Boise Rental Market
Vacancy rates and housing demand are still proving to be favorable for homeowners as we move into summer both on the rental and sales sides of the market. We have continued with small rent increases throughout Ada county while Canyon county is still lagging behind with very few increases appropriate. The most recent vacancy survey from the local chapter of NARPM(National Association of Residential Property Managers) indicated a 3.3% vacancy rate overall. It seems lately that nearly every prospect mentions how quickly homes are going, and as a result so far this year, we've seen many more prospects quickly put down a deposit with their application right on the spot. Fortunately, with less time on the market, property owners are saving advertising dollars as well. Although there were originally some plans earlier this year to add some additional marketing features for prospects such as rental listing data via text messaging, smart phone technology access, and the like, such increases in marketing costs are currently unjustifiable as there is little issue filling vacancies and will be reevaluated in the future.Boise Real Estate
In terms of sales, Ada county currently has 4.7 months of inventory on the market, reduced 27% from last year at the same time, which is remarkably low considering that a normal, healthy market is generally considered to have around 6 months of inventory. There are still good short-sale and bank owned property opportunities, but they're typically going for more than the initial listing price as multiple offers on such properties are becoming far more commonplace. These facts coupled with the lower vacancy rates strongly suggest the Boise market has bottomed out and is therefore inclined to begin the crawl upward, the pace of which largely depends on a combination of how many foreclosures there are still to be added to the Boise market, which is an unknown, speculative amount, the rate at which new construction continues, and whether or not any mortgage-related legislation is put in place.
Brandon Morgan
Legerity Property Management, Inc.
