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November 29th, 2018 by Marco Santarelli
Boise Real Estate Market Predictions 2019
If you want to find investment opportunities, you need to find the sleeper opportunities. These are places where demand is growing but it isn’t so hot that you risk being burned by buying at the top of the market. And we found such a “sleeper” investment opportunity in Boise, Idaho. We’ll tell you a little about Boise. Then we’ll share 10 reasons to invest in the Boise real estate market.
Idaho has much more than potatoes. Boise is a full city, home to more than 200,000 people. Nor is that the entirety of the Boise housing market, since Boise has suburbs. The Boise-Nampa metropolitan area is home to over 700,000 people. This metro area includes Boise, Nampa and Meridian.
Boise Real Estate Market Forecast 2019
According to Zillow, the median home value in Boise is $277,300. Boise home values have gone up 15.3% over the past year and the Boise real estate market forecast is that they will rise 1.8% within the next year. The median list price per square foot in Boise is $184, which is higher than the Boise City Metro average of $164. The median price of homes currently listed in Boise is $310,000. The median rent price in Boise is $1,400, which is higher than the Boise City Metro median of $1,395.
Boise Real Estate Market Trends 2018
Boise real estate market has become an extremely alluring place to live. Positive market trends have supported Boise real estate investing too. Not just has Boise real estate market recovered its balance, it has started to flourish. With strong market basics set up, this development does not seem, by all accounts, to be backing off at any point in the near future. A strong local economy and sustained employment are giving buyers confidence – just what the Boise real estate market needs. Single-family detached homes are the single most common housing type in Boise, accounting for 65.62% of the city’s housing units. Trulia has 1,049 resale and new homes in Boise lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median rent for properties in Boise in November 2017 was $1,295 and it has increased to $1,395 in Oct 2018.
Boise has been one of the fastest growing cities in the nation and housing inventory has never been tighter, driving home prices up. Home sales have now peaked for the year, but Under Contract properties did outnumber homes for sale for much of the year as the housing shortage intensified. This will continue into next year. According to Repomandan.com, Ada County housing markets have softened slightly with the usual seasonal slow-down in sales. Canyon County markets have remained stronger into the fall with Nampa & Middleton having the tightest supply readings again this month. The long view of available homes for sale in Ada & Canyon counties really shows how extreme conditions are right now in the Boise Metro and SW Idaho housing markets. The trend has been toward fewer available listings each year as population grows and homes sell fast. On existing homes sold in October, average days on the market were just 23 in Ada and 21 in Canyon.
On Movoto, the median list price in Boise is $364,900. The median list price in Boise went up 1% from October to November. Boise’s home resale inventories is 593, which decreased 1 percent since October 2018. The median list price per square foot in Boise is $182. October 2018 was $180. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in November.
Boise Real Estate Market Summary For October 2018:
As per the market report published on WeKnowBoise.com, the median sales price for single-family houses in Boise, ID from October 1st to the 31st is $295,000 based on 464 home sales. The average price per square foot for Boise is $174, an increase of 11.54 percent compared to the same time last year.
Ada County Idaho Real Estate Trend 2018
As per the report published on Boirealtors.com, October 2018 marks a full four years of falling inventory, specifically in the number of existing homes for sale in Ada County. This lack of inventory in Ada County compared to demand is one of the primary reasons that the median sales price continues to rise compared to last year. The median sales price Ada County in October 2018 was $321,398, up 0.8% from the previous month and up 19.9% from October 2017. There were 870 existing homes for sale in Ada County in October 2018, down 15.0% from October 2017 and down 48.8% from October 2014 when the decline began.
Boise Real Estate Market Trends – Home Prices And Appreciation Rates
As per Neigborhoodscout.com, Boise real estate appreciated 24.04% over the last ten years, which is an average annual home appreciation rate of 2.18%, putting Boise in the top 20% nationally for real estate appreciation. If you are a home buyer or real estate investor, Boise definitely has a track record of being one of the best long term real estate investments in America through the last ten years. Appreciation rates are so strong in Boise that despite a nationwide downturn in the housing market, Boise real estate has continued to appreciate in value faster than most communities.
Looking at just the latest twelve months, Boise appreciation rates continue to be some of the highest in America, at 10.79%, which is higher than appreciation rates in 96.98% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Boise. Boise appreciation rates in the latest quarter were at 4.33%, which equates to an annual appreciation rate of 18.46%.
