Boise Real Estate Market
The median sales price for homes in Boise from Mar 1st to Mar 31st is $233,000 based on 463 home sales. The average price per square foot for Boise is $142, an increase of 6.87% compared to the same time last year. March 2017 housing market summary:
- The median list price decreased to $230,000 in March (up 7.70% from 12 months ago)
- The median home price decreased to $233,000 in March (up 10.11% from 12 months ago)
- Total home sales increased to 463 in March (down 21.02% from 12 months ago)
- Median days on market decreased to 13 days in March (up 5 days from 12 months ago)
- Available homes for sale increased to a 1.64 months supply in March (down 15.39% from 12 months ago)
- 30-year mortgage rates increased in March to 4.20% (up from 3.69% 12 months ago)
*Includes both new and existing home sales.
Boise Home Values
Existing – March’s Boise median home price is $221,850. Down from the record high of $229,450 we set in June of 2016. That is a 4.38 percent increase from $212,550 last year. The median price per square foot is currently $140, $1 short of the all-time high of $141 set nine years ago. In 2016 the median price per square foot was $129.
New – The median New Construction home price in Boise was $317,457 in March. A decrease from the median price of $360,000 we saw in February. In 2016, the median new home price was $299,342.
Total Home Sales
Existing – In the Boise, Idaho we saw a total of 382 homes sell. Last month 207 homes were sold. For the same month last year, 366 homes were sold.
New – 81 new construction homes sold in March compared to 41 sold last month. At this same time last year, 66 new homes sold.
Home values are up 17.18% since January 2015 and up 67% since 2012. Your homes probably worth more than you think. Find out by how much.
Time to Sell
Existing – Median days on the Boise real estate market fell to 9 from 22 last month. In March of 2016 homes were selling in 13 days.
New – Median days on market for new homes was 67, up from 64 the previous month. Last year median days on market were 73.
Available Inventory of Homes
Existing – The available supply of homes increased to 1.61 months from 1.03 months. Well below the four-to-six months that most real estate pros would consider a balanced market. In the Boise housing market, this is still the fewest available homes for sale we have seen in ten years.
New – The supply of homes dropped to 2.05 months from 2.30 months last month and represents completed and under construction inventory. Including “to be built” the inventory of homes is 3.46 months. To be built homes are essentially advertisements for the builders and can stay in this status for years, so not a very good indicator of the homes that are currently available.
Market Summary and Outlook
The Seller's market continues. Boise home values have increased 1.95% in 2017.
Available inventory in Boise and throughout Ada and Canyon counties are at record lows. Based on months of inventory, there are just 1.13 months of available homes for sale in Boise. In Ada County, we saw available existing homes for sale drop to 644 in December. In January we saw available homes for sale drop to 561, 44.1% less than in January of 2016.
2017 is bringing little relief to homebuyers. A monthly report doesn’t adequately reflect how quickly properties are selling. Of the 315 homes that listed for sale in January, 174 are either pending or already sold. In other words, they never “appeared as active”. In Ada County that amounted to 673 new listing of which 327 went pending or sold before the end of the month.
March is typically the first month of the Spring selling season in the Boise area. While we will see more homes for sale, demand will most likely keep pace. Buyers definitely need to be on their A game. Get help from an experienced agent early in the process and have your pre-approval ready to go. You need to know the market and be prepared to act.
As you would expect, the lack of inventory is relentlessly pushing prices higher. The price of existing homes for sale has increased 10.97% in the last twelve months pushing the median home price to $215,000 from $193,750 in January 2016.
We typically see a pickup in home shopping activity in January. The less than perfect weather we have been experiencing has kept some shoppers on the sideline. Many homebuyers are committed to purchasing a home before prices and mortgage rates head even higher. Combine that with a tremendous amount of already pent up demand and we are in for a tough spring real estate market.
Are We in a Housing Bubble?
Not even close. When we saw prices peak ten years ago, real estate was much less affordable than it is today. Many of the purchases at that time were being made by investors buying their fourth, fifth or tenth properties. A good part of the financing was based on low or no downpayment loans with a complete disregard for incomes and credit scores. Today, the majority of the demand is from real buyers who intend on living in the property. To get a home loan- a down payment, credit history, and income are required. Investors are making only a small part of real estate purchases.
In its simplest form, real estate market demand is driven by population. In Boise, the population has increased by 9% from 2006 to 2015. In Meridian, Idaho the population as increased by over 50% in the same timeframe. That is a lot of new demand.
In both the Ada and Canyon County real estate markets, home affordability is close to its long-term average. Low supply and high demand will continue to be the main factors pushing prices higher. Include the Treasure Valley’s strong job growth and inbound migration and it’s the perfect recipe for higher prices.
Advice for Buyers
For our homebuyers out there, monthly rents are surpassing would be mortgage payments. With low mortgage rates- choosing to buy a home instead of renting is making more sense now more than ever. Despite a fast moving market, our homebuyers are not only getting offers accepted but are taking advantage of excellent mortgage rates and payments that aren’t guaranteed to last long.
Lower priced homes are in very short supply. The key to purchasing a home right now is to know what you want and be prepared to make a quick decision. Lines for showings and bidding wars for the most desirable properties are commonplace. Presenting clean offers are the key. Don’t expect the seller to pay for everything or give a long list of demands.
Keep this in mind. Today, for $800 a month (with 10% down at 3.60%) you can purchase a $195,000 home. In 2006 the average mortgage rate was 6.41%, that same $800 would allow for $142,000 home purchase.
Local Real Estate Markets in March
While I refer to Boise, I'm commenting on the greater Treasure Valley area. All of these communities are very much interconnected both economically and physically.
- Median Sold Price $250,599
- Median Days on Market 21
- Total Sold 828
Home prices in Eagle have fallen 5% in 2017.
- Median List Price $369,900
- Median Sold Price $365,000
- Days on Market 68
- Total Sold 55
Home prices in Kuna have risen 6.71% in 2017.
- Median List Price $199,900
- Median Sale Price $205,000
- Days on Market 9
- Total Sold 47
Meridian is the fastest growing city in Idaho. 36% of the new construction homes being built in Ada County are in Meridian. Home prices in Meridian have risen 5.45% in 2017.
- Median List Price $272,450
- Median Sold Price $270,000
- Days on Market 38
- Total Sold 263
Home prices in Star have risen 11.88% in 2017.
- Median List Price $292,450
- Median Sale Price $293,450
- Days on Market 22
- Total Sold 28
- Median Sale Price $175,000
- Median Days on Market 29
- Total Sold 361
Home prices in Caldwell have risen 1.97% in 2017.
- Median List Price $152,940
- Median Sold Price $153,000
- Days on Market 14
- Total Sold 89
Home prices in Middleton have risen 13.58% in 2017.
- Median List Price $214,900
- Median Sold Price $216,555
- Days on Market 32
- Total Sold 31
Home prices in Nampa have risen 6.25% in 2016.
- Median List Price $172,495
- Median Sold Price $173,195
- Days on Market 19
- Total Sold 190
NOTE: Information in this market report was obtained from the Intermountain MLS (IMLS) on April 8, 2017. Deemed reliable but not guaranteed. All information refers to single-family homes. Current inventory is calculated on a three-month rolling average. We believe existing homes for sale are the best way to gauge current Boise home prices and Boise housing market conditions. New construction home prices are much more volatile and tend to exaggerate the numbers, particularly on a month to month basis.