Year After Year

On Feb 7, 2020, exactly two years ago, Brad Barker, the owner of Group One Sotheby’s International Realty, commented on the trends of market statistics at the time and stated, ”What’s going to stop us? There are certainly concerns: how long will low interest rates last? Will the lack of affordability begin to limit sales? What if we have a pandemic?

This statement could easily be said today as we continue to deal with many of the same issues and same questions of a few years ago. “How long will interest rates last?” We know interest rates have risen and yet are still very low. So how long will these rates last? The trend appears to be that they are slowly heading up. (today at 3.875%) Time will tell how high they go and what impact they will have. “Will the lack of affordability limit sales?” Statistically, the number of sales continues to increase and so do prices. Year over year sales are up 14% and prices are up 19%. More and more Treasure Valley Buyers are saying they cannot afford to purchase a home today. The impact of affordability is clear at some price points and the solutions are becoming popular to talk about. “What if we have a pandemic?” Obviously, we are in a pandemic and the variants continue to impact our lives. For how long? Not sure we can agree on how long this will impact us but we are impacted today. The effects of this pandemic on Treasure Valley real estate have been minimal if not positive. Having something good come from something so terrible is a blessing and reason for hope even as we continue to recognize and remember so many lives that have been impacted otherwise.

Two years ago Brad finished his comments with, “But for now, the demand for properties in Ada County remains strong. And the strong demand, combined with low inventory continues to push prices up.” Again seems like this statement could be made today. Inventory of homes for sale is up 68% year over year, wow! Statistics sure support it!

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