It is too early to tell how the real estate market in Boise, Idaho, will react to the coronavirus pandemic and its aftermath, but, so far, things are looking pretty good and realtors are confident the market will soon be back to normal. These expectations are based on two key factors – high demand and low mortgage rates.
March saw record-setting prices
The Treasure Valley’s housing market is still hot and the real estate sector adapted quickly to the special conditions imposed by the shelter-in-place order, mitigating the effects of the crisis.
With people self-isolating, virtual tours became the norm, replacing in-home visits, so both sellers and prospective buyers could stay safe.
Sales figures for March were up as compared to the numbers for the same month last year, and real estate agents reported record-setting prices in both Ada and Canyon counties, which is remarkable all things considered.
More than two-thirds of the homes that closed in March were under contract before the “stay at home” order was announced. 932 homes were sold in Ada County in March, and the price for a median single-family home rose to $365,645, up 8% from $336,110 the same month last year.
Downtrend expected to be temporary
However, the “stay at home” measures and the economic uncertainties had a significant impact on the market in the first two weeks of April, with real estate agents reporting the number of houses going under contract falling 20-30%. This slump is going to be reflected in market reports for the next couple of months, but overall the downtrend is not expected to continue, with things slowly going back to normal.
Probably, figures will continue to be low for the second quarter, there’s some uncertainty as far as the third quarter is concerned, but business will definitely pick up for the fourth quarter of 2020.
Experts point out that all recessions in the past few decades, including the 2007-2009 crash, followed the same pattern. A short term decline of around 30% in market transactions, followed by a return to pre-crisis business levels within one year. All-in-all, the impact of the crisis should be minimal on the yearly figures.
2020 will be a good year for sellers
Experts predict 2020 is going to be a good year for sellers in the Treasure Valley, as demand outweighs the supply by a large margin. The number of homes on the market is the lowest in 20 years, while people from all over the country are continuously relocating to Boise, Idaho, leaving large coastal areas where housing prices have become ridiculously overpriced.
As far as new constructions are concerned, the temporary shut-down and social distancing policies will increase by at least two months the time needed to complete new projects. With fewer new units entering the market, the demand for existing ones will increase even further.
Given the current economic situation nationwide, interest rates will continue to remain low for the foreseeable future, making loans more affordable.
As a result of the crisis, prices went down between late March and early April, as there was a 10% decline in demand, even with the new digital-viewings of the coronavirus era. Many of the listings showed mark-downs, especially for the higher-end housing segment.
Nevertheless, as the nation recovers from the shock of the pandemic, things are quickly returning to normal and market analysts predict Boise, Idaho, will outperform other major cities in the western part of the country.