In this video, Realtor John West, answers a common question we have been hearing a lot lately, "What is going on with the real estate market in the Treasure Valley?"
Houses are selling fast, rents are at all time highs, and real estate is a hot topic again, but are we headed towards another housing bubble?
At West Real Estate Group, we believe in offering Better Education and More Communication to our clients. Here is a short video to explain our current housing market here in the Treasure Valley:
In Boise, Idaho and surrounding areas, there are four main factors affecting our market:
1. High Demand
No one will argue that the Treasure Valley is a great place to live. We are constantly ranked in the top spots for best places to move to and our secret is out. People are flooding into the Treasure Valley from all over the nation and this relocation activity is part of why we are seeing such high demand for housing.
2. Low Inventory
After our market crashed in 2007, builders stopped building homes and apartments. This gap in building new construction caused us to be behind in meeting the growing housing needs for our area. Home builders are quickly trying to meet the demand of our current market, however they are still behind.
3. High Rents
Because of the demand for housing, the large amount of growth in our area, and the lack of available homes for sale, landlords have been able to charge higher monthly rents. If you can't find the house to buy that fits your needs or have 6-10 months to wait for a new house to be built, you may have to rent and pay a premium to do so.
4. Low Mortgage Rates
As the market continues to see healthy improvement, lenders have been offering low mortgage rates to keep home buying affordable and attractive. We often find that many of our buyers are paying less for their mortgage payment on their home than they were paying in rent. This factor is also causing some of the high demand for housing.
With all this demand for housing, some fear that we might be heading for another crash, however evidence that economists see in this market is much different than the factors that caused the crash nearly ten years ago. Some of the causes for that crash were high speculation, loose mortgage loan approval standards, and other factors that were not based on healthy and sustainable conditions.
In summary, the current housing market in the Treasure Valley is alive and well. It is still a great time to take advantage of low housing innovatory and sell your home or buy a new home before prices raise further. Our team would love to help answer any questions you may have.
Give us a call at (208) 501-8200 today!
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