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Californians cashing out are a big part of it. The median home price in Boise is $575k, whereas it's $1.3M in San Francisco, $1.4M San Jose, and $1.2M in Los Angels.
While I still see a decent number of CA plates in Boise, I'm also see a lot from WA, OR, and elsewhere. Median home price in Seattle is $829k and $569 in Portland.
Median price in SLC is $590k, $560k in Denver, and $524 in Phoenix.
So folks can geoarbitrage from most CA cities, Seattle, and any number of HCOL areas and come out ahead in Boise. For other metros around the mid $500k range it's a lateral move, which is very doable for most folks.
My property taxes here in Boundary county are a fraction of what they were in Texas. It would take a tax assessment of over $1.25-1.5m here to equal what I paid for $325k in Texas.
Quote:
Originally Posted by AnythingOutdoors
Californians cashing out are a big part of it. The median home price in Boise is $575k, whereas it's $1.3M in San Francisco, $1.4M San Jose, and $1.2M in Los Angels.
While I still see a decent number of CA plates in Boise, I'm also see a lot from WA, OR, and elsewhere. Median home price in Seattle is $829k and $569 in Portland.
Median price in SLC is $590k, $560k in Denver, and $524 in Phoenix.
So folks can geoarbitrage from most CA cities, Seattle, and any number of HCOL areas and come out ahead in Boise. For other metros around the mid $500k range it's a lateral move, which is very doable for most folks.
Agreed. LA and SF are the two highest areas those folks are escaping from. And it so happens to have some of the highest property values. So it all makes sense.
Nov-Dec is always a weird time for the market, so we'll have to see what happens in the 2024 spring selling season. Most existing homeowners are locked into 3% 30-year fixed rate mortgages vs. current rates of around 7%, which continues to suppress inventory. So my guess is that 2024 prices will largely depend on interest rates. If rates fall prices will probably continue to increase, whereas they will stay relatively flat if rates are flat. I don't expect mortgage rates to increase much if any.
Do you really believe everything you read? Two homes right near me just sold for 750k. A Realtor down the street is selling homes every week.
This whole thing is good if you are buying. The Treasure Valley is like the Bay Area was many years ago. It is growing and has growth related issues.
Let's face it, as the cities further decay, Idaho will grow further. It is about supply and demand.
We need the digestion for more buyers to buy.
More or less the article was using local incomes vs prices and concluded the homes are way overpriced compared to the local income levels. Does not necessarily mean prices will drop.
The writer probably did not account for the large equity down payments or many buyers just outright paying cash, coming from high costs areas.
San Fransico is crazy a 2-bedroom condo will sell for $1.25M, someone that bought that in 2009 for $350,000, they would have a ton of equity.
Same with Orange County in Southern California medium price is $1.1M, most that owned homes on or before 2016 have at least $500K in equity, they can pay cash in the Boise area or take out a small loan and don't need a high income to cover a $150,000 balance.
In San Fransico the park gardener for the city was making over $100K, not sure what the equivalent is in the Boise area for a city gardener? For An example.
More or less the article was using local incomes vs prices and concluded the homes are way overpriced compared to the local income levels. Does not necessarily mean prices will drop.
The writer probably did not account for the large equity down payments or many buyers just outright paying cash, coming from high costs areas.
San Fransico is crazy a 2-bedroom condo will sell for $1.25M, someone that bought that in 2009 for $350,000, they would have a ton of equity.
Same with Orange County in Southern California medium price is $1.1M, most that owned homes on or before 2016 have at least $500K in equity, they can pay cash in the Boise area or take out a small loan and don't need a high income to cover a $150,000 balance.
In San Fransico the park gardener for the city was making over $100K, not sure what the equivalent is in the Boise area for a city gardener? For An example.
I think part of the problem is that income data lags housing data. Lots of people with high incomes moved to Boise within a relatively short amount of time, which drove up current RE prices, yet these higher incomes didn't appear in the data right away.
Boise's median income is around the same as the median household income of California, but California's median home prices is much higher at around $800k.
Boise's median income is lower than that of San Jose ($125k), but housing in San Jose is around 3x more expensive. So San Jose has 25% higher household income, yet housing there is 300% more expensive. Yet no one is going around saying San Jose is vastly overvalued.
I think part of the problem is that income data lags housing data. Lots of people with high incomes moved to Boise within a relatively short amount of time, which drove up current RE prices, yet these higher incomes didn't appear in the data right away.
Boise's median income is around the same as the median household income of California, but California's median home prices is much higher at around $800k.
Boise's median income is lower than that of San Jose ($125k), but housing in San Jose is around 3x more expensive. So San Jose has 25% higher household income, yet housing there is 300% more expensive. Yet no one is going around saying San Jose is vastly overvalued.
San Jose is a cesspool High crime, congested with traffic with a high pedestrian kill rate. Wouldn't go near that city. San Jose is overpriced.
San Jose is a cesspool High crime, congested with traffic with a high pedestrian kill rate. Wouldn't go near that city. San Jose is overpriced.
Crime in SJ is about the national average. But yeah, you don't get much for your money there. The downtown is lacking relative to the size of the city, and the rest of the city is strip malls. Which is mostly true of the rest of the silicon valley. All this for just $2M for a small 70 year old house. And yet stuff is "worth" what people are willing to pay.
I think the national media just really really really wanted to tell a story of Zoomtowns and a boom-bust cycle.
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