July 2016 Owner Newsletter
Buy, Sell or Hold?
There is a powerful resurgence going on in the Boise Valley. Ten years after the peak of the real estate market and in recovery from the Great Recession, listings are now attracting multiple offers, often selling within 30-days. In April of this year prices had climbed back to within 3.1% of Ada County’s peak, (3.5% for Canyon County). Some investors have seen the buoyancy of this year’s activity as an opportunity to cash out of a property they’ve been holding on to for 8 long years of recovery, some re-investing in other areas of the valley, all with positive ROI (return on investment).
The low inventory of rentals is creating higher rental rates. The law of supply and demand demonstrates that the lesser inventory creates a higher rental rate. The shortage of inventory is in part to investors selling as stated above. This is great news for the investor who is holding on to his property for the long-term.
Opportunities are available for home buyers and/or assertive investors willing to participate in the migration to Canyon County. Rates are dropping due to European changes, which is causing lower interest rates. This could be a perfect time to add to your rental portfolio. Or, you could consider selling that single-family property, and through a 1031 exchange, turn it in to two properties.
Realty Management Associates does not engage in representing our clients in the purchase or sale of real estate. However, we can refer you to our team of professional partners. Our referral team includes specialists in Single Family investment property, multi-family units, and includes agents with expertise in different pockets of the increasingly expanding Boise Valley. One company we suggest reaching out to is Mike and Erica at www.boiserelocation.com. Let us know how we can help: Claire@rentalsinboise.com
Expanding Horizons in Canyon County
Guest contributor: Ophelie Montgomery Realtor, GRI. Opheliehomes.com
The rental market is strong in Ada County, but it is also hot in Canyon County. As of June 22, 2016, only 6 properties (4 bedrooms or more) are listed for rent. Rent prices are increasing, and inventory is low. In comparison, 13 properties are available under $160,000 (4 bedrooms minimum). It is currently possible to find properties with a very quick cash flow and high ROI rates.
We are Mobile Ready!
Did you know our website is now mobile ready? What does this mean for you? It means we are easier to find by tenants looking for properties to rent. Millennials account for the majority share of tenant demographics. This savvy group of on-the-go young professionals use their phones more than their computers when searching for services and resources. Our mobile ready website is easy to use, allowing tenants to find your property, schedule an appointment to view, and submit an application to rent - all online from a smartphone or other mobile device.
Boise Valley Economic Growth Forecast
- By 2017 it is predicted that 328,000 people will be employed in Ada & Canyon Counties
- Total population for the Boise Valley is anticipated to be 750,000 by 2020.
- An expected increase in population of 130,000 over the next four years.
- Undisclosed sources rumor a total population of 1,000,000 by 2020*
- The category projected with the greatest employment growth rate between 1stQ2015 and 1stQ2017 is in the self-employed & unpaid family sector showing 13.1% growth rate.
- The 2nd highest employment growth rate falls in the residential construction industry at 11.7%
- The steepest decline in employment is anticipated to be in the forestry and logging industry, projected at -3.7%
Source: Idaho Department of Labor – December 2015.
* Unknown source