If you talk to many house-hunters in Idaho, you might be under the impression that the state is headed for a dreaded real estate bubble. In fact, it has so many people scared, they are actually adding to the problem by not parting with their homes, even when they know it’s time to sell. So, what does this mean for Idahoans? Let’s take a look.
What is a Housing Bubble?
When housing prices grow to above-average costs without much movement in the market, it creates a housing shortage. But several other factors contribute to an actual housing bubble. For one thing, lenders start to lighten up on their standards and lower their interest rates. This usually happens when the economy is on the rise and people have more disposable income, making lenders anxious to get ahold of the extra cash floating around. This spikes the cost of housing, making homes less affordable and harder to get.
Is Idaho in a Housing Bubble?
While it’s difficult to predict whether or not any area will reach this status, there are a few factors that indicate that Idaho is not headed there yet. For one thing, the state’s economy is not in dire straights anymore. In fact, the job market has seen a rise of about 2.8%. They also have a much lower unemployment rate than the US average, coming in at about 3.6% as opposed to 5.2%. So, while the market is definitely in favor of the seller right now, it seems that a bubble scare may be unwarranted.
Is it Time to Sell?
The bottom line is that even though, Idaho may not be in line for a panic, it’s still the best time to sell. For one thing, the real estate market fluctuates just like any other. In fact, it is so unpredictable, that it can change in a matter of months due to various economical factors. That’s what makes now the ideal time to sell. Is it time to upgrade to a bigger home? Or have you thought about moving to the suburbs where life is a little more laid-back. You might want to consider calling your Realtor now. There’s never been a better time!