We Know Boise Real Estate

Ada County Inventory Surges 37% as Home Prices Hit a New Two-Year High

Posted by Lisa Kohl on Tuesday, July 9th, 2024 at 1:15pm

Ada County housing inventory surges 37%, home prices reach two-year high - Boise Market Report

Ada County home prices hit a fresh two-year high in June, reaching their highest level since July 2022.

The median price for a single-family home in Ada County increased to $569,990, reflecting a year-over-year increase of 4.6%. Similarly, Boise's home prices saw a 6% jump to $556,500.

This rise was primarily due to a higher number of expensive homes being sold rather than an increase in prices. On a price-per-square-foot basis, home prices in the county were slightly below April's levels.

Canyon County home prices rose to $424,945 in June, marking a 4.9% increase over the past year. As homes usually go under contract one to two months before the sale closes, June's data reflects purchase decisions made earlier in the spring.

Local home prices surged at the beginning of the year as falling mortgage rates brought a rush of buyers into a market short on supply. As the year progressed, strong economic data rekindled inflation fears, sending interest rates to a 2024 high at the end of April. Since then, mortgage rates have been on a slow but steady decline, beginning with July at 6.95%.

Rising prices and elevated mortgage rates have driven up monthly payments. As a result, home sales have remained near multi-year lows.

In the first half of 2024, new listings rose while sales remained flat compared to the previous year, leading to a growing supply of homes. Active listings in the Treasure Valley are up 37% from last year, indicating that demand isn't matching the rising inventory.

Traditionally, a balanced market has about five months of supply, but at 2.89 months, we remain below that benchmark. However, this supply is higher than what the Treasure Valley has gotten used to, as we have essentially been in a continuous seller's market since 2015.

For those who haven't bought or sold a home in the last nine years, today's market may not seem much different from what you remember, but for recent movers, this market may feel unexpectedly "normal."

The rapidly changing dynamics of 2024 have created a disconnect between homebuyers and sellers. Buyers see the increasing supply and expect a discount, whereas sellers see home prices at multi-year highs and believe they have the upper hand. In reality, both are on nearly equal footing, with neither side having a clear advantage.

Think of it as a game of musical chairs, with an equal number of chairs and people looking for places to sit. While there may be a bit of chaos in the short run as some people go after the same chairs and other seats remain empty, the imbalance is minimal and short-lived.

Ultimately, there won't be much of a fight for chairs (homes), and players (buyers) won't be able to be too picky either because while there is enough for everyone, there aren't any extras.

Interest rates tend to get volatile, and demand tends to taper off ahead of presidential elections. While the effects tend to be short-lived, expect sales to slow heading into November. Even in non-election years, there tend to be fewer sales in the fall and winter months.

Overall, the market is shifting toward a more balanced state, offering opportunities for both buyers and sellers if they navigate carefully. In this environment, realistic pricing strategies, thoughtful property improvements, and expert marketing are crucial for sellers. Meanwhile, buyers will benefit from more choices and increased negotiating power without the pressure of bidding wars.

 

Chart showing Treasure Valley median home prices from June 2023 to June 2024, fluctuating slightly with a general upward trend.

Boise Real Estate Market Summary for June 2024

  • Median list price: $557,000, up $26,375 (5%)
  • Median sold price: $556,500, up $31,500 (6%)
  • Average price per square foot: $316 (up 2.3%)
  • Total home sales: 266 (down 70)
  • Median days on market: 9 days (up 3)
  • Available homes for sale: 2.25 month supply (up 0.7)
  • 30-year mortgage rate: 6.92% (up 0.21)

Treasure Valley Housing Market by Area

  • Ada County: $569,990, up $15,109 (4.6%)
  • Eagle: $865,000, up $80,000 (10.2%)
  • Garden City: $699,285 (*fewer than ten sales)
  • Kuna: $450,000, up $10 (0%)
  • Meridian: $547,450, up $12,450 (2.3%)
  • Star: $549,900, down $20,100 (-3.7%)
  • Canyon County: $424,945, up $19,945 (4.9%)
  • Caldwell: $380,040, up $5,040 (1.3%)
  • Middleton: $569,950, up $120,050 (26.7%)
  • Nampa: $421,382, up $15,432 (3.8%)

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 July 9th, 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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