Real Estate Trends In Idaho You Should Know About
In the real estate industry, trends are important to all investors to help them abreast of the latest happenings in the market. These trends are even more important when you’re looking to perform some trade in the real estate market soon.
In Idaho, for instance, the real estate business is looking pretty good even though a lot has happened recently, including the pandemic. The three major cities in the state – Boise, Nampa, and Meridian – have enjoyed a 10-year growth due to high demands, a strong economy, and highly competitive prices.
Moreover, the following are the trends to know in today’s real estate market:
1. A Steady Rise in Home Prices
Prices are still increasing despite the tough economy and times. While the growth is not large – at less than 1% – it still counts for something for real estate investors. Also, these growth signals have surprisingly witnessed spikes in the months ridden by the pandemic.
These steady growth patterns are both beneficial to the buyer and the seller. To the seller, there’s a guarantee of increased profits but also fewer offers and higher competition between sellers. To beat the competition, sellers must ensure to highlight the unique features in their properties to potential buyers and set competitive prices with counterparts.
For a buyer, a steady rise in market price means that real estate investments are still worthy. However, before any investment is made in real estate, due diligence must be carried out. Buyers are also advised to ensure that they stick to a budget when they’re looking to buy a property in a slightly more expensive market.
2. Lower Interest Rates on Mortgages
The interest rates on mortgages are significantly lower. One reason for this is that the federal reserve slashed its interest rates by half a percentage point in the face of the pandemic. However, even before the final impact on the interest rates, they had been trending lower annually.
Low mortgage rates are good news for both buyers and sellers. Lower interest rates for sellers means buyers will be in a rush to buy homes. These contribute to a shorter time for homes being on the market.
For buyers, a lower mortgage means a better financing option and more affordability. As a start, look here for good property buys. It also means people who own properties can easily choose to refinance their mortgages to take advantage.
3. An Evolution of Real Estate Technology
Technology is gradually finding its way into the real estate industry. The recent years have seen more real estate stakeholders move their businesses online or at least dualize it – both physical and online. Business websites and multiple listing services are only a few of the examples that have slid into the real estate world.
Many real estate investors are beginning to incorporate technology into their structures. Technology compliant homes are called smart homes, while the main technology framework is called the Internet of Things (IoT).
The gradual influx of new technologies into homes has made it essential for all real estate stakeholders to be involved in its evolution. Features in smart homes include state-of-the-art gyms, interactive home appliances, and integrated home structures. Other new technologies are shaping the real estate world, include social media, real estate management software, and blockchain.
4. The Demographic of Homeowners is Younger
Recently, in Idaho and much of the United States, more millennials, between 22 years (born in 1998) and 40 years (born in 1980), are rising to become the latest homeowners.
These groups of potential homeowners are digital natives born to take advantage of the internet’s opportunity. Thus, most realtors who don’t know how to take advantage of the latest technologies will lose out on this group of homebuyers.
This group of buyers is also generally more concerned about the less significant details of a home than the older generation. Details such as proximity, accessibility, stunning views from the home are taking priority over square footages, and pricing.
Due to their access to a wide range of online resources, millennials tend to know what they want, and a host of the terms associated with real estate. Thus, any realtor who isn’t well versed in their knowledge of this field will not get much out of this emerging group of home buyers.
5. The Gap Between Buying and Renting Home Is Narrower
The gap between the choice for owning or renting a home is considerably narrower. Rents have increased in the last year by 4% while house mortgage payments have reduced slightly. The favorable state of house purchases is due to the lower mortgages, as mentioned earlier.
Now, with the rental prices shooting up in most parts of Idaho, more buyers are purchasing homes to split them into individual rental units. Thus, in addition to the initial benefits of buying cheaper, homeowners get to make money back quickly. Also, such homeowners, while looking to make some fast money, are more likely to set a little more affordable rent for their tenants.
6. Foreclosure Numbers Are Still Pretty Low
The real estate market in Idaho has known growth over the years. This growth in the market has also been evidenced in a lack of foreclosure crisis; foreclosure has been ever so rare in the Idaho state up till now.
Currently, there are concerns that the pandemic-induced economic distress within families across the state might cause an upsurge in foreclosures in the coming months. A significant impact of foreclosures on the real estate market in Idaho is still very far out. This is because of the influx of more forbearance programs for homeowners.
In the face of an unavoidable increase in foreclosure statistics, Idaho is not likely to rival any of the peer states for a long time.
The potential in Idaho state’s real estate market makes it a hotspot for investors. Buyers can take advantage of lower mortgage interests to buy homes, while sellers can hope for quicker sales for the same reason.
The demography of homeowners has drastically reduced and they’re more attracted by the minor details that might help sellers make a house sale faster. Sellers can make maximum profits with the right marketing strategies implemented.
All real estate stakeholders are expected to take advantage of technology as an emerging trend in the industry. Buyers can make the best of their purchase by ensuring due diligence before investing in any real estate. With the gap between renting and homeownership is getting smaller, it’s becoming a better option to buy than rent.