So, you have probably heard about Meridian Idaho’s annual accolades as being one of the best places in the country to live and raise a family. Great Schools, low crime, parks everywhere, outdoor recreational options everywhere and reasonable housing and living costs just to get us started. So, you might be wondering what effect all that good stuff that Meridian offers is having on the local housing market? Well, we’ll try to explain:
Average or below average supply and increased demand for home sales in Meridian, Idaho has created low inventory levels in the Idaho housing market. Whether or not you've paid much attention to home sales in Idaho in the past, low inventory levels will play an essential role if you decide to buy and/or sell a home now or in the near future. Although new construction has kicked into gear, Meridian and the surrounding area continues to have record low inventory levels, prompting buyers and sellers alike to wonder if that's a good or bad thing.
Sellers: Low Inventory Levels Can Go Either Way
When there are low inventory levels, it's also known as a seller's market. That's because when there's more demand for homes in Idaho than there are homes for sale, two or more buyers can end up competing to buy one home, giving the advantage to the seller. He can essentially write his own ticket, putting any price tag on his home, as long as the appraisal can back it up. What's more, he's likely to get his asking price or very close to it, and sell the home quickly because, whatever the price, homes don't spend a lot of time on the Idaho housing market when there aren't many to choose from.
Those "pros" might sound great to anyone who is planning on selling their home, but MarketWatch points out that low inventory levels can be a two-edged sword. You may be able to sell your house quickly and get top dollar for it but, if you want to move to another home in the same Idaho housing market, you might be facing the same issues that your buyer did. You'll be competing with other buyers for the few houses that are for sale, and the rise in prices for smaller homes could mean all the money you made on the sale of your house could end up going toward a much smaller one. In an upward trending market like Meridian’s you definitely don’t want to sit on the sidelines very long!
Buyers: Keep an Eye Out
There will always be homes selling in Idaho, even when there are low inventory levels. People need a place to live and, much of the time, waiting out a seller's market isn't an option. Although there may not be many homes to choose from and there won't be much room for negotiating a price, it's still possible to find a house you like. You'll have to keep an eye out and move fast, and having an experienced real estate agent can help. He'll be able to set you up a custom search on the Intermountain MLS which can notify you about homes that fit your criterion immediately after they hit the Idaho housing market, and he can also write up an offer on the spot when you find a house you want.
U.S. News and World Report offers other tips for buyers in a seller's market such as assuming you'll only have one chance to make an offer, so making your best offer initially could be crucial! And recognizing that the seller may not be as negotiable on repairs after your inspection might also come into play. However, if the issues are serious enough the seller would likely have to fix them for any buyer, especially if a loan will be part of the deal. Also, be willing to consider homes that may not have impressed you in photographs. At least walk through the houses that fit your budget and your needs. You may find that the pictures don't do them justice, but an in-person visit will give you a feel for the house and whether or not it could be your home.
To find out more about having full client representation on your next home sale or purchase, specifically in Meridian, Idaho or the rest of Southwestern Idaho, give Jeff Stewart at Stewart Realty a call. Buyer or seller, he can help you navigate low inventory levels and the Idaho housing market.
Broker/Owner, Stewart Realty, LLC,
Direct: 208-602-1993, Office: 208-887-5445