EventsMarket News January 25, 2022

2022 Economic & Housing Forecast

Market NewsReal Estate Trends November 3, 2021

Q3 2021 Idaho Real Estate Market Update

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

REGIONAL ECONOMIC OVERVIEW

On top of having recovered all the jobs lost to COVID-19 by the end of 2020—a remarkable feat in itself—the Idaho economy continues to strengthen. Current employment levels are up by 15,400 jobs from the pre-pandemic peak. With the labor market continuing to expand, the unemployment rate was 2.9% in August (the most recent data available). Equally impressive was that the rate dropped even as the labor force grew—no easy task. New COVID-19 cases remain higher than I would like, but this does not appear to have impacted the state’s economy to any significant degree given the robust employment picture. As we move, hopefully, toward a time when the impacts of the pandemic wane further, I see nothing but an upward trajectory for the state’s economy.

IDAHO HOME SALES

❱ In the third quarter, 7,354 existing homes sold, representing a drop of 19.9% from a year ago. However, given that the country was experiencing a massive housing rebound following the outbreak of COVID-19, any comparison with data from 12 months ago is not very informative. More useful is that sales rose 22.1% compared to the second quarter of 2021.

❱ As mentioned, comparing current data to a year ago does not provide an accurate picture, but comparing it with the second quarter data shows sales higher across the board. Sales were up by double digits in every county covered by this report.

❱ Year-over-year sales improved in Shoshone County in Northern Idaho. Sales also rose in Gem County in the southern part of the state.

❱ Pending sales rose 16.5% from the second quarter of 2021, suggesting that closed sales in the final quarter of the year are also likely to show improvement from current levels. This is also supported by the fact that listing inventory has risen almost 36%. I predict more listings will lead to more sales.

A bar graph showing the annual change in home sales in various counties in North and South Idaho during the third quarter of 2021.

IDAHO HOME PRICES

A map showing the real estate market percentage changes in various counties in Idaho during the third quarter of 2021.

❱ The average home price in the region rose 30.9% year over year to $603,066. Prices were also up 8% compared to the second quarter of this year.

❱ Compared to the previous quarter, home prices were up 8.9% in both the northern and southern counties in this report. Sizable gains were seen in Shoshone County (+33.7%) and Bonner County (+22.7%) in the north, and Valley County (+22.6%) and Blaine County (+17.2%) in the south.

❱ Prices rose by double-digits across the board. Sale prices were up 37% in the North Idaho counties covered by this report, and up 27.7% in the southern counties.

❱ With far more buyers than sellers, home prices continue their upward march. As prices are rising at a far faster pace than wages, this cannot continue indefinitely. I expect to see the pace of appreciation start to slow, but probably not until next year.

A bar graph showing the annual change in home sale prices for various counties in North and South Idaho during the third quarter of 2021.

DAYS ON MARKET

❱ It took an average of 72 days to sell a home in Northern Idaho, and 31 days in the southern part of the state.

❱ The average number of days it took to sell a home in the region dropped 23 days compared to the third quarter of 2020 but rose 2 days compared to the second quarter of this year.

❱ In Northern Idaho, days on market dropped in all counties versus a year ago but rose in all counties compared to the second quarter of this year. Market time in Southern Idaho was also lower than a year ago, but it was up from the prior quarter in Valley, Gem, and Blaine counties.

❱ Homes sold the fastest in Ada and Canyon counties in the southern part of the state. Sales were again fastest in Shoshone County in the northern part of the state.

A bar graph showing the average days on market for homes in various counties in North and South Idaho during the third quarter of 2021.

CONCLUSIONS

A speedometer graph indicating a seller's market in Idaho during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Idaho’s economy appears to be powering forward and job recovery is well ahead of almost every other state. The result is clearly an increasing number of buyers who feel comfortable buying a new home, even given the dramatic price growth of late.

That said, the only factors favoring buyers right now are that there are significantly more homes to choose from and mortgage rates remain very low by historic standards. All other factors support sellers more than buyers. As such, I am moving the needle a little more in their favor, even as affordability concerns continue to rise.

