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 Powerhouse Group agent at 208-920-5966.
It appears as if the significant COVID-19-induced contraction in employment Idaho experienced earlier this year is behind us (at least for now). Statewide employment declined modestly in March, but April was the real shock, with the loss of more than 78,000 jobs in the month, a decline of 10.2%. However, the economy appears to have turned around remarkably quickly, with a solid increase of 24,300 jobs in May. Idaho did see COVID-19 cases rise significantly in June, but the latest data appears to suggest that the trend has started to reverse. If this continues, I am hopeful more of the jobs lost will return.
- During the second quarter of 2020, 6,264 homes were sold, a drop of 10.6% when compared to the second quarter of 2019. However, I would note that sales rose 22.2% compared to the first quarter of this year.
- In the southern markets, sales rose in small Valley County, but dropped in the rest of the counties covered in this report compared to the same period a year ago.
- Year-over-year, sales growth was negative in all of the Northern Idaho counties contained in this report. The most substantial drop was in Bonner County, though the decline there amounted to only 37 units.
- Pending sales rose a significant 18% over the first quarter of the year, suggesting that closed sales will rise in the third quarter.
Over the past few weeks, we have seen countless examples Windermere Powerhouse Group agents embodying what it means to be All In, For You. We love what we do, are finding creative ways to connect during this time of social distancing, we are supporting local businesses, reaching out to friends and family via FaceTime and Zoom. We are adapting so we can continue to help our clients move their lives forward in these uncertain times.
Please join Windermere Real Estate as we fund the Ready, Set, Go…..Backpack Drive. Our goal is providing 500 backpacks, stocked with school supplies, so ALL students get to experience back to school EXCITEMENT! We created a Go Fund Me page and are asking our friends to help. Let’s make the first day of school a GREAT DAY for EVERYONE! Thank you in advance for helping. Be sure to designate Community Schools in the drop down menu of the donation section and put Backpack Drive in the comments.
So how did this partnership begin?
It started back in 1984 when every Windermere closed its offices for one day to help make a positive difference in their local communities. Thirty-five years and more than one million hours of community service later, Windermere offices across the country continue this tradition.
In 2018 we were introduced to the Community Schools and last June the Windermere Powerhouse Group team along with our other local Windermere offices spent the day at Whitney Community Center, a member of the Boise Community Schools. We pulled weeds, cleaned up their garden and create a painted rock landscape to achieve the goal of a clean and bright school welcoming the students back in the fall. It was an amazing day painting rocks with students and getting to know the incredibly generous staff members. We knew we were going to continue working with them throughout the year.
What we learned
Like many of you, we weren’t familiar with the Boise District Community Schools and the services they provide. As real estate professionals, we are familiar with the differences of the current housing market compared to twenty years ago. However, many of us were shocked at the drastically different demographics of the school district over the last 20 years. We met some homeless students in June, happily painting rocks with us, excited that we wanted to help their school. We learned later that 600-800 children are homeless or unaccompanied, meaning they have no parent or guardian. And 49% of students qualify for the free or reduced lunch program.
Boise faces all the challenges of any growing urban area and The Community Schools is a unique program making a difference in addressing those challenges. It’s both a place and a set of partnerships between the school and other community resources. It has an integrated focus on academics, health and social services. Youth and community development as well as family engagement leads to improved student learning, stronger families and healthier communities. They provide resources beyond what we typically think of in school including a food pantry, dental check-ups, coats & boots, weekly English classes, parental education, job seeking and resume services. It is essentially the community so many people are striving to be part of.
The Ready, Set, Go….Backpack Drive is the next urgent need. The goal is ensuring that all students get to go back to school on equal footing with their peers, with a new backpack full of supplies. Windermere real estate decided this is a great opportunity to help and we are encouraging you to help too! Let’s send 500 kids back to school with confidence and excitement to start the new year!
“How’s the market?” is the one question that Windermere Agents get asked most. It is the same question we ask when we meet an agent from another state. It’s a simple question with a very complex answer. Windermere Powerhouse Group knows how important it is to understand our real estate market and how curious everyone is to know what is going on in our community. So we created a market snapshot and a detailed report for every area of the Treasure Valley that will be posted monthly here on our Blog. This month we are featuring Ada County Existing Home Sales (i.e., greater than 1 year old). Links for other areas and detailed reports are below.
1. Spring and summer are historically the seasons when market activity increases. More homes are available for sale, and under the current market dynamics, demand immediately follows. Total Year-to-Date (YTD) 2019 transactions are down from 2018, and the shortage of supply is a major contributor. As you’ll see below, overall prices continue to increase yet days-on-market remain at historically low levels. If you are interested in buying or selling your house now is the perfect time to take action.
2. Existing home prices have risen every year since 2011 and have taken a substantial increase in the last several years. Average prices for Ada County existing homes have continued to climb in 2019, currently up 3.6%. Windermere Real Estate’s in-house economist, Matthew Gardner, forecasts 2019 Home Price growth to be 4.5% nationally, 8.9% in Ada County and 8.1% in Canyon County. So it’s actually a safe time to buy or sell a home too. Gardner forecasts the number of Ada County households to increase by 11.1% over five years, while Canyon County by 13.3% growth.
3. Last March, nearly half the existing Ada County homes that sold closed “At” or “Above” the original asking price. However, that trend varies greatly throughout the Treasure Valley. The graphs above show a snapshot of the Ada County averages compared to the North End and Boise Bench. There are numerous factors affecting a home’s price, and it’s evident that overpriced houses cost their sellers 2-3 mortgage payments last month. Specific neighborhoods have their own unique characteristics, and the REALTORS® at Windermere Powerhouse Group each possess the expertise and data to lead your next real estate transaction.
If you’d like more detailed information, have interest in learning more or would like a thorough valuation of your current home, we’d love to hear from you.
Specialized Areas and Construction Types