New Home construction in Meridian Idaho is booming. Sales are up 20% from this time last year, but did you know so is the gap between existing and new home prices?
I’m sure you have seen it, that massive flatbed semi loaded with trusses, flashing lights, pilot car and the big yellow banner screaming “wide Load”. I would guess you have noticed them even more this spring. That’s because new home construction is booming all over the Boise valley, in fact new construction sales are up 25% year over year. That is an impressive number and great news for the valleys economy.
Over the last year I have noticed an interesting trend but wanted to put facts to my theory. The question I had was how big of a difference is there between existing home sales and New Construction home sales in the Boise real estate market?
To do this I decided to dig a little deeper in one specific neighborhood. I used Paramount subdivision in North Meridian for my subject because of the sheer number of homes both new and existing selling right now. New and existing both sell well with an average market time of just 54 days.
The numbers were a little surprising even for me. Over the last 12 months the disparity between new and existing construction was over 20% on average. Over just the last 2 months that has been accelerating February was 23% and last month, March 2016 26%. Using the average sales price of $344,000 that’s an $89,000 difference.
So my question to you is this, are New homes in the Boise real estate market selling at a 20% premium, or are existing homes currently selling at 20% discount? Either way homes in Boise are selling faster than builders can build them.
Are you looking for a new home this year? Call Eric with Smart Agents Real Estate at 208-841-4283.