ABOUT MATTHEW GARDNER

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Market NewsReal Estate Trends October 12, 2021

111,285 Reasons You Should Buy a Home This Year

The financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.

According to the latest research from the National Association of Realtors (NAR):

Homeownership is a key pathway to building wealth and narrowing the racial income and wealth inequality gap. Housing wealth (equity) accumulation takes time and is built up by price appreciation and paying off the mortgage.”

An increase in equity builds the wealth of the individual that owns it. This wealth can be passed down to future generations. The Federal Reserve in an addendum to their Survey of Consumer Finances explains:

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”

The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:

“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”

Here’s a look at how equity can build your wealth over time when you own a home.

Equity over the Last 30 Years

The NAR research reveals that the average gain for homeowners over the last five years was $139,134 and over the last 10 years was $218,505. Looking even further back in time, the article says:

“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258.”

Homeownership builds household wealth which also enables households to more easily move to the home of their dreams. As Mark Fleming, the Chief Economist at First American, explains:

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”

If you missed out on the equity gains over the last 30 years, don’t fret. Experts are still calling for substantial growth in equity over the next five years.

Looking Forward at the Equity To Come

The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home values (and therefore equity) to increase as follows:

  • 2021: 11.74%
  • 2022: 5.82%
  • 2023: 3.94%
  • 2024: 3.56%
  • 2025: 3.55%

The survey estimates a 31.8% cumulative appreciation over the next five years. Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example:111,285 Reasons You Should Buy a Home This Year | MyKCMThat’s a potential increase in household wealth of $111,285 over five years.

Bottom Line

Owning a home is one of the best ways to grow your wealth over time. House wealth can impact generations. In many cases, the largest single investment a household has is their home. As that investment appreciates in value, the financial options also increase.

Market NewsReal Estate Trends May 3, 2021

Q1 2021 Idaho Real Estate Market Update

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact us. 

REGIONAL ECONOMIC OVERVIEW

I am pleased to report that Idaho has not only recovered all the jobs that were lost following the onset of the pandemic, but total employment is now 10,400 jobs higher than the previous peak we saw in February of last year. Utah is the only other state in the U.S. that can make this claim. Having recovered all the jobs lost, and with new positions being added, the unemployment rate continues to trend lower and now stands at a very solid 3.2%—almost half the national rate of 6%. New COVID-19 cases did rise in the first quarter, but not to such an extent that is likely to negatively impact the economy. In all, Idaho is positioned very well to continue to grow.

IDAHO HOME SALES

❱ In the first quarter of 2021, 4,949 homes sold, representing a drop of 4.5% year over year. Total home sales were down 32% from the final quarter of 2020.

❱ Interestingly, sales did rise in all the northern markets compared to the same time a year ago, with impressive increases across the board. However, sales were down 32% compared to the fourth quarter of 2020.

❱ Year-over-year sales growth was positive in three of the seven Southern Idaho counties, but the areas that saw growth are all relatively small.

❱ Pending sales rose 1.4% compared to the final quarter of last year, suggesting that the second quarter is likely to show improvement. The biggest issue, however, is the lack of homes for sale: inventory levels are 48.6% lower than a year ago, and 8.7% lower than in the fourth quarter.

Continue Reading

CareersMarket NewsReal Estate Trends March 22, 2021

New Windermere Powerhouse Group Office in Caldwell

Our growing brokerage is excited to announce the new Windermere Powerhouse Group office in Caldwell. The addition brings a team of knowledgeable, experienced agents, most of whom are 2020 Caldwell Board of Realtors Top Producers. Wherever you desire to live or invest in the Treasure Valley, we’re here to serve you.

Please help us welcome our newest team members, drop by our office at 2900 Cleveland Blvd. in Caldwell and meet the Caldwell agents here.

Market NewsReal Estate Trends February 2, 2021

Q4 2020 Idaho Real Estate Market Update

 

by Matthew Gardner

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

REGIONAL ECONOMIC OVERVIEW

Along with the rest of the country, the Idaho economy and its employment levels were significantly impacted by COVID-19. Though 83,100 jobs were lost, the recovery continues, with all but 3,400 of the jobs lost having returned. With this recovery in employment, the unemployment rate, which peaked at 11.8% in April, now stands at a respectable 4.8%. Although the direction is very positive, I am continuing to temper my enthusiasm because Idaho saw new COVID-19 cases rise in December. If this continues, the pace of the job recovery may slow.

