We Know Boise Real Estate

Ada County's Housing Market Gains Momentum as Home Prices Jump 6.3%

Posted by Lisa Kohl on Friday, March 8th, 2024 at 6:28pm

Boise Market Report cover with text Rising Prices, Cautious Buyers and a luxury home exterior, indicating Ada County housing market growth.

In February, Ada County home price gains accelerated, primarily due to a scarcity of available properties.

Median home prices in Ada County jumped 6.3%, reaching $522,000—the largest yearly gain since August 2022. In neighboring Canyon County, prices rose 5.1% to $409,818.

Despite decreased demand compared to the post-pandemic years, the Treasure Valley real estate market remains more competitive than in 2023. A December mortgage rate dip reignited buyer interest, contributing to rising prices last month.

Home prices in Boise fell by 1.2% to $478,200. However, this decline is primarily due to the mix of homes sold. On a per-square-foot basis, prices leaped 10.4%.

Meridian stands out with particularly strong gains. Home prices surged by an impressive 15.8% compared to last February, reaching $549,000, the highest price recorded since the fall of 2022.

While prices rose, sales dipped last month due to low inventory and January's unusually snowy weather, which hindered property viewings.

Mortgage rates for 30-year loans ended the week of March 7 at 6.88%, slightly higher than at the year's start but lower than the multidecade highs seen last fall.

Many homeowners enjoying interest rates well below current levels are hesitant to move and lose their favorable rates, contributing to a limited supply of existing homes.

In Ada County, move-in-ready homes priced under $500,000 face intense competition, often resulting in bidding wars. Houses priced between $500,000 and $1 million also show strong demand. The market becomes more balanced over $1 million.

With rising home prices and still-elevated mortgage rates, buyers are prioritizing quality. They're seeking updated, turnkey homes and avoiding properties with deferred maintenance or needing significant renovations.

Location is also important, with homes far from amenities or requiring long commutes seen as less attractive.

This spring's housing market is proving to be all about supply. Interest rates are low enough to keep a steady stream of buyers heading to the market. It's what they find when they get there that will matter.

Inventory remains below normal, with a 1.78-month supply in Ada County and 2.03 months in Canyon County, far from the 4–6 months indicating a balanced market.

Some sellers are receiving multiple offers immediately after listing their properties, while others are struggling to attract interest. What's making the difference? It all comes down to pricing.

Buyers are becoming more selective and cautious about not overpaying. When a home is overpriced, it makes correctly priced homes seem like better deals. This results in more interest and offers for those reasonably priced homes and fewer for the unreasonably priced ones.

There isn't a lack of buyers; we continue to see what you expect in a slight seller's market: realistically priced properties selling quickly. However, due to elevated interest rates, monthly mortgage payments are higher now than when home prices were at record highs, making buyers more cautious.

Even in a seller's market, overpriced homes struggle to find buyers, making pricing strategy crucial for sellers this spring.

Graph showing median home prices in Ada County, Canyon County, and Boise, ID, with upward trend for Ada County.

Boise Real Estate Market Summary for February 2024

  • Median list price: $475,000, down $18,375 (-3.8%)
  • Median sold price: $478,200, up $5,795 (-1.2%)
  • Average price per square foot: $309 (10.4%)
  • Total home sales: 192 (down 30)
  • Median days on market: 16 days (down 29)
  • Available homes for sale: 1.17 month supply (up 0.04)
  • 30-year mortgage rate: 6.78% (up 0.52)

Treasure Valley Housing Market by Area

  • Ada County: $522,000, up $30,943 (6.3%)
  • Eagle: $765,000, down $64,900 (-7.8%)
  • Garden City: $480,000 (*fewer than ten sales)
  • Kuna: $469,495, up $64,505 (15.9%)
  • Meridian: $549,000, up $75,000 (15.8%)
  • Star: $512,995, down $119,455 (-18.9%)
  • Canyon County: $409,818, up $19,873 (5.1%)
  • Caldwell: $382,400, up $36,905 (10.7%)
  • Middleton: $427,400, down $134,755 (-24%)
  • Nampa: $410,000, up $17,550 (4.4%)

Boise Real Estate Agent Lisa Kohl

Lisa Kohl

Lisa carefully studies the local housing market to give her clients the edge when buying or selling a home in Idaho. We Know Boise is a full-service real estate team that combines our LOCAL expertise with traditional know-how to create exceptional results for each of our clients.

Email Lisa

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Select information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on March 8th, 2024, and is deemed reliable but not guaranteed. City data refers to single-family homes on less than one acre, while county data includes homesites of all sizes. Months of supply is calculated on a 12-month rolling average. Combining existing homes for sale with new construction is the best way to gauge current home prices and Boise housing market trends. New house prices can be more volatile and can make comparisons, particularly on a month-to-month basis, less reliable.

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