After seeing new construction home sales in the Treasure Valley drop five years in a row, the Boise Real Estate market could finally be experiencing a reverse in that trend. With homebuyers struggling to find suitable housing on the open market, more Boiseans are starting to look at building a new home instead of purchasing an existing one. Eagle, Idaho is looking especially promising-seeing more building permits issued in 2011 than it saw in 2006.
The move towards home building could be a result of the fact that the Boise housing market is experiencing a shortage of homes for sale due to foreclosure listings dropping by over 50% in one year, and non-distressed sellers refraining from listing their homes because market home prices remain low. It seems people that have the money to buy a home who aren’t finding what they want are taking advantage of still drastically reduced lot prices and choosing to build instead.
Though growth in the single family construction market is up, the main source of the rush in new building permits in the 4th quarter of 2011 came from construction of multi-family buildings. Either way, increased building is good news for the many laid-off workers in Boise’s once booming construction industry.
Nationwide numbers look good, too: Housing starts were up over 24% in November compared to last year, and up 9.3% from October. New Housing starts have been picking up over the second half of 2011, after dropping 22.5% in Feb, which was the largest monthly decline since 1984.
This is exactly the news everyone was hoping to hear since a surge in the new construction market means a surge in the job market. Statewide, Idaho unemployment is the best is has looked in a couple years. Let’s all hope these numbers continue to improve, and 2012 brings even more jobs for Idahoans and more homebuyers getting just the home they want-whether bought or built.