Boise Home Prices Surge 20% As Seller’s Market Enters Ninth Year
Posted by Lisa Kohl on Friday, February 7th, 2020 at 11:33am
If January is any indicator, 2020 will not be the year of the Treasure Valley homebuyer.
With five new price records, 2019 marked the eighth consecutive year home prices have risen in the Boise Metro area. The first month of 2020 is showing a continuation of that trend with upward appreciation entering its ninth year.
The median single-family home price finished the month of January at $354,900 in Boise, up 20.31 percent from the year prior.
Over the last 12 months, house prices in Ada County rose 15.33 percent to a record $363,000. In 2011, the median home price was just $145,000.
For Treasure Valley home shoppers, there is little to choose from. The total supply of homes for sale in Boise dropped to an anemic 0.73 months. At 1.17 and 1.54 months, the supply in Ada and Canyon Counties is a little better but not by much.
A ‘balanced market,’ one where both buyers and sellers have an equal amount of negotiating power is typically considered four to six months of inventory. We haven’t seen anything like that since 2014.
The number of new active listings declined to 1,111 in and Ada County. To put that into perspective, a balanced inventory for this time of year would be closer to 3,500 listings.
Rising home prices will continue to make affordability an important issue throughout 2020.
Just how (un)affordable is the Boise real estate market?
A recent report from the National Association of Realtors shows what you more than likely already know. Treasure Valley housing affordability is dropping, fast.
The quarterly report shows that the Boise Metro area declined from the 108th most affordable in 2014 to the 153rd in the third quarter of 2019.
Despite family incomes jumping a healthy 18 percent during the nearly five year period, local home prices increased 75 percent.
Affordable or not, years of pent up demand, scarce listings, and mortgage rates at three-year lows will continue to push prices higher.
Avoiding unnecessary and costly mistakes as a seller
Half of the money spent on renovations when preparing to sell is wasted.
It starts with the desire to finish all the projects you have been putting off or just never completed. It's then compounded by spending too much time watching HGTV and thinking every dollar put into it will come back two-fold.
To make matters worse, the design is done in the seller’s taste without giving much thought to what buyers are actually looking for. By the way, it’s lighter hardwoods over darker floors, quartz countertops over granite, and (believe it or not) brass/gold fixtures or even chrome over brushed nickel.
You wouldn’t believe how many times I’ve seen homeowners unnecessarily spend $50,000, $100,000 even $200,000. We are in one of the greatest real estate markets in history, don’t blow it.
With a 30 minute consultation, I can not only make you more money but literally save you ten of thousands of dollars.
Boise Real Estate Market Summary for January 2020
- Median list price - $354,900 (up 20.35%)
- Median sold price - $354,900 (up 20.31%)
- Price per square foot - $202 (up 12.85%)
- Total home sales - 277 (up from 252)
- Median days on market - 26 days (up 7 days)
- Available homes for sale - 0.73 month supply (down from 0.89)
- 30-year mortgage rates - 3.62% (down from 4.46%)
Boise Metro Housing Markets by Area
Median sales price:
- Ada County - $363,000
- Eagle - $549,388
- Garden City - $266,000
- Kuna - $298,000
- Meridian - $359,900
- Star - $425,154
- Canyon County - $254,200
- Caldwell - $229,490
- Middleton - $367,000
- Nampa - $249,990
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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Information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on February 6th, 2020. 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. Current inventory is calculated on a twelve-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 are much more volatile and can create unreliable comparisons, particularly on a month to month basis.
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