Even though the weather can get a little bit extreme, the agricultural state is renowned for its amazing beauty, natural resources, many attractions and a myriad of things to do in Idaho whether you live there or you’re just passing through. When thinking of owning a home in the US, it is worth noting that Idaho is top of the list when it comes to the best states to own a home. This is based on the fact that homes are highly affordable in general, while the foreclosure rates are incredibly low compared to other states.
For this reason, the real estate industry in Idaho is quite blooming and has over the past few years been on the radar of many investors and would-be homeowners alike. Real estate property has been seen to be up for grabs, especially in some of the major cities such as Boise, Meridian, Idaho Falls, Eagle, Pocatello, and Twin Falls. Jeff Stewart from Homes In Meridian says that Idaho is quickly becoming a world recognized location known for its amazing outdoor lifestyle. One way to capitalize on outdoor living is to include a patio with dining furniture in your backyard. But should you or should you not invest in real estate in Idaho?
Here are some things to know about the status of real estate in Idaho plus what to expect this 2019 going forward.
Price is always a key factor when it comes to the real estate business. In most cases when prices go higher, most homeowners and investors are encouraged to sell their property due to the high potential for profits. This seems to have been the case in part for Idaho’s real estate. In 2018, for instance, the overall median sales in Ada County stood at $314,000, which was clearly an increase considering that it was $265,990 in 2017. If you do the math, this was close to an 18% gain. Another good example is Canyon County, whose median home price went up by 20.5% from $180,000 in 2017 to $216,900 in 2018. Sales for homes in places such as Meridian and other places have also been seen to increase.
If statistics were anything to go by, the curve has been like so for about 4 years now since 2014. Wise investors can, therefore, clearly see that investing in real estate in Idaho is not quite a bad idea.
Amid the skyrocketing prices of homes in Idaho as described above, you would expect sellers to be highly motivated and the supply to be high. Well, the current case is the exact opposite. Taking December 2018, for instance, only 498 homes for sale existed. According to the Intermountain Multiple Listing Service, this number is relatively low compared to the 537 homes that were available for sale in December 2017. According to expert realtors, a balanced real estate market that favors neither buyers nor sellers provides at least 4-6 months of supply. The numbers registered in December for used was clearly not enough to supply a single month of sales. Nonetheless, the supply of new homes was enough to last at least 4 months.
If you did some bit of business studies, you have enough to know that a decrease in supply is always accompanied by or leads to an increase in demand. The property market has been in quite high demand over the past few years in Idaho. The high demand, in this case, can be depicted by the high numbers of total sales even with the increasing prices of property. In Ada County, sales of new homes increased by 22.4% in 2018 compared to 2017 while in Canyon County, more than 4,800 homes were sold in 2018 compared to the 302 homes sold in 2017. Nonetheless, there was a significant decrease in sales of used homes in Ada County over the same period. This means that there is a higher demand for new homes as compared to older or used homes. If the demand remains high, home prices are also expected to remain the same, according to most real estate experts in the state. However, this is not to forget that supply will also affect pricing, which brings us to the next important point.
From above, it is obvious that there’s a huge gap in Idaho’s real estate market. The low supply of homes for sale is due to the fact that used homes available for sale are scarce. If you guessed right, this can only be solved by one thing – building more homes and availing them for sale. This is something that contractors have actually noted and are working tooth and nail to fix.
Idaho’s real estate is clearly a rich gold mine that you can put your money on. If the numbers and the expectations stay the same, it can be a wonderful place to invest in property as well as real estate stocks. If contractors are able to amp up the supply, homes will also become more affordable and more available for future homeowners in the ‘Gem State’.