Have you started looking for a house and defining an area of how much you want to spend?
Be ready to spend more.
If a home in the Boise area is listed for $ 300,000, you will likely need more to close the deal. How much more? Maybe $ 10,000 to $ 20,000 above list price, said real estate agent Rick Gehrke.
"There doesn't seem to be anything reasonable to offer, and even if the price is reasonable, it isn't selling at a reasonable price," said Gehrke, an agent at Remax Executives in Nampa who sells over the phone in both Ada and Canyon counties. "There might be one that looks good and there are 13 deals and the best deal is $ 25,000 above full price."
It's even worse for homes in the $ 350,000 to $ 400,000 range, he said. Expect to pay $ 30,000 to $ 40,000 above the price.
If you are a first-time buyer, good luck.
"I feel sorry for first-time buyers because the interest rates are great for them," he said. "But unless they buy a plump, 65-square-foot, two-bedroom, one-bath, 65-year-old piece of trash, there is just nothing affordable for them."
In December, the average price of homes sold in Ada County rose to a record $ 434,900, up from $ 9,900 from November, also a record.
Cash offers take precedence and exclude buyers who require a conventional mortgage. Cash buyers can close a deal much faster, and there isn't a mortgage lender asking for a home to be repaired to fix problems, he said.
"I see more and more cases in which parents let their children live with them for a while," said Gehrke.
He has a client whose son was a Navy Seal, and he and his fiancé can't afford to buy a house.
"I would like to see how they get a house, but right now it is advisable to live with your mother for a year or so and save some money and maybe things will calm down," said Gehrke.
Houses for sale remain rare. Last month there was a record low of 333 homes in the market. In the previous month it was 408, also a record low.
A year ago, it took 40 days for the average Ada County home listed on the market to sell. In December, it took less than half that time, 18 days. In a year, the average price has increased by $ 65,100 and the number of homes in the market has decreased from 1,631 to 408.
Canyon County's average price is $ 339,445, the 11th consecutive monthly record. The median has increased by $ 84,445 since December 2019.
A total of 193 homes went up for sale in Canyon County in December, slightly more than the record low of 168 in November. Home sales took an average of 17 days, compared to 46 in December 2019.
Freddie Mac said mortgage rates hit a record low of 2.65% last week for a 30-year fixed-rate mortgage.