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Watching the price digestion and weak hands folding. Then, upward prices will continue. Folks are moving here in droves. I say let them come. Growth is inevitable , its a nice place still. I love the morning sky.
The real estate market has indeed softened. Lots of price reductions and more inventory. This is a good thing as the market has been completely out of balance for a number of years. That said, well-priced homes in quality neighborhoods are still moving fairly quickly. I don't expect a major price correction down the road, but this new equilibrium may persist for 6 months or more.
For those who want to put down roots in the TV, have their finances in order, and purchase within their means, this is a good buying opportunity. While lower prices are nice (and often what people focus on), the shift to more of a buyer's market is more important. It means folks are more likely to find a house they love in the neighborhood they desire. It also means less competition with over-asking all-cash offers, and the ability to actually do inspections and negotiate with sellers. Again, all around good stuff for the health of the housing market.
Will prices shoot up again in the future? No one knows, nor is this a good reason to buy housing as it's nothing more than speculation. [I would also argue that rapidly increasing prices are a net negative for the community, but that's a topic for a different thread.] A house is a place to live and owning provides long-term stability. If you plan on living here for 10+ years then don't worry about short-term price fluctuations. With a lot more inventory to choose from now you can take your time and do your homework. If you find a house you like that's been on the market for > 3 months you may be able to negotiate a lower price or other concessions.
There will be downs and lows regarding the RE market, but Idaho will continue growing.
Boise's RE market has a bright future because of Micron's $15 Billion dollar expansion that will create 17,000 new jobs in the area. This is going to spur even more hi-tech job growth in Boise and Idaho.
This is huge investment in the USA and Boise is at the forefront.
Prices for homes in the Boise area did in fact drop a little over 4% last month but that is still a net growth in values over the year. Our 20-30% a year appreciation wasn't sustainable. I know some builder's who's profit margins escalated to about 25% when they couldn't build fast enough. Now that things are reaching an equilibrium and homes are sitting on the market for 2-3 months instead of 2-3 days, their margins are dropping to closer to 8-10% (normal in most cases). Therefore, on a $500,000 home, a 15% reduction in margins is a net difference of $75k. Lumber prices have dropped but other materials are still currently at a premium.
It is actually a great time to buy since buyer's aren't competing in bidding wars against a half a dozen cash buyers offering over asking price while removing appraisal and inspection contingencies. Buyer's have a chance to wrap in closing costs again.
I welcome a normal 3% appreciating market again in that is a sustainable appreciation rate. For the past two years I would tell my buyers "If you want to go home sleep on your decision, that is fine. However if you do, you might not be sleeping IN IT due to the potential of multiple offers on the first day!"
Why is there so much anger amongst native Idahoans about people coming in here and buying houses?
Wages are not very high in Idaho, compared to other areas. Equity-rich people from other areas purchase the available housing, which results in a lower supply and drives the prices higher to the point where established residents can no longer afford to purchase their own home.
Wages are not very high in Idaho, compared to other areas. Equity-rich people from other areas purchase the available housing, which results in a lower supply and drives the prices higher to the point where established residents can no longer afford to purchase their own home.
Along with that, once many newcomers settle in, they'll say "Why don't you have X, Y and Z here like we did back home?" and then proceed with efforts to turn Idaho into "back home".
Why is there so much anger amongst native Idahoans about people coming in here and buying houses?
I've asked myself the same question my entire life. My family moved from California to Washington state in 1961. It was a culture shock for us, as the Puget Sound wasn't exactly the center of the universe at that time, especially for folks coming from California. I made new friends as a teenager who had no idea what a taco was, and there was only one place in Snohomish County to get pizza. But the World's Fair the following year and Boeing and the tech industries changed that quickly. But so-called natives were not happy with the progress, and they griped about people moving in and changing everything for the worst ... lutefisk was still at the top of their menu ... who needs a taco or pizza?
Thirty years later, in 1991, my husband and I moved from Washington to Boise. The culture shock was even more pronounced. At that time Boise seemed like a provincial outpost to us. But the gripe was still the same ... the so-called natives here were not happy about "equity immigrants" moving here and buying houses they themselves could not afford. But those immigrants wanted the goods and services and modern culture they enjoyed elsewhere before moving here, and their demand and influence has modernized and improved Treasure Valley immeasurably. I've been happily watching it for 31 years.
This "interloper" anger is nothing new, it's been around for years, and occurs all over the US/world, not just Idaho. I believe its primary basis is envy.
Last edited by RiverCityDweller; 09-19-2022 at 03:17 PM..
Reason: duplication
I came to Idaho 31 years ago, too. I am watching not-so-happily, as I liked Idaho the way it was back then. Now, not so much.
It's not envy to be distressed at seeing the place you live converted into the place other people used to live before they got here and decided it needed changing.
I came to Idaho 31 years ago, too. I am watching not-so-happily, as I liked Idaho the way it was back then. Now, not so much.
It's not envy to be distressed at seeing the place you live converted into the place other people used to live before they got here and decided it needed changing.
There is no way to stop growth, and with growth comes change, guaranteed. You can embrace it, live with it, or move somewhere that suits you better. People do it all the time.
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