2014 Market Trends Report

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Was 2014 a good year for homeowners?

“What happened in real estate in 2014 and what can we expect in 2015?”

This time of year, we’re answering questions about the real estate market from a wider perspective, that looks beyond the current month-to-month stats and examines the overall market trends in Boise and the nation. In short, 2014 was a good year for homeowners.

In fact, 2014 was the third year in a row that I’ve had the pleasure of communicating good news about pricing and equity for homeowners. This has enabled owners the freedom to move around a bit. The average price was up about 6% this year, 17% last year and 13% the year before that.

This comes amidst other good news statistics, as well as ongoing and interesting reactions to the Great Recession. For one, there are more renters and fewer homeowners. Data suggests a seeming tentativity to enter home-ownership, despite low interest rates, recent government incentives and an overall upward trend in pricing.

To illustrate 2014 in terms of real estate housing market trends, and divulge what to expect in 2015 we’ve pulled the data below from the 2015 Idaho Real Estate Summit hosted by the Ada County Association of Realtors, and of course, our own client experiences.

Boise’s housing market was not far from the national housing market trends, which are show in this slide from the 2015 Idaho Real Estate Summit. Source: Ada County Association of Realtors.

 

Jobs have the biggest impact on any local real estate market, including the housing market here in Boise. Job growth trends in Boise have been favorable, mirroring the national trends, according to Lawrence Yun, the Chief Economist and Senior Vice President of Research at the National Association of Realtors.

Household net worth also is at an all-time high, reports Yun. Homeowner households tend to be 31-46 times the net worth of renter households, however our rate of homeownership is decreasing. When asked to make forecasts, Yun obliges – his predictions are below the job growth chart.

What’s next in 2015

Lawrence Yun suggests we’ll see:

  • More jobs, as well as a slightly increasing job-quitting rate
  • Manageable mortgage rates, increasing slowly and reaching 6% by 2016
  • Population growth and a pent-up demand for housing
  • Record high household wealth
  • More starts, sales, growth in prices, and transitional/erratic lending policies which should return to “normal” by 2016
  • Improving business opportunities in the commercial sector

On a more immediate and local scale, we’ve seen a winter slowdown following the previous period of rising home prices. Inventory requires patience from our buyers (us too, but it’s my job to be patient). We’re reaching out to sellers, in part because we need some inventory to present to our buyers.

Housing Market Trend Update

 UPUpward Market Trends

  • Sales in 2014 were up in all price points above $160,000, when compared to the previous year
  • Median home prices have been on the rise in Ada County over the past year
  • Jobs are the biggest factor influencing the housing market and jobs in Boise, and the nation have been on the rise
  • Renter households also are on the rise nationwide
  • Existing home sales
  • Boise area housing permits

    Boise real estate price charts

    Source: Ada County Association of Realtors, as presented at the 2015 Idaho Real Estate Summit

 

Arrown indicating downward market trends in Boise's housing marketDOWN

  • Sales in 2014 were down in all price points below 160,000, when compared the the year prior
  • Now, and at the end of 2014, inventory has been down. This can be typical this time of year.
  • Homeowner households and the overall rate of home-ownership decreased alongside an increase in renter households

 

Static Boise real estate market trendsSTATIC

  • There is pent up demand for homes priced below $160,000 – this is a trend that first started being noticed back in 2006.
  • America’s Gross Domestic Product has been low – below 3% for nine years now. This was among the market indicators Lawrence Yun pointed out at the 2015 Idaho Real Estate Summit.

Thanks for reading. All that data leaves me ready for a break to go skiing! I’d recommend you do the same – it’s a beautiful time of year to take off for a spontaneous Bogus Basin visit. If you’re hungry for more market info, or an analysis of how these market trends are affecting your home’s value, please don’t hesitate to give me a call!

Sincerely,

Shana Moore, Your Local Boise Real Estate Professional and source of real estate market trends in Boise Idaho

 

 

Shana Foster Moore,

Your resource for Boise market trends (and more)

 

 

 

 

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