There are several times in one’s life when adopting a temporary housing or rental mentality is appropriate. However, home sellers in Boise should be aware that, while this was once the trend, these people are now more focused on finding permanent housing and increasing the number of buyers vying for homes in the Boise real estate market. Part of this trend may be attributed to the fact that many companies’ business models are now extending to home-based jobs. Another trend that has emerged is that more affluent homeowners are changing their investment strategies to keep up with the economy, buying second homes for retirement earlier than expected, resulting in a shortage of available properties on the market.
Riding the Wave
The backlog of completed units has yet to be reached, let alone the boom in demand that has arisen since the pandemic, like a wave still rolling from the 2008 national trend of declining new housing construction. Low interest rates are also encouraging buyers who may not otherwise be able to afford as much housing to enter the market. Changes in federal tax guidelines, which mean they can no longer deduct their property taxes, have also caused a migration of buyers from high-tax states.
In October of 2020, the National Association of Realtors announced that there were fewer homes for sale than ever before. There is just over a two-month supply of inventory available if no other homes are listed on the market right now. The number of homes mentioned by sellers who would usually be making an upward step in housing, such as moving up from a starter home, has also slowed. Many homeowners tend to stay put until they have a better understanding of how they are involved and have settled in before losing what they have. These factors have combined to create an epic seller’s market, with rising demand and a scarcity of affordable housing units driving up prices. Continue reading to learn what Boise home buyers should know about the [market city] real estate market.
The Trouble With Bidding Wars
Although a seller’s market may appear to be ideal, Boise home buyers should be aware that bidding wars have an effect on the Boise real estate market. The issue arises when borrowers bid higher than the home’s appraised value while staying below the usual 80 percent loan-to-value ratio. Should your customers get involved in a bidding war, you risk losing them. They might not be able to afford the higher monthly payments and principal, let alone the added expense of mortgage insurance. And you may not have enough cash on hand to cover the discrepancy between the appraised and final purchase price.
What Goes Up Must Come Down
Anything nice has to come to an end. Prior to the pandemic, housing prices had started to rise and were continuing to rise. Many first-time homebuyers cannot afford the average home in today’s market due to the dramatic rise in listing prices. Home sellers in Boise should be aware that the current price trend in the real estate market in Boise cannot be sustained indefinitely, and the market may crash. According to signs, foreclosures, which are currently on hold, would increase among lower-income households. At this period, approximately 2.75 million mortgages are in forbearance under the CARES act’s security, with approximately 10% of all FHA-backed mortgages in arrears for more than three months.
Avoiding the Risks of Selling
Sellers who wait too long to sell risk losing out on a once-in-a-lifetime chance to strike when the demand is at or near its height. When it comes to traditional listings, a large number of people actually do not want to take the risk of negotiating or doing business with strangers. Because of the possibility of potentially sick customers passing into their homes during the pandemic, many people would rather not have showings. With many people’s stress levels already at an all-time high, the added stresses of selling a house, particularly when school and work are done from home, can be overwhelming. is much too much to worry about. Homeowners in Boise should be aware that there is another choice for selling their home on the Boise real estate market: selling to a direct buyer like Boise House Buyers.
Are you interested in learning more about what Boise home buyers can know about the Boise real estate market? We are here at Boise House Buyers to listen and assist you with all of your problems. With reasonable rates, simple, easy-to-understand contracts, and prompt closings. Working with Boise House Buyers means you won’t have to wait any longer to sell! Boise House Buyers will guide you through the process step by step and assist you in deciding what is right for you! Please give us an email or call Boise House Buyers at (208)314-1350 right away!