The Boise Valley Real Estate Market in general,is a recovered Market with appreciating prices accelerated by the return of New Construction and the rising costs of Material,Labor, and Land.
The Recession of 2007-2011 decimated the Boise Valley Real Estate Market and ended the Construction Boom with many developments being taken back by the Banks and resold for less than half of their original prices.
The resurgence of the market in 2011 was the result of the areas continued growth of incoming population and the lack of New Construction leading to a 75% reduction of available homes for sale, which created the end of the buyer's market and the return of a more stable balanced Market.
2013 saw a double digit increase in New Construction Home Prices even though most New Construction was on half priced lots from the Recession.
New Homes built in 2014 will be built on the last remaining wholesale lots and will continue to rise in prices to accommodate the New Lot Prices in the New Developments currently being developed as once again we have a lot shortage.
Currently the Boise Valley has a 3 month supply of New Construction Homes and a 4 Month Supply of Existing homes in most price ranges. A Six month supply is considered "Normal", so we have been and continue to remain short of inventory, which explains why most listings are selling close to List price and multiple offers are no longer uncommon.
Conclusion:
If you are considering a purchase, or sale of a Boise Valley Home, 2014 will likely be the year to take advantage of your best economic decision. Although New Home Building costs leveled off the last 1/4 of 2013, you should expect to see a spike of Home prices in 2014, as we celebrate the last of Sub Par Interest Rates, and the end of the wholesale discount lots.
Look for the inevitable increase of lot prices in the new Developments currently under construction to add $10k-$30k to the price of the New Lots. ( Note***New Construction always sets the stage for Existing price increases as well - we anticipate another 10+% increase on the way to 2015.
