Originally posted on June 19, 2020
It has been 12 weeks since Idaho abruptly announced the statewide shut down on March 25th. It seems like just yesterday and 2 years ago all at the same time. What a time warp that threw us all for.
Now that we’ve got some normalcy back in our lives and have had time to see the fallout of shutting down an economy, we can give you a really good update on how CV-19 has affected real estate values here in North Idaho. You may think these findings surprising!
In the height of the mass fear that was gripping everyone at different levels, we saw many deals fall out of escrow. We were able to resell all of those former pending homes within 4 weeks. After buyers got over the initial scare, they came out in hoards looking for what many thought would be an amazing opportunity to pick up some bargains. This was a common thought for many in the real estate community.
We found the kink in this plan when our sellers stayed a bit fearful of strangers in their home well after the buyers were already out and chomping at the bit to buy a house. This odd correlation led to a massive shortage of homes for sale on the market and stunned buyers who were expecting to find a deal but unfortunately found themselves as one of several offers on most homes. With the sellers pulling homes off the market or delaying putting their homes on the market, we saw an already tight inventory market constrict even more to ridiculously low levels. This led to multiple offers and surprising home appreciation that has stayed strong.
We have been tracking weekly new listings for the past 12 weeks. In comparing them to the same period in 2019, we found that 1,060 less properties came on the market in 2020 versus 2019!
What does this all mean?
The buyers are out and looking, and they are not picky! Well, some may be but the ones buying the houses aren’t. Our area is in super high demand. Our team is constantly talking to clients from our feeder markets (CA, WA, & OR). They all want to get out of those states and move here, putting even more pressure on our tight market.
Where is the opportunity?
Increased sales prices, stronger offers for sellers, and land appreciation. Sellers can also get away with selling “odd duck” properties. With demand so high and inventory so low, buyers are having to settle just to get into our market.
Where’s the downside?
Buyers. Our poor buyers are being put through the wringer right now. Multiple offers, over asking price offers, purchasing with video tours because it will be sold by the time they book a flight, etc… For our future generations, it’s sad to think about our kids possibly not being able to afford a slice of this amazing place we get to call home.
What can we do to help?
When working with an agent on our team, you work with a dedicated full time agent whose main priority is getting you in homes as soon as they hit the market. When a buyer does write an offer, we pack our offers with our “secret sauce” of terms and conditions that help our offers stand out amongst the crowd. If you know anyone looking to buy a home in this tight market, please do us both a favor and get them hooked up with us!
We love taking care of the real estate needs of our clients and their friends and family! A referral from a past client or friend is the highest compliment we can ever receive!
If you have any questions about the info I’ve shared or would like to know the value of your home, please don’t hesitate to reach out. We are here for you!