Boise, ID Real Estate Market 2020 Recap & 2021 Forecast

2020 brought us one of the wildest real estate markets in memory. When COVID-19 began to take a foothold in early spring, the real estate market came to a screeching halt…for about two weeks. As the pandemic moved through spring and summer, the Boise market grew red hot once again.

[embedded content]

Here are some of the most notable takeaways of the Boise area real estate market in 2020.

A Major Sellers’ Market

Throughout the year, sellers in the Treasure Valley were seeing multiple offers, home bids well over asking price, rapid appreciation, and buyers waiving home inspections and appraisals. It was a good year to be a homeowner or a home seller. Homebuyers, on the other hand, had to learn to navigate an increasingly competitive market.

Record Low Inventory

2020 began with a shortage of homes listed on the market. Listings were hovering around 2-3 months of inventory at the start of the year. Other than the short-lived halt in the market due to COVID-19, the trend of low inventory only increased throughout the year. In late spring, inventory fell to record lows, with only a one-month supply. In total, active listings in both Ada and Canyon counties fell 79% in 2020.

Rising Home Values

Dropping inventory levels often lead to rising home values, and this principle held true in the Boise area this year. For context, the year-over-year increase in values for Ada County homes between 2018 and 2019 was only 9.9%. The 2019 to 2020 growth was immense.

In addition to record-low inventory, record-low interest rates also drove the increase in home values. Buyers were jumping to buy new homes, even while fewer and fewer homes became available.

Migration to Idaho

During the 2020 and the COVID-19 pandemic, the entire country saw a trend of urbanites moving out of major cities and into areas with more space and fewer people. This trend accelerated the already expanding Boise market and our surrounding vacation markets, such as McCall and Sun Valley.

The cost of driving a Uhaul from San Francisco to Boise was 10-30 times more expensive than moving the exact same Uhauls from Boise to San Francisco. Uhaul parking lots are literally bursting at the seams with idle trucks from people having moved to Boise or the surrounding areas. Idaho is now the fastest-growing state in the country.

Expectations for 2021

As we enter 2021, the story of the Treasure Valley remains the same. Huge numbers of people are moving to Boise and the surrounding areas. There is an extreme shortage of homes for sale and for rent. Prices of homes for rent and sale continue to escalate.

On the bright side for prospective buyers, interest rates are near their all-time lows, and this fact has helped keep affordability in check despite the massive growth in appreciation. If interest rates are to reverse course then affordability could become a major impediment to home buyers.

With possible increases in income taxes and capital gains, we could see new headwinds on luxury real estate which has had a good run. Investors are more likely to participate in a 1031 exchange to defer rising capital gains rates. In short, 2021 is starting off as 2020 ended. It’s a great time to be a homeowner. This is good news for sellers and buyers alike.

Talk to A Homie in 2021

If you’re looking to take advantage of the current sellers’ market, click here to get in touch with us and start listing your home. Our Homie team will help you get an awesome price for your home while making the transaction run smoothly and quickly.

If you’re looking to buy a home in the Boise area this upcoming year, our expert agents will make navigating this competitive market a breeze. Click here to start buying.

Source: homie.com