Real Estate Blog

MORE INVENTORY IN ADA COUNTY HELPED MODERATE HOME PRICES IN APRIL; PLUS, WHY NEW HOMES ARE COMPARATIVELY LESS EXPENSIVE TODAY THAN IN 2007

Key Takeaways:

  • An increase in total inventory and a slight decrease in the share of new home sales last month helped hold home prices steady between March and April.
  • Comparisons to 2007 are typical when median prices go above $300,000, but in doing so, one must adjust prices for inflation.
  • Adjusting for inflation, new homes today are comparatively less expensive than in 2007 when prices were driven by speculation. Current new home prices are impacted by land, labor, and material costs, as well as the low number of “move-in ready” options,  compared to demand.

Analysis:

 The

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Summary

The data collected indicates that the trends in Ada & Canyon county vacancy rate increased from 3.0% in the third quarter of 2018 to 3.4% in the first quarter of 2019. However, overall both Ada and Canyon County had a decrease in trending vacancy rates for single family dwellings, Ada County was down .5% and Canyon County down .6% this first quarter of the year. The slight increase in vacancies overall occurred in multi-family dwellings reported at 1% or less and likely due to the abundance of new construction in the area.

Ada County single family marketed rental rates saw a increase of $60 per month per unit. Multi-family units in Ada County also increased by and average of $70 per month per unit that are being

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It can’t be a surprise to anyone who’s tried to drive or park lately that Boise is growing.

Boise Business Review - Sharon Fisher, April 18, 2019

There’s finally a list where the Treasure Valley didn’t rank first, but even No. 8 is pretty good. That’s the ranking the area reached in percentage metropolitan growth from 2017 to 2018, according to the latest statistics from the U.S. Census Bureau.

The Boise metropolitan statistical area (MSA), which includes Meridian and Nampa, grew from 710,080 in July 2017 to 730,426 in July 2018, or a growth of 20,346 people or 2.9%, according to the census. That ranked it No. 80 in size and No. 26 in numerical growth, as well as No. 8 in percentage growth.

Midland, Texas, came in first with growth from

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 2019 Top 100 Best Places to Live

Livability.com - Winona Dimeo-Ediger

Take a walk around this year’s #1 city and ask people where they’re from, and chances are you’ll meet a lot of recent transplants from places like Portland, the Bay Area and New York.

That’s no coincidence.

Boise has become a magnet for people looking for a tight-knit community, great job opportunities, easy access to the outdoors — and perhaps most importantly, a much lower cost of living than many larger and comparably sized cities.  

Young families are drawn to Boise because it’s one of the safest cities in the world. In addition, Boise’s combination of affordability and do-it-yourself spirit make it the perfect place for creatives (check out the awesome comedy

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SHARE OF NEW CONSTRUCTION HOME SALES
CONTINUES ITS CLIMB IN ADA COUNTY

Key Takeaways:

  • New construction sales are gaining more and more of the market share and continuing to influence the overall median sales price.
  • While sales of new construction homes have been up year-over-year for the last 21 consecutive months, sales of existing homes have now been down for the last nine consecutive months.
  • Even though existing inventory is up year-over-year for the second month in a row (after 51 months of declines) this decrease in existing/resale homes sales shouldn’t come as a surprise, as the number of closed sales that are even possible has been limited due to the fact we’ve had fewer and fewer existing homes to sell each month compared
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The Washington Post - March 8th, 2019

Fast-rising rents coincided with a surprising rise in homeownership among younger buyers. Above, luxury apartments being built in the District before the rebound in homeownership. (Linda Davidson/The Washington Post)

By Andrew Van Dam March 8

A funny thing happened on the way to the United States becoming a nation of renters: people started buying homes again.

New data indicate that in 2016, in defiance of myriad prognostications, the decade-long decline in the homeownership rate abruptly reversed. Once-rapid growth in renter households stalled, and the long-stagnant number of owner-led households began rising.

The most recent Housing Vacancies and Homeownership

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The Flash Guide to Setting up a Qualified Opportunity Zone Fund

Qualified Opportunity Zones (QOZ) are designated areas that provide tax advantages for real estate investors (see my BP article last week: What Are Opportunity Zones - and Why Should Real Estate Investors Care?). These large scale projects are often out of reach of the average investor. A Real Estate Syndication fund is simply a pooling of financial and intellectual resources to invest in properties and projects larger than an individual could manage on their own.

As defined by the IRS, an Opportunity Zone is “...an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity

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2018 was another year of record low inventory and record high median sales prices in Ada County — dropping to just 474 existing homes for sale in January and reaching $334,400 overall in August.

While the price gains helped many homeowners regain equity lost during the Great Recession, they amplified concerns about affordability for many looking to buy now.

As inventory fell throughout 2018, it further reduced the percentage of homes available and considered affordable at each income level....

 

CLICK HERE FOR FULL REPORT

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Welcome to OZ!  BIG MONEY Behind the Curtain.

The Flash Guide to Qualified Opportunity Zones.

 

Q: What are Qualified Opportunity Zones?

A: Qualified Opportunity Zones (QOZ) are designated areas that provide tax advantages for real estate investors.

Q: Who came up with this tax advantage?

A: Believe it or not, Napster founder, and former Facebook President, Sean Parker did. The tech billionaire was seeking a solution to investor cash sitting on the sidelines, that could otherwise be invested in underdeveloped areas. He worked with senators to introduce and pass the legislation in the Tax Cut and Jobs Act of 2017.

Q: When are these tax benefits available?

A: They become available when an investment is sold, and the gain

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2018 BROUGHT RECORD HIGH HOME PRICES IN ADA COUNTY — BUT WHY?

 Key Takeaways:

  •  For the year, Ada County’s overall median sales price ended at $314,000 year-to-date (January 1–December 31, 2018), driven by more new homes selling at overall higher prices, primarily due to rising construction costs, and the persistently low inventory of existing/resale homes.
  • While new home sales were up 22.4% in 2018 compared to 2017 — the number of existing/resale home sales over the same period was down 4.1%. Closed sales are limited in the existing/resale segment due to the supply of homes for sale dropping year-over-year for 51 consecutive months.

Analysis:

2018 was another year of record low inventory and record high home prices in Ada

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