Scarce Listings Push Boise Home Prices to New Highs
Posted by Lisa Kohl on Thursday, March 8th, 2018 at 4:57pm
Median home prices throughout Ada County shattered records last month as the Treasure Valley real estate market continues its relentless upward trend.
Boise’s median single-family home price rose to $275,000 in February, up $19,000 from the previous all-time high set just last month.
The median house cost in Ada County soared to $297,500, an increase of $18,000 from the prior months high.
In a rare divergence, Canyon County prices climbed just $550 to $195,000, albeit also a new record.
The total number of homes in Ada County dropped to a 1.27 month supply, while inventory in Canyon County decreased to 1.38 months. As we have seen over the last four years, more homes are selling every month than new homes are being listed.
Again this year, pent-up demand and a seasonal shortage of homes for sale have lead to significant increase in values. On a year over year basis, total house sales in Ada County reached a twelve-year high in February. The total number of single-family homes on the market fell to 1,189, down 20 percent from 1,484 last year.
The trend continues to show strong prices gain throughout the local area. Both Ada and Canