Of the Rocky Mountain markets, Boise had arguably the shakiest end to the year with a decrease in both closings and starts. The market has a low unemployment rate at 3.6% and sustainable job growth into 2015, which hopefully will help move the market into a stronger spring selling season.
2014’s lull did show promise for the entry-level buyer however–the bulk of new homes closed in 2014 were priced between $150,000 and $250,000, and the market sees continued affordability with a median closing price of $241,700 in the fourth quarter.
“The decrease in new home production has primarily occurred in Ada County. Part of this retraction is due to the lack of lot inventory. Rising home prices have also played a key role in the decrease, and as a result, many new home buyers are being pushed into Canyon County, where they can find more homes available in the lower price ranges.”
“With new home production scaling back, as we get closer to spring, it will be imperative to monitor inventory levels of both finished vacant homes and vacant developed lots.”
The Boise landscape is run by regional builders, with CBH, Hubble, and Coleman closing the most homes in the fourth-quarter and ushering the market into what should be an improved spring selling season.
