Last year was one of the top years for growth in the Treasure Valley, and Vice President, Treasure Valley Manager Phil Archer says that 2020 is primed to be just as successful. Here are his five key takeaways for 2020.
Expect another boom year.
“All of our forecasting — both financial and industry — shows that Idaho will continue to be a leading market in the nation in growth, with low inflation and unemployment,” he says. “We’re primed for a successful real estate market.”
Refis will be big business.
Even though the stock of new homes is low, Phil says, the increase in property values over the past couple of years will drive new growth in refinances. Forecasters are expecting another bump as homeowners consolidate their debt using their home equity. Although interest rates haven’t lowered greatly in the past 12 months, he says, refinancing is still a prudent option for homeowners who have equity.
Affordable housing will still be a struggle.
“Although Idaho still doesn’t have enough inventory, and although we’re building as fast as we can, there’s still a large gap in affordable housing,” Phil says. “We will continue to have struggles with growing the real estate economy successfully.” Mid- to high-end homes are still being snapped up, but houses in the $175,000-$250,00 are increasingly difficult to find — and wages in the Valley have not caught up with growth.
Don’t worry about the election dip.
It’s a presidential election year, and the markets hate uncertainty. You can expect some volatility towards the end of the year, Phil says. “Just remember that elections, historically, have not affected the economic market as much as people expect,” he says. “We have a strong economy, and a strong real estate economy, and we don’t expect that to deviate or decline dramatically.”
Our industry is primed for success.
No matter what the market does, there’s always a way to make a living in the real estate industry, Phil says. “Focus on a good client base, good partners, good marketing, and good planning,” he says. “Talk to your title company and see how it can help. All indicators point toward a great year, but don’t bank on market conditions for growth — work your network so you can squeeze the most out of every opportunity.”
What are your predictions for the year ahead? Let us know in the comments!
Phil Archer is vice president - Treasure Valley manager at Fidelity National Title.