Boise has once again become a competitive feeding frenzy for the savvy investor in search of good deals. Investors that Sheila and I both work with are finding it difficult to make competitive offers and many times facing multiple offers on each property we find.
The rental market here and around the country is projected to remain strong and experience growth according to leading economists. There are many factors driving this trend. Tighter lending standards are requiring more of a down payment than in the past and bills currently in congress could require at least 20% down in the future. Some people are still facing foreclosure and it’s more positive alternative short selling a home. These unfortunate people will be in the rental market from two to seven years before their credit recovers enough to buy. Many economists also speculate that the more and more mobile our population becomes the less likely they are to buy until they are sure they are tied to a community.
What does this mean for Boise? One thing we are seeing is that first time buyers and those looking to purchase under $100K will be facing tough competition and will need to be willing to move quickly when they find the right home. Homes under $100K appeal most readily to the small time investor market and cash flow with rents very quickly. This trend is both good and bad. Bad for those looking for low cost homes in nice neighborhoods, which are becoming harder to obtain. Good for the overall market, as competition will ultimately drive up prices and fuel a stronger market.