IDAHO HOME SALES

❱ During the final quarter of 2020, 7,282 homes were sold. This represents a very significant year-over-year increase of 19.4%.

❱ In the southern markets, sales also rose in all counties. Blaine County saw a remarkable increase: the number of transactions there was up 88%. Double-digit growth was seen in all counties other than Payette.

❱ Year-over-year sales growth was positive in all the Northern Idaho counties contained in this report. Boundary County saw significant growth. Overall, the region saw double-digit growth.

❱ Pending sales slowed compared to the third quarter, but I attribute this to seasonality. Listing activity was 50% lower than in the fourth quarter of 2019, which certainly frustrated would-be buyers.

IDAHO HOME PRICES

❱The average home price in the region rose a very significant 29% year-over-year to $496,679.

❱ In Northern Idaho, prices rose significantly in Kootenai County, but all counties saw double-digit gains. Southern Idaho price growth was equally impressive, with Blaine County standing out with an average home sale price over $1.2 million.

❱ Prices rose in all Northern and Southern Idaho counties covered by this report.

❱ As mentioned above, inventory levels remain an issue. As much as I would like to say they will increase early in the spring, I am afraid that may not be the case.

 

Continue Reading

 

Market NewsReal Estate Trends January 11, 2021

Incorporate Pantone’s Color of 2021 Into Your Home

by Sandy Dodge

For the second time ever, Pantone’s Color of the Year is actually two colors: Ultimate Gray and Illuminating Yellow. Ultimate Gray is emblematic of natural elements that stand the test of time, while Illuminating Yellow is a cheerful sunshine yellow, symbolizing energy and clarity.

Here are some ways you can harness this color harmony in your home.

 

Brighten Your Bedroom

With a foundation of Ultimate Gray, Illuminating yellow will brighten your bedroom, livening up the space and radiating positivity. Mix and match different furniture and accent wall combinations to get the right balance of sunny yellow and solid gray.

 

 

 

 

 

 

 

Refresh Your Home Office

Home offices have become more important than ever. As working from home continues in 2021, your remote workspace is the perfect location to add in Pantone’s Color of the Year. We all could use some added stimulation to keep our workdays going smoothly and productively. Use Illuminating to add some colorful accents or to paint your wall, balance it out with some Ultimate Gray, and let the positivity fill your home office. A modern home office with a yellow wall.

 

 

 

 

Accents In Your Living Room

Pantone’s Illuminating is a perfect accent color for your home. Incorporate this energetic sunshine yellow in your living room in the form of decorative throw pillows, blankets, and accent décor pieces like vases and curtains. Ultimate Gray is a perfect color for large furniture items and will help to balance out the tone of your living room. It provides a neutral backdrop, which gives you the freedom to decorate brightly.

 

 

Make A Statement With Your Front Door

Your front entrance plays a significant role in the first impressions of your home. What better way to use Pantone’s striking yellow than a front door makeover? Illuminating yellow presents an opportunity to bring a little sunshine to your family and guests every time they approach. Ultimate Gray as both a wall color and an accent color will help to solidify your new, strikingly optimistic front door. Accent pieces like house numbers, your mailbox, and plant pots will help create harmony between the two colors. A yellow front door against a gray wall.

Read more about this year’s color trends and how you can incorporate them into your home here: 2021 Paint Color Trends

EventsMarket NewsReal Estate Trends December 21, 2020

Giving locally in 2020

2020 is a year like no other we have seen in our lifetime. It presented a unique set of challenges for many and it is not lost on any of us at Windermere Powerhouse Group that our industry is thriving locally. We realized we were given a gift this year. We were reminded of what is truly important… family, friends, health and home. It was an opportunity to appreciate little things we took for granted. Our community is special and we wanted to do all we could to make sure that we were helping others who were in less fortunate circumstances.  

