According to a recent article published by Houseopedia.com, over 80 percent of prospective home buyers start searching for a home online. The only surprising thing about that statistic is that the percentage is so low.

But beginning a home search online is very different than trying to do it yourself instead of using a real estate agent.

Agents are experts in housing, they’re current on the legal requirements of the transaction, and are professional negotiators. And don’t forget the value of their professional networks. Inspectors, lenders, title companies, and even reputable builders and contractors. If you’re moving to a new area, this expertise becomes even more invaluable.

One last thing, it doesn’t really save you money to buy a house without a real estate agent. Since they’re typically paid by the home seller, you’re not paying for those services anyway.

There are a ton of agents out there and choosing one can be a little overwhelming. So ask around for a good recommendation. We recommend the teams below in Boise and the Tri-Cities:

In Boise:

John L. Scott

Ryan Kerfoot

RyanK@johnlscott.com

(208) 703-5446

Carlos Bendeck

CarlosB@johnlscott.com

(208) 867-7302

Craig Severson

CraigSeverson@johnlscott.com

(208) 949-7951

In Tri-Cities:

Retter & Company / Sotheby’s

Greg Johnston

greg@rcsothebysrealty.com

(509) 539-3834

Jason Barrow

jb@rcsothebysrealty.com

(509) 308-2102

We couldn't be prouder of our Mesquite model we entered into the Boise Spring Parade of Homes. We shared a few pictures of the home here, But we also have a Virtual Tour of this home. Here's where you can virtually walk through this amazing home:

If you'd like to see more Virtual Tours of our homes, you can visit our complete gallery here:

Fortune.com published an article on August 26 showing a list of “overvalued” home markets. Right at the top of the list is Boise, Idaho selling at an 80.64% premium. What does this mean?

First of all, using the term “overvalued” makes it sound like the value isn’t really there. That a Boise homebuyer isn’t getting what they’re paying for, and that 80% of the investment they’re making in their home can simply disappear. Let’s dig a little deeper.

The Florida Atlantic University study the article was based upon used the Zillow Home Value Index over the past 25 years as a base point. Meaning that we’re comparing today’s home prices to home prices as far back as 1996. The graph below from the St. Louis Fed shows what’s been happening to Boise area home prices over time. This is what we’ve all seen over time, the home prices in Boise have gone up dramatically.

So home prices have gone up, but are they “overvalued”? This is a supply/demand issue. We’ve all seen those “greatest places to live” articles over the past 20 years that show Boise near the top of every list. That creates interest in the area and people wind up moving here. If the supply of homes can’t keep up with new demand (new local households being formed and looking for homes along with people relocating from other places) then prices increase.

The associate dean at FAU’s College of Business makes this statement:

“In the Top 10 markets, potential buyers might want to consider renting and reinvesting money that they otherwise would have put into homeownership.”

That actually proves that Boise’s home market isn’t overvalued but is actually responding to market demand. If home prices were truly higher than they were actually worth, then renting would be a viable option. This article by local news site boisedev.com shows how rent prices in Boise are increasing at the fastest rate in the country. Whether people are planning on renting or buying, there’s more demand than the market can currently meet.

Boisedev.com also refutes use of the word “overvalued” by the Fortune.com article and FAU study in an interview with a local real estate broker here.

This may sound a little nitpicky. We all agree that Boise home prices and rent costs have increased dramatically. But we shouldn’t be afraid that we’ll suddenly lose 80% of the value in our homes. Those prices are supported by market demand and people wanting to live in a highly desirable area.

The Riverwood team is proud of the four 1st place awards we received at the 2017 Spring Parade of Homes Banquet. Our house was awarded the top prize for its Kitchen, Master Suite, Interior Design, and Interior Decoration. We're very honored by this recognition, and we thank all of our vendors and subcontractors who participated in building this house! We especially want to recognize Jac's Home Staging for their work in furnishing and decorating the house.

According to a recent study, Boise and Nampa rank #1 and #2 among cities nationwide for best run government. The survey ranks the 150 largest cities in the country by budgeting efficiency in categories such as financial stability, education, health, safety, economy, infrastruction, and pollution. 

This report shouldn't be considered an exhaustive and all-inclusive study, but it does support our opinion that the greater Boise area is a great place to live and offers attractive amenities and services at a modest cost of living. Having a well run government is just one more benefit of living in Boise.

The Fiscal Times recently published an article about ten real estate trends coming up in 2016. Some highlights from the this article include:

• Home prices are expected to continue to increase slowly, 3.5% throughout 2016
• Interest rates should slowly inch up through the year as well. However, according to the Mortgage Bankers Association, the 30-year mortgage rate shouldn't exceed 4.5% - still a very low rate compared to historical numbers.
• It will remain cheaper to buy than to rent. Buying is cheaper than renting in every one of the country's 100 largest metro areas and that disparity will likely grow accoring to Rent.com.

So what does that mean for homeowners and renters in Boise, Idaho; Tri-Cities, Washington; and Boardman, Oregon? It means that 2016 could be a great time for you to sell your home or leave the rental market and purchase a move-in-ready home or begin thinking about your to-be-built house!