The median single-family home price finished the year at $324,000 in Ada County, up 17 percent from last December.
Missing the all-time high we saw in August, but still the second highest on record.
Thanks to new construction, the total number of homes for sale rose by 6.8 percent to 1,493. While notable for being only the second increase in inventory in more than four years, it will do little to put downward pressure on prices in the next few months.
Over the last 12 months, Boise house prices rose 11.79 percent to $292,400. In Canyon County, the median cost of a home increased by 18.09 percent to $225,495.
Total sales in Ada County declined to 709 from 829 twelve months prior, mainly due to the fact there is so little on the market. Buyers are preferring to wait it out rather than settle for something that doesn't meet their needs.
At 1.60 months of supply in Ada County, inventory is the lowest its been since last June. For buyers, it may be a little disheartening right now with January offering so little to choose from, but keep in mind, as we move into spring that will change. For sellers, that trend is working against you. (If you want to set a new record for your neighborhood, list by March)
The gift of lower mortgage rates
30 year fixed mortgage rates have declined nearly 0.5 percent over the last seven weeks and are now at the lowest level since last summer. That makes a big difference in affordability. For the typical buyer that nearly doubles the number of homes for sale you have to choose from.
As we move into the beginning of the year, I’m seeing a lot of pent up demand. Combined with lower rates, we can expect a solid first quarter.
As I described in my Boise housing market forecast, we are not going to have another year of 20% plus appreciation. At this point, it's looking like most of the price growth we can expect in 2019 is going to happen early in the year.
In a way, we will see a repeat of what we saw last year. A big run-up of prices early on followed by a plateau in the second part of the year - just a bit more extreme.
Start sooner than you think
If there is a common regret I hear it's “I wish I would have started the process sooner.” This tends to be the most common with the two-thirds of people that are both buying and selling.
Unless money is no object or you are willing to settle for anything with four walls and a roof, give yourself twice as long as you think you will need.
I can help you find, or sell, a home in a weekend but it will be less stressful and more financially rewarding if you give yourself some breathing room.
It’s not your imagination; you really aren’t seeing all the listings
Up until the late 1990s, you had to get a newspaper or a real estate magazine to actually see what was for sale. Chances are, by the time you got up to speed, your real estate agent had already found you a house.
Then, between 2006 and 2014 we saw a significant increase in the availability of real estate listings online. At the same time, the recession created a massive drop in demand.
With a home taking six to twelve months to sell, for the first time we saw something we hadn't seen before, 95% of listing were ending up online.
As we shifted back to a more balanced market and eventually a seller’s market, homes are again selling before ever needing to be advertised on the open market.
In some of the most popular neighborhoods, 80% of all transactions take place without so much as a for sale sign in the yard, let alone an online listing.
Ultimately, a real estate agents’ job is to find buyers for their sellers and sellers for their buyers. In fact, nearly a third of our buyers have purchased an off-market deal we found for them.
For buyers, off-market properties not only give you a better selection but in most cases better prices too.
The reverse is also true. I always advise sellers to avoid “pocket listing.” You will almost always get a better price with the extra exposure of going to market.
When working for sellers, our goal isn't to sell it off market but to do an abundance of premarketing to generate as much buzz as possible. We want a long line of buyers anxiously waiting to see the property when it finally does list.
Hire a pro, be patient and plan ahead.
Boise Real Estate Market
- Median list price - $293,400 (up 10.76%)
- Median sold price - $292,400 (up 11.79%)
- Price per square foot - $180 (up 18.42%)
- Total home sales - 300 (down from 399)
- Median days on market - 17 days (down 3 days)
- Available homes for sale - 0.97 months supply (down from 0.95)
- 30-year mortgage rates - 4.54% (up from 3.95%)
Housing Markets by Area
Median sales price:
- Ada County - $323,000
- Eagle - $481,506
- Garden City - $256,000
- Kuna - $249,855
- Meridian - $344,990
- Star - $379,950
- Canyon County - $225,495
- Caldwell - $207,000
- Middleton - $255,000
- Nampa - $224,000
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Information in this market report was obtained from the Intermountain MLS (IMLS) on January 8th, 2019. 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.