Last year, you may recall that Realtor.com said Boise was going to be the number one real estate market in the U.S. for 2020. As we’ve witnessed, that even despite the global pandemic, the area’s real estate market has been on fire with homes being sold as quickly as they’re listed, and usually for more money and without a lot of contingencies.
Home values have been appreciating rapidly, with new median price records being set monthly as Idaho leads the nation in year-over-year price growth. Significant demand from both in-state and out-of-state interests, lack of resale inventory, and historically low mortgage interest rates are factors pushing prices higher.
And now, a new report by Veros Real Estate Solutions has the Boise area as the strongest real estate market in the U.S. over the next 12 months. It’s predicting the region’s home values to increase just over 12% by Q3 of 2021. Interestingly, the top 10 cities expected to have the best performing real estate markets are all Western U.S. cities. The Olympia, Washington, Spokane, Washington, Phoenix, Arizona, and Bremerton, Washington areas round out the top five regions. Idaho Falls made the list in the number ten spot, with a modest 9% predicted increase in its home prices.
“At the onset of the Coronavirus pandemic in the United States, there was a short impact on nearly all housing markets with a month or two of softening,” said Eric Fox, Veros Vice President of Statistical and Economic Modeling. “After the initial shock, consumers embraced low-interest rates and home prices returned to their pre-pandemic level and continue to move upward.”
Jefferson City, Missouri, is expected to have the worst-performing real estate market of the top 100 real estate regions. Cities in Texas, California, Illinois, New York, and New Jersey also find themselves on the list of those predicted to be the least performing markets in 2021. The good news is that none of those areas show any depreciation.
The Boise area will continue to be a seller’s market, as people are not putting their homes on the market, and builders can’t keep up with the demand. Veros’ prediction is the first for 2021 and probably won’t be the last, proclaiming Boise as one of the top real estate markets. Once the pandemic is entirely behind us, we’re left to wonder if Boise and the Treasure Valley housing market will reach a ceiling. Time will only tell.
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