Nov. 1, 2017
If you have been watching the real estate market in Ada County Idaho and looking at homes for sale in Meridian Idaho for very long, you might be wondering if home prices in Meridian Idaho will continue to rise like they have for years now. Housing trend predictions for the country are helpful indicators, but Idaho has proven to be a unique market that tends to march to the beat of its own drum, even if it does drift along the same path as the national market in general. Current signs suggest that the trend in home prices in Meridian Idaho is close to leveling off so, though Meridian Idaho real estate prices have been on an upward swing since 2012, experts expect them to level out sometime in 2017 or 2018. Due to significant demand Home prices in Meridian Idaho may continue to rise, but economists estimate they will likely flatten out or increase at a more sustainable rate for the foreseeable future.
Still in an Expansion Phase
When trying to predict a trend for home prices in Meridian Idaho, the Harvard Division of Continuing Education points out that real estate typically cycles through four phases over and over again. After a recession, Phase I is the recovery, where housing prices begin to rise. The increase in pricing continues through Phase II as the market expands, and it peaks at the beginning of Phase III, where increasing vacancies and excessive supply usher in a period of declining prices. Phase IV is when the market goes into a recession and prices drop to new lows, and everything starts all over again. To give you an idea where we are, the Meridian Idaho Housing Market has not yet entered Phase III as of October, 2017.
The Idaho market hit the statistical bottom in January of 2011 and along with the rest of the country came out of the recession beginning in 2012 and is well into the expansion phase now. At the end of 2015, Bill Conerly of Forbes advised that home prices would be on the rise for the next year and a half to two years. If home prices in Meridian Idaho follow national trends and predictions, around 2017-2018, as possibly as late as the end of that year, prices in the area are expected to peak, then remain static for up to a couple of years.
Although no one can predict home prices with 100 percent accuracy, it is possible to make an educated guess about where Meridian Idaho real estate prices will go based on a variety of factors. The national projections discussed above play a part, but so does the economic and employment climate in the area. Housing says that Meridian is Idaho's fastest growing city, and that means the area is still in an expansion phase above and beyond the market as a whole. That is good news for the local Meridian Idaho real estate market because it translates to more new construction as well as listings of existing housing as families upgrade to new homes as people from out of town and out of state move into the area.
Important Boise Connection
Meridian's proximity to the state capitol is one thing that affects home prices in Meridian Idaho. The larger metropolitan area of Boise appeals to a diverse demographic. There are plenty of jobs, according to Business Insider. Boise landed at number 11 on its list of the 20 best cities for finding a job, but the magazine made sure to point out that the area is number one in the category of socioeconomic environment. That projects a bright future for area growth in general, and it specifically means continued growth for Meridian. Especially with all Meridian has to offer families over Boise.
How does that work? Well, people may come to the Boise area for jobs or other urban benefits such as sports, entertainment, shopping, and the like, but many also envision living in a more suburban area, and Meridian is the place a lot of people make their homes. Just 10 miles from Boise, everything the capitol has to offer is just minutes away, but you get to go home to a house with a yard, a backyard garden if you want it, plenty of space between you and the neighbors and most of all the family community and the schools. Because living in Meridian is an attractive proposition, supply for homes will likely stay just behind demand, as reported by Boise Regional Realtors. The bottom line is a continued strong Meridian Idaho Real Estate market as it progresses through the expansion phase for awhile longer.
New Construction and Home Ownership
Housing starts were up nationwide in 2016, and many homes for sale in Meridian Idaho were among those new construction houses. In fact, the Idaho Statesman reports that new construction in Meridian has been extremely good business for contractors. There is an extreme shortage of new homes in Meridian at the time this article was posted with the lowest inventory in nearly 10 years.
Don't jump to the conclusion that so much new building will usher the Meridian area into an early Phase III decline. Most of those new homes were presold, and contractors and developers are having a hard time keeping enough inventory to meet the still-large consumer demands. Even when a builder gets the chance to start a home before it is sold, many times it ends up selling before it's complete. Still, that should not discourage home seekers who want to settle in Meridian. You can buy a lot or keep an eye out for both existing and new construction homes for sale in Meridian Idaho, as both types of real estate are being listed all the time. With help from the right Realtor, you should be able to find Meridian Idaho real estate to fit your needs as well as your wish list.
Another factor that puts a twist on the trend for Meridian Idaho real estate is the fact that the age at which many people traditionally start looking at buying a home for the first time has increased. While it used to be that people would be ready to buy a home in their mid-20s to early 30s, the generation that is in its 30s now are only beginning to think about settling down. Their key home-buying years will continue for more than a decade, adding fuel to a strong trend in Meridian Idaho real estate well into 2020 and possibly up to 2030.
Interest Rate Influence
Interest rates factor into the demand for homes, and that means they help influence home prices in Meridian Idaho. Rates are still low and low interest rates make homes more affordable, so more people are in the market to buy. Some homeowners may remember a time when mortgage rates were above 10 percent, but that was long ago, in the mid-1980s. They have dropped significantly since then and, even before the recession hit in 2007, mortgage rates were below 7 percent.
With 30 year fixed interest mortgage rates at just around half of what they were at the beginning of the recession, potential home buyers are more confident than ever about the possibility of buying a house, whether it is a starter home or they are finally moving up to their dream home. What's more, the Economy Forecast Agency says that mortgage rates will stay below 4 percent well into 2018. Though they are expected to fluctuate a little, possibly going as low as 3.22 percent at some points but not shooting above 3.8 percent before September of 2018, the interest rate projection supports experts' predictions that prices for Meridian Idaho real estate will hold steady at least into 2017 and possibly into 2018.
Mini Trends in Prices for Homes for Sale in Meridian Idaho
Within larger, lengthier trends, there are always mini trends. Although the market may be expected to go up in the long run, it still may take small dips and dives before it hits an expected high point. That means no matter what the national experts say, home prices in Meridian Idaho could fall slightly in the fall and winter months, and then go back up when the real estate business gets busy again in the spring. Although fall and winter have fewer buyers, there are also fewer sellers.
Overall, though, the Meridian Idaho real estate market is very healthy. According to Zillow it is stronger in Meridian than the majority of the surrounding areas. Though supply hasn't caught up with demand just yet, there are still quite a few homes for sale in Meridian Idaho. Plus, if you are not having any luck finding a home that fits exactly what you want and need, you can always consider building it. There are almost as many lots and development properties available as there are homes for sale in Meridian Idaho.
When you want the inside scoop on the trends in home prices and Meridian Idaho Real Estate or just a good builder recommendation Jeff Stewart and the professional team at Stewart Realty can help. They have valuable long-term experience with the local market that is useful for identifying trends and staying ahead of them, and Jeff's experience in construction and appraising homes and property gives his clients an edge other agents can't offer. Whether you are new to the area or want to move up, downsize, or build, Stewart Realty will help you find just what you are looking for. To find out more about home prices in Meridian Idaho, or in other cities nearby, give Jeff Stewart at Stewart Realty a call for a personal tour of the area and some great homes that fit your style and budget. Jeff Stewart, Broker/Owner, 208-602-1993 or email@example.com.