent were 50% more likely to say they had no regrets than those who listed their home FSBO. Those who sold without an agent also faced lower sales prices, a longer selling process, and more stress than those who used an agent. In this article, we'll explore the common reasons why FSBOs often regret not enlisting the services of a professional real estate agent.   Pricing: One of the largest drawbacks of FSBO is the challenge of accurately pricing the property. Real estate agents have access to extensive market data and experience that enables them to perform a comparative market analysis to determine the optimal listing price. FSBO sellers, who lack access to such resources and knowledge, are likely to underprice or overprice their homes, resulting in losing money on the sale or extended time on the market. Third party valuations, like Zillow’s Zestimate, are often inaccurate and don’t reflect the full picture of pricing a home at current market value.   Limited Exposure and Marketing: Real estate agents have a broad network of clients and access to multiple listing services (MLS), ensuring your home gets maximum exposure. FSBO sellers, on the other hand, may struggle to reach potential buyers. This limited visibility for FSBO homes can lead to longer listing periods, decreasing the chances of attracting the right buyer at the right price. Getting the highest price on your home also requires an effective marketing strategy. Real estate agents are knowledgeable and skilled in creating captivating listings, high-quality professional photographs, and showcasing what makes your house special to buyers. FSBO sellers may lack this expertise and by failing to show your home in its best light, you may lose out on money on the sale or spend more time on the market.                    Negotiation Skills: Negotiating a real estate deal is a unique skill that real estate agents develop after years of professional experience. In the case of a challenging negotiation, an FSBO seller might feel unprepared and unsure of how to proceed due to a lack of experience. This can lead to lost money on the sale or agreeing on unfavorable terms. Real estate agents are experts at handling negotiations, which will ensure that both parties reach the best possible terms and conditions.             Legal and Contractual Mistakes: Real estate transactions involve complex legal documents and contracts. FSBO sellers risk committing to unfavorable terms and conditions due to being less experienced in the jargon and intricacies of real estate contracts. Real estate agents, however, are experienced in the legal aspects of the home-selling process and will ensure that all documents and contracts are accurate, compliant with regulations, and understood by the seller.   Stress: The process of selling a home takes a lot of time and work, from depersonalizing the home, staging the home,  taking photos, marketing the house, hosting open houses, choosing an offer, negotiating, doing inspections, and more. Without an experienced agent to guide you through this process, taking care of all steps, hiring the best photographers and stagers, developing a marketing plan, and more, this process can take a toll on the sellers. With the help of a real estate agent, selling your home can be a positive experience that you can look back on with no regrets.                  

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The Future of Real Estate: Emerging Trends to Watch

Photo Credit: Doug Petersen As the new year begins, real estate continues to change and evolve to fit with technological advancements and shifting societal norms. From sustainable living to virtual tours, several trends are shaping the future of housing. Let's explore these emerging trends that are expected to leave a lasting impact on how we buy, sell, and live in our homes.   Home Efficiency: Photo Credit: David FishEnvironmentally friendly living is taking center stage in the real estate landscape. As sustainability becomes sought after by buyers, “green homes” are gaining popularity. These houses incorporate eco-friendly practices, such as energy-efficient appliances, solar panels, and energy-efficient windows. These homes not only positively impact the environment, but also can lead to lower energy bills for the homeowners.    Smart Features: Photo Credit: David Fish The integration of smart technologies is revolutionizing the way we interact with our living spaces. Smart homes with connected devices and automation systems offer enhanced security, energy efficiency, and convenience. These high-tech devices include thermostats that can be set on your phone, security systems that can be controlled remotely, and smart lighting throughout the house. These devices add convenience to our homes and buyers are prioritizing homes with tech built in. The future holds the promise of even more sophisticated and interconnected smart home solutions, making our living spaces comfortable and intelligent.   Home Office Space: Photo Credit: Doug Petersen The rise of remote work has changed what homebuyers are looking for in their ideal homes. With an increasing number of people working from home, homebuyers now prioritize dedicated office space. The real estate industry is adapting to this shift, with builders and developers incorporating flexible and multifunctional spaces to accommodate these needs. The home is transforming from a living space to a versatile place that supports both life and work, a lingering change from the pandemic.   Smaller Single Family Homes, More Townhomes, Larger Condos: Photo Credit: Tony Moody Higher mortgage interest rates and a shift in lifestyle have placed emphasis on smaller single family homes with less bedrooms. The National Association of Home builders says that the median square footage of new single family homes is 2,261, a little more than 200sf smaller than in 2015.. At the same time, renters are seeking more space to accommodate changes in remote work and more luxury amenities. Demand for luxury apartments remains intact heading into 2024, especially in retirement areas like Florida and Arizona.    Natural and Native Landscaping: Photo Credit: Doug Petersen Concerns over climate change and resource availability is forcing homeowners to reconsider whether the grass is greener on the other side. Yards consisting of native/drought-tolerant plants, rock, and other hardscape are being prioritized over lush, water hungry lawns. In desert climates like Idaho, Arizona, and California, xeriscaping has been popularized and is becoming more accepted by HOAs. Rising Home Prices and Less Inventory: As demand for housing continues to surge, the real estate market is grappling with rising home prices and dwindling inventory. The National Association of Real Estate predicts home prices to rise by 2.6% in 2024. The competitive market will force buyers to act swiftly, while sellers enjoy the benefits of increased property values.

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