Real Estate in 2015

It is that time of year again, time for the Rich Nesbit forecast on the real estate market. Where will the market go? Let’s take a look.

Home Prices: I believe that this year home prices will show a comfortable increase of 4%. On average, that is the rate of growth in Idaho for real estate. Last year’s results are not yet in, however we did not reach the 20% appreciation mark overall. Resale residential will be around 5-6% growth and new construction will be around 13-14%. Increased inventory levels slowed the pace.

Housing Inventory: Levels will remain near normal. Supply should stay around 4-6 months.  A normal market is around a 3-6 month supply. We were near normal for most of the year in 2014.

Interest rates: Rates show they will continue to stay low. If Treasury notes drop to 1%, look for interest rates to drop as well. Lots of thoughts as to why it is low and why it may go lower. More on that later.

Unemployment: Jobs are doing well for the most part here in Idaho. For those of us with friends and family in the Oil Fields, such as North Dakota, if crude continues to drop then there could be layoffs of high paying jobs. Canada has seen some of this already. Companies here in the States say they are convinced they can continue even if Oil hits $40 dollars a barrel; however, only time will tell.

The real estate market is affected by so many more factors than the few listed here. I believe we will have a stable market, with some growth. All the Best Richie Rich

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