2022 New Evidence That The Boise Housing Market is Shifting from HOT to ??? - You Decide - Video

The Boise Housing Market is clearing Shifting. Prices have been out of control for quite sometime, but the recent huge swing upwards in mortgage rates has finally made our housing market drastically more expensive. Effectively putting a giant wet blanket on the entire market. Demand has dropped off sharply and not inventory is rising quickly.

MARKET QUESTIONS AND ANSWERS
How far will inventory rise this year? It will most like double.
Will that lead to a crash? No.
Why not? Because inventory (supply) needs to triple or quadruple before it causes a significant dip (more than 10%) to housing prices.
Is that possible in the next couple years? Yes
What would make it happen faster? More large hikes interest rates.
Do you anticipate interest rates going up a lot more? It's not currently projected to go up much more this year, but that doesn't mean it won't happen.
Is now a bad time by a home? Not if it's the one you've always wanted.
Should I wait for home prices to drop? There is little chance that home prices will drop significantly this year, but even if they do, it's likely going to cost you more per month to buy the home later this year if mortgage rise more. So my advice is, if you plan to stay in the home for a long time and you can afford it today, then great buy the home. But if you might need to sell in a few years, now maybe not the right time to buy. Personally, I try to buy homes one of two ways. Either to hold forever (or for a very long time), or I buy to flip.
Can you flip homes even if the market is going down? Yes. I often improve the value of a home by more than 30% when you fix it very nice, in a short period of time (like 3-6 months). Even if the market drops 5% in a 6 month period, you can still flip homes successfully.
Is now a good time sell? Yes, if it's a rental property and you need the cash from the sale for something else. If it's a personal home, the problem is that you need to buy something else so it's not necessarily a win on your finances.
Should I sell and then rent until prices drop? The problem with that idea is there no telling (yet) when prices will drop and and how far they will drop. Even if they do drop significantly in a few years time, interest rates could be a 8% or more, and if so, you not coming out ahead unless you paying cash for your home. Plus rental prices are crazy high and economy is good, so I don't predict rental prices to come down anytime soon.

Mike Turner
Real Estate Investor/Consultant