The median sales price for homes in Boise from August 1st to August 31st is $255,000 based on 539 home sales. The average price per square foot for Boise is $148, an increase of 9.63% compared to the same time last year. August 2017 housing market summary:
The median list price increased to $259,700 (up 12.96% from 12 months ago)
The median sold price increased to $255,000 (up 12.09% from 12 months ago)
Total home sales increased to 539 (up 3.72% from 12 months ago)
Median days on market rose to 12 days (up 1 day from 12 months ago)
Available homes for sale increased to a 1.74 months supply (down 6.54% from 12 months ago)
30-year mortgage rates declined to 3.88% (up from 3.44% 12 months ago)
*Includes both new and existing home sales.
Boise Market Summary and Outlook
The Seller's market continues. Boise home values have increased 6.37% in 2017.
Ada County home prices have increased 11.07 percent over the previous 12 months and now stand at $269,900.
Canyon county prices are up 9.81 percent since last July finishing the month at $185,501. The sixth record in six months.
Nationally home prices are up 5.6 percent with Seattle 13.3%, Portland 8.9% and Denver 7.9% leading the way. (per the Case-Shiller home price index, released July 25th)
Ada values dipped slightly from June to July, with Canyon showing an increase. Both typical for this time of year.
Available homes for sale are at the highest level we have seen this year, but at 1,934 (2.12 months) Ada County inventories are below what we saw this time last year by about 12 percent. Similarly, inventory is down 8.5 percent in Canyon County.
Total home sales in Ada declined in July to 1,083 from 1,206 in June.
Summer has put a slight dent in demand as home buyers tend to take a breather beginning in June. The combination of aggressive pricing by home sellers and the typical mid-year break is keeping a limit on bidding wars. July is the first month since early spring sale prices have not exceeded asking values (list price to sale price ratio).
Year to date we continue to see the biggest price gains in the lowest cost areas. Middleton (median price $212,900) and Kuna (median price $210,000) are leading the way with values up 19.71% and 12.06% respectively. In addition to greater affordability, the increase in new construction activity is helping to push pricing to new highs.
Are We in a Housing Bubble?
Not even close. When we saw prices peak ten years ago, real estate was much less affordable than it is today. Many of the purchases at that time were being made by investors buying their fourth, fifth or tenth properties. A good part of the financing was based on low or no downpayment loans with a complete disregard for incomes and credit scores. Today, the majority of the demand is from real buyers who intend on living in the property. To get a home loan- a down payment, credit history, and income are required. Investors are making only a small part of real estate purchases.
In its simplest form, real estate market demand is driven by population. In Boise, the population has increased by 9% from 2006 to 2015. In Meridian, Idaho the population as increased by over 50% in the same timeframe. That is a lot of new demand.
In both the Ada and Canyon County real estate markets, home affordability is close to its long-term average. Low supply and high demand will continue to be the main factors pushing prices higher. Include the Treasure Valley’s strong job growth and inbound migration and it’s the perfect recipe for higher prices.
Advice for Buyers
For our homebuyers out there, monthly rents are surpassing would be mortgage payments. With low mortgage rates- choosing to buy a home instead of renting is making more sense now more than ever. Despite a fast moving market, our homebuyers are not only getting offers accepted but are taking advantage of excellent mortgage rates and payments that aren’t guaranteed to last long.
Lower priced homes are in very short supply. The key to purchasing a home right now is to know what you want and be prepared to make a quick decision. Lines for showings and bidding wars for the most desirable properties are commonplace. Presenting clean offers are the key. Don’t expect the seller to pay for everything or give a long list of demands.
Keep this in mind. Today, for $1,000 a month (with 10% down at 3.90%) you can purchase a $236,000 home. In 2006 the average mortgage rate was 6.41%, that same $1,000 would allow for $178,000 home purchase.
About the Author
Lisa Kohl is a professional real estate agent in Boise, Idaho. We provide you with LOCAL expertise and exceptional results. Questions or feedback? Send Lisa a message. Lisa founded the We Know Boise team at WeKnowBoise.com, with the goal of redefining the real estate experience in the client’s favor. Lisa carefully studies the Boise real estate market to give her clients the edge when it comes to buying or selling a home in Idaho.
NOTE: Information in this market report was obtained from the Intermountain MLS (IMLS) on September 8th, 2017. 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.
Ada County’s median single-family home price increased 9.49 percent in August from a year ago, setting a new record high price of $278,995. This surpasses the previous record of $272,770 set in June of this year.
'It's Deja Vu All Over Again'. In 2016 we set an all-time record in June that was surpassed two months later in August. This was a repeat of what we saw in 2014. In 2015 prices rose steadily throughout spring and summer and didn’t peak until November.
In Boise, the median price hit $255,000 up 12.09 percent from a year ago, also a new record.
Canyon County prices are up 10.94 percent to $183,000 from last year, but down $2,501 from the record price set just last month. This is only the second time this year Canyon County has not set
Ada County home prices have increased 11.07 percent over the previous 12 months and now stand at $269,900.
Canyon county prices are up 9.81 percent since last July finishing the month at $185,501. The sixth record in six months.
