Four-Year Decline in Supply Sends Boise Housing Prices to New Highs
Posted by Lisa Kohl on Monday, September 10th, 2018 at 3:15pm
Prices in the Boise real estate market saw new record highs in August as the number of homes for sale declined for the 48th month in a row.
Ada County’s median single-family house price increased 19.68 percent from the same time twelve months ago, hitting a new record high of $333,900.
With so little to choose from, homes are selling in a median 10 days, the quickest recorded for this time of the year.
In Boise, prices jumped 20.18 from August a year ago to a record $306,450.
Canyon County median home prices grew by 20.22 percent from a year prior. The new median single-family home cost across the county is $220,000. Although, that’s down slightly from the previous record set last month.
In August of 2017, the Ada County housing market set a new record that was followed by further new highs in January 2018, then again in February, March, June and of course August.
Setting a new record in late summer isn’t a surprise, in fact, in three of the last four years prices peaked in August (the other was November).
While demand for homes continues to increase, the supply of available housing continues to decline.
There are currently 1,725 homes for sale in Ada County, a 13.5 percent decline, and the fewest of any September since 2012. Of those 1,725 listings, 530 are new construction homes listed as under construction or “to be built”. In other words, they are not real inventory.
In Canyon County, it is very much the same story with 663 available houses for sale, a year over year decline of nearly 29 percent.
Looking ahead
Locally, we see a significant decline in new listings beginning in September. The seasonal trend of inventory building up through the summer reverses itself to the point of a 40% decline in available homes for sale by December.
Combined with the fact that since 2012 listing in fall has brought higher prices than spring, this is great news for sellers.
September and October can be two of the best months to buy. Inventory is at its highest and sellers who overpriced during the summer are much more motivated to make a deal.
Neighborhoods by the Numbers
Homes are selling the fastest on the Boise Bench (5 days), in South Boise (5 days), West Boise (7 Days) and Southeast Boise (7 days). Properties are on the market longest in Southwest Meridian (29 days), Southeast Meridian (24 days) and Eagle (22 days).
Boise Real Estate Market
The average price per square foot for Boise is $173, an increase of 20.41 percent compared to the same time last year. Boise housing market summary:
- Median list price - $312,000 (up 19.64%)
- Median sold price - $306,900 (up 17.91%)
- Total home sales - 535 (down from 550)
- Median days on market - 7 days (down 5 days)
- Available homes for sale - 1.33 months supply (down from 1.74)
- 30-year mortgage rates - 4.55% (up from 3.88%)
Housing Markets by Area
Median sales price:
- Ada County - $333,100
- Eagle - $465,000
- Garden City - $201,500
- Kuna - $258,150
- Meridian - $339,950
- Star - $357,900
- Canyon County - $220,000
- Caldwell - $204,400
- Middleton - $245,750
- Nampa - $220,000
Lisa Kohl
Treasure Valley Realtor Lisa Kohl loves what she does. It shows in her attitude, in her work, and in the many reviews written by her past clients. 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.
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NOTE: Information in this market report was obtained from the Intermountain MLS (IMLS) on September 9th, 2018. Deemed reliable but not guaranteed. All information refers to single-family homes. Current inventory is calculated on a twelve-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.
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