The Boise area real estate market seems to be doing what other mid to large sized metros are doing across the nation-making an astounding comeback. Both Ada and Canyon counties have experienced a thirty percent surge in housing prices this past January. In fact, 90 percent of U.S. cities posted home price gains in what has become the strongest year-over-year increase in seven years, thanks to a dwindling supply of lower priced homes and foreclosures, according to the National Association of Realtors.
Across the nation in the fourth quarter of 2012, the national median existing single-family home price rose 10 percent to $178,900, which was the strongest year-over-year price increase we've seen since the fourth quarter of 2005.
In some areas, the median sales price for a single family home in January hit $185,909, which is about a 35 percent hike from January 2012. In the Nampa, Idaho market, the median price was $107,202, approximately 31 percent higher.
Economists site an improving job market and rock-bottom low interest rates for the rise in prices as heightened demand put more pressure on a seemingly tightening supply of homes. NAR Chief Economist Lawrence Yun said, "home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates." He went on to say, "our population has been growing faster than overall housing stock, so supply and demand dynamics are very much at play."
Another trend that's hitting many housing markets, is a withering supply of homes for sale, which has fueled the return of multiple offers from buyers. And what's more? The metro area has received the achievement of being one of the worst places to buy a foreclosed home, according to the national real estate data company RealtyTrac.
RealtyTrac came up with these results based on measures of supply of foreclosed homes and the average associated savings. While there are good deals to be found with foreclosures in the Boise market, having the distinction of worst place to buy a foreclosure is a sign that our market is on the mend. 2012 saw the market steadily improving, and now we're seeing that the majority of home sales are of traditional homes, not foreclosures. And as a result of a low home inventory, construction of new homes is on the rise.
In summary, you'll find that the market is experiencing greater demand, a continuation of really low mortgage interest rates and a turn to new construction for many prospective buyers.