10 Boise Neighborhoods With Highest Appreciation Since 2000: By Neigborhoodscout.com
Best Neighborhoods in Boise, ID: By Realtor.com
Boise Real Estate Market Trends – Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Boise is 0.2%, which is lower than the national value of 1.1%. At the height of the collapse, when the U.S. national foreclosure rate topped out at 4.5 percent, Boise never exceeded 4%. In recent years, it has stayed at least 2 percentage points below national averages for each of the past ten years. On RealtyTrac, there are currently 129 properties for sale in Boise, ID that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 518. In October, the number of properties that received a foreclosure filing in Boise, ID was 173% higher than the previous month and 17% lower than the same time last year. Home sales in Boise for September 2018 were down 100% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Boise was $0. The median sales price of a foreclosure home in Boise was $0, or 0% higher than non-distressed home sales.
Should You Invest In The Boise Real Estate In 2019?
The Boise area is well-regarded, but that’s not reason enough to invest in an area. Boise real estate is also some of the most expensive in Idaho, although Boise home values don’t compare to the most expensive real estate in the U.S. We’ll focus on practical reasons you’d want to buy investment properties in Boise and give you the hard facts to justify those recommendations.
Here are the 10 reasons to invest in the Boise real estate in 2019:
1. The Student Market
The Boise metro area is the largest population center in Idaho and home to the state capital, so it is the largest student market in the state. In fact, Boise State University is located here. So are satellite campuses of the University of Idaho ad Idaho State University. Boise Bible College is also located in Boise. This provides significant opportunity for those who want to invest in the Boise real estate market and cater to college students.
2. The Lure of Jobs
One factor propelling the Boise real estate market is the availability of jobs. In Boise, population and job growth triple the national average. Boise is home to far more than lumber and food processors, though it is home to the headquarters of Idaho Pacific Lumber Company. The area’s largest private employer is Micron Technology, though Hewlett Packard and Simplot employ thousands here. There are a number of manufacturing facilities here providing more stable and better paying work than you could find in the seasonal tourism and irregular agribusiness sector. The university and state government are major employers. Boise has low unemployment overall, currently hovering around 3%. That is two points below the national average.
3. The Surprisingly Strong Rental Market
The average wage in Boise is a dollar an hour higher than the state average, so moving there gives you a pay hike. However, Boise has generally low wages compared to other metro areas. The average pay rate is about $40,000 per person. While housing is cheaper than in states like California and Oregon, pay is lower, too. This means many people must rent. A healthy vacancy rate is around 5%.
In Boise, it is around 2%, and in the cheapest units, 1%.This has led to a flood of new apartment construction in the Boise housing market, but higher than average construction costs in Idaho slow down relative to demand. It certainly didn’t help local renters when there was no apartment construction at all in 2008 while new construction lagged in the last years of the Great Recession that really only ended in 2016. That is why rental rates went up 7% between 2017 and 2018.
4. Highly Regarded Schools
Boise has the top ranked school district in the state. And you get these high quality schools along with cheap housing, high quality of life and short commutes. If you’re one of the many people fleeing the high crime, unemployment and regulatory burden of California, that’s an ideal combination.
5. An Excellent Overall Quality of Life
Any town can say they have a great atmosphere or quality of life, but Boise makes national publication’s lists of best places to live – repeatedly. In 2008, they were listed second in Forbes on the best places for business and careers. In 2014, Time Magazine listed Boise as the best city “getting it right”. In 2018, Boise ranked 46th in Money magazine’s best places to live list. Boise’s ranking was unusual in that it was a large city and state capital, while most cities that made this list were the suburbs of big cities or college towns. US News and World Report listed Boise as the 23rd best place to live and 66th to retire in the 125 biggest metro areas United States.
6. The Outdoor Recreational Opportunities
This is such a hallmark of Boise that it can’t be considered just one more aspect of the quality of life. Boise’s location puts you in easy reach of the surrounding wilderness, while the local climate means people bike and raft in the summer and ski in the winter. Rock climbing, kayaking, hunting, golfing, horseback riding and myriad other activities attract people as tourists (providing significant local employment) and keep residents from considering every leaving.
7. Demographic Momentum
The Boise housing market is driven more by internal migration than international migration. The high price of real estate in Utah has driven a steady stream of Mormons into the Boise real estate market. Their average family consists of three children, 50% larger than the U.S. average. The state is attracting refugee families from the West Coast’s high taxes and housing costs, as well, as they seek a better place to start and raise families. That’s why many in Boise openly mock Californians, though it won’t keep them from buying in the Boise housing market. This means that the Boise market will see continual growth from demographic momentum for years to come.