Windermere Powerhouse Group staff, agents and their clients got creative in figuring out ways to help. We hosted a Drive Thru Donation day for the Boise Rescue Mission, donated money to The Idaho Foodbank and helped seven families through Faces of Hope have a special Christmas. We all have time, talent or money to donate and strive to live that motto. 

 

We look forward to continuing and doing even more in 2021. We are grateful we have the resources to help others and appreciate the community that serves us. If you are interested in helping any of these local organizations, they are all linked above. 

Happy Holidays and Cheers to 2021.

 

Did you know?

For the past 30 years a portion of every Windermere agent’s commission has been donated to the Windermere Foundation. Having 100% participation gives us a common purpose and sends a powerful message about our commitment to the community. Housing is our business, so helping homeless families is a natural fit. We later expanded that to include low-income families, with an emphasis on helping children.

Market NewsReal Estate Trends October 30, 2020

Idaho Real Estate Market Update

 

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Idaho never ceases to amaze me! Along with the rest of the country, its economy was significantly impacted by COVID-19 and it shed 83,100 jobs between February and April. Since that time, the recovery has been palpable. Even though state payrolls contracted 10.8%, it has now recovered 69,500 of the jobs lost, leaving a relatively small shortfall of 13,600 jobs. With this recovery in employment, the unemployment rate, which peaked at 11.8% in April, has pulled back to 4.2%. Though this all sounds remarkably positive, Idaho has seen COVID-19 cases rise again, and this may slow the job recovery that appears to be in place.

 

HOME SALES

  • During the third quarter of 2020, 9,078 homes were sold, representing a very significant increase of 23.5% year-over-year. Sales were also 44.9% higher than in the second quarter of this year.
  • In the southern part of the state, sales rose in all but the very small Boise County. The 8.9% drop there represented only seven fewer transactions. Valley County saw significant growth.
  • Year-over-year sales growth was positive in all the Northern Idaho counties contained in this report, with significant growth in Bonner County.
  • Pending sales were positive relative to the second quarter, suggesting that closings in the final quarter of this year will also rise. Sales across the state are limited only by the lack of homes available to buy. Continue reading
EventsMarket News September 14, 2020

Donation Drive-Thru SUCCESS!

When a global pandemic makes your planned events impossible, you adapt!

We all watched COVID-19 bring many businesses to a standstill and leave countless people struggling with basic needs. In addition to feeling extremely grateful that we were still busy and working, we felt a desire and responsibility to help our community that was struggling. The Boise Rescue Mission Ministries, who does amazing work throughout the entire Boise area and has a facility a few blocks from our office, had additional needs for their residents and reached out for help. Their typical style of getting companies involved was not possible with the realities of COVID-19, just as our typical style of connecting with our clients, vendors and friends was not possible. So when they asked if we would be willing to try a different type of event, we were up for it.

 

On July 28th we hosted one of the very first “Donation Drive Thru” events in our parking lot and invited everyone we knew to help. Although the event was organized in a way that would keep everyone safe and healthy, we were unsure what the response would be. Many were still tentative about leaving home for non-essential errands. Our agents and staff promoted the event, giving everyone an opportunity to contribute and we are happy to say that the event was a success! Even our mail carrier stocked her van and donated when she delivered our mail.

The next day we received this note and it is with full hearts we thank the Boise Rescue Mission Ministries for all the work they do and for inviting us to be involved.

“On behalf of Boise Rescue Mission Ministries we just wanted to thank you and Windermere Powerhouse Group so much for hosting yesterday’s drive thru drive. Because of you and your team, your clients, and even a neighborhood mail lady we received over 700lbs of summer needs items, clothing, and back to school supplies.  This will certainly help us meet the needs of the many men, women, and children staying in our emergency shelters.  I look forward to offering your team a tour of our shelters so you can directly see how your donations impact lives for the good and are a piece of the puzzle to help break the cycle of homelessness, drug and alcohol addictions, and hopelessness.  Thank you all again so much. You have blessed us!” Ricky Alseth

We are proud to be part of Windermere, a company that is all in, for community. To learn more about Boise Rescue Mission Ministries and how you can get involved, please visit their website BoiseRM.org