Nationally home prices are up 5.6 percent with Seattle 13.3%, Portland 8.9% and Denver 7.9% leading the way. (per the Case-Shiller home price index, released July 25th)
Ada values dipped slightly from June to July, with Canyon showing an increase. Both typical for this time of year.
Available homes for sale are at the highest level we have seen this year, but at 1,934 (2.12 months) Ada County inventories are below what we saw this time last year by about 12 percent. Similarly, inventory is down 8.5 percent in
Summer brings hot temps and sizzling prices to the Boise area real estate market. Throughout the Treasure Valley, home values saw new highs.
Single-family homes in Ada County hit a new median high of $272,770 breaking the previous record set just last month. The typical property was on the market for 12 days and sold for $2,770 over the asking price. Boise house prices jumped to $254,900 with a low days on market of just 7.
Homes in Canyon County finished the month at $183,000 which is the fifth record high in as many months.
The good news for homebuyers is there are more homes for sale now than at any other time this year. In Ada County alone there 1,930 homes for sale. While below the 2,117 active listing available last June, this
Ada County single-family home prices hit a new high of $261,975 in May. This surpasses the previous record high of $258,445 we set in February of this year. Home prices are up 9.16% since May of 2016.
On average, houses for sale are selling for $700 over list price with a median of 9 days on market.
Active inventory dropped to just 1,786 active listings, down 327 from May of 2016. For some perspective, a 4,000 to 6,000 would be in line with a balanced market based on current home sales.
Boise’s new single-family median home price is $243,450, up from $239,700 the previous high set in February of this year. The typical home sold for $3,450 above list price in May, 101.44% of the price the seller was expecting to receive.
Treasure Valley homes spent fewer days on the market than just about any time in history.
In Boise median days on market fell to just six in April. Throughout the Treasure Valley, it is very much the same story for single-family properties. Ada County days on market dropped to a breathtaking nine from 21 in March. At the same time last year houses were selling in 14 days.
Day on market in Canyon County decreased to 9 in April from 26 the previous month. In April of 2016 homes were selling in 14 days as well.
According to the most recent national data, Denver, CO, and Seattle, WA, are the fastest-selling markets in the country. In both cities, the typical home was under contract in just eight days. The next fastest selling were 13 and 14 median days on
The median price of single-family homes sold in Canyon County in March jumped 12.90 percent over the year to a new record of $175,000. The previous record was set in January of 2007 when home values hit $170,000.
In March of last year, the median Canyon County home price was $155,000.
No matter how you look at it, area home prices are up dramatically. While we have definitely seen a pickup in inventory, we are still much closer to record lows than any type of balanced market.
In Canyon County, the median days on market are 26. In other words, the amount of time between when the property is listed on the market until it goes pending is just under four weeks. Typically it takes an additional 30 to 45 days for the transaction to actually close. The home
The median single-family home price in Ada County hit a record $258,445 in February surpassing the previous high of $239,588 set in June of 2016. In February of 2016, the median sale price was $235,000. Home prices are up 9.98% over the previous 12 months. The median sales price is up 95.41% since hitting a near term low in March of 2011.
New construction homes were the biggest driver with prices jumping to $339,970 from $299,985 last year. There just isn't enough new construction being built to fulfill the demand. In 2005 we saw 4,849 new construction homes sell in Ada County. In 2016 just 2,604 were sold.
Resale homes finished the month at $224,500 up from $212,950 in February of 2016.
The lack of available homes for sale is the primary
Available inventory in Boise and throughout Ada and Canyon counties are at record lows. Based on months of inventory, there are just 1.13 months of available homes for sale in Boise. In Ada County, we saw available existing homes for sale drop to 644 in December. In January we saw available homes for sale drop to 561, 44.1% less than in January of 2016.
2017 is bringing little relief to homebuyers. A monthly report doesn’t adequately reflect how quickly properties are selling. Of the 315 homes that listed for sale in January, 174 are either pending or already sold. In other words, they never “appeared as active”. In Ada County that amounted to 673 new listing of which 327 went pending or sold before the end of the month.
Boise home values finished 2016 with an 8.76% increase. After hitting a record high in June of $237,600 prices declined slightly in July. For the rest of the year, values remained unchanged to finish the month of December at a median value of $230,000.
At first, that might seem surprising considering the local real estate market is still sizzling. The reality is, the only reason prices aren’t even high is due to the lack of supply. At the beginning of January, Boise had approximately 500 homes for sale. Based on current sales this is the lowest inventory we have seen in nearly ten years.
Home buyers continued shopping for new homes through November and December with no real slowdown. Rising mortgage interest rates and tight inventory levels being the
Total home sales in Boise for the month of November increased by almost 35% from the same month last year. 35% is a massive increase; the fact that it happened in November is even more astounding. While home prices typically hold steady during the fall months in the Boise, ID the number of homes sold usually drops.
Near record low levels of inventory in October encouraged last minute shoppers off the sidelines, particularly for those that expected to move into a new home before the Holidays. Buyers that had been looking for an extra bedroom have been more likely to forgo that in exchange for a more budget friendly price.
Despite the low supply of available Boise homes for sale, buyers have been benefiting from historically low mortgage interest rates.
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