8. Low Taxes
Boise has very low taxes, especially compared to the West Coast. The progressive income tax tops out at 7.4%, while the sales tax is about 6%. You pay less for utilities and car insurance, too. For investors, the average 1% property tax rate is a bargain, especially when you factor in the low cost of housing. The average property tax bill is around $2300. The national average is 1.2% of the home’s assessed value and an annual property tax bill of $3000, though in places like New Jersey and New York, it could surpass $10,000.
9. Affordable Real Estate for Buyers
One of the attractions of the Boise real estate market is the sheer number of affordable large single family homes. You could find a four bedroom home for around $200,000, roughly $100,000 below the national average, several years ago. With increasing demand, homes are still a deal at around $250,000.
10. Decent Return on Investment
The median rent in Ada County where Boise is located is around $800; you get a two bedroom apartment for that. You could of course charge much more for a large single family home, while affordable properties and low taxes give you a decent ROI on the investment. Slow and steady demand also ensures that your investment will grow in value; the Boise housing market has seen appreciation of around 10% year over year. We already mentioned how the high demand for rentals relative to supply is keeping rental rates elevated, and the slow rate of construction means that rental rates and property rates aren’t going to fall in the foreseeable future.
Buying Investment Properties In Boise, ID
If you are a beginner in the business of real estate investment, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest US real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. The Boise real estate market is a sleeper market, seeing slow but steady demand that the local housing market can’t quite meet. The best opportunity is in rentals catering to those who can’t pay a lot in rent but want to be close to major employers.
What Makes Real Estate Investing In Boise Attractive To Investors?
On Realtor.com, there are 958 homes for sale in Boise, ranging from $14.5K to $7.8M. Additionally, there are 227 rentals, with a range of $459 to $3.5K per month. In October 2018 the housing market in Boise, ID was a seller’s market, which means there are roughly more buyers than there are active homes for sale. Seller’s markets are generally more advantageous for sellers rather than buyers.
Some Other Markets Where You Can Buy Investment Properties
Another good market is the Philadelphia real estate market, which offers an ideal mix of affordable properties you can snap up and a large population of renters who aren’t going to buy homes any time soon. You won’t face the same hostility as a landlord as you might in New Jersey or New York, whether renting to long-term tenants or tourists. While other major cities have waged war on AirBnB and other short term rental sites, Philadelphia realizes this is a good way to cater to tourists and help local home owners earn income.
This is why Philadelphia stands out as friendly to short-term rental sites like AirBnB. One of the few conditions to meet is payment of the 8.5% tax on all profits and you don’t make the property not look like a home. Note that these rules apply to primary residences. As a non-resident landlord, you can rent out homes via AirBnB, too, but you have to apply for a visitor accommodations variance. Multi-family housing can also be rented out via AirBnB in Philadelphia if you fill out the right paperwork.
Similarly, the San Jose real estate market forecast is that it is going to be a hot investment destination for new real estate investors. San Jose real estate market trends indicate an increase of $140,000 (16%) in median home sales and a -1% drop in median rent per month over the past year. The average price per square foot for this same period rose to $697, up from $600. Big Tech makes San Jose one of the hottest real estate markets in the country. While the intense pressure is driving some companies and people out, the strong financial numbers continue to make the San Jose housing market a good place to invest.
The unique redevelopment opportunities should not be overlooked. In January, 2018, Redfin ranked the ten hottest neighborhoods in the United States. Nine of the ten were in San Jose. When single home prices fall from 1.2 million to 1 million, homes now sit on the market for several days instead of being snapped up immediately. The median price for a new home or condo was $750,000 in 2018, down from a record of nearly $800,000 a few months prior. If you want to invest in the San Jose housing market, you should do it now while things are – relatively speaking – affordable.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing profitability of your real estate investments.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.
Affordable large homes
Quality of Life
Outdoor recreation https://www.estately.com/blog/2013/10/32-things-to-consider-before-moving-to-boise
Strong rental market
Market Trends, Forecast and Reports https://www.zillow.com/boise-id/home-values https://www.realtytrac.com/statsandtrends/id/ada-county/boise https://www.trulia.com/real_estate/Boise-Idaho/market-trends https://www.repomandan.com/Pages/MarketMonitor.aspx https://www.fortunebuilders.com/boise-real-estate-and-market-trends https://www.movoto.com/boise-id/market-trends https://www.realtor.com/local/Boise_ID/housing-market https://www.neighborhoodscout.com/id/boise/real-estate https://www.forbes.com/sites/ingowinzer/2016/09/20/is-it-time-to-invest-in-the-mountain-states/#200f3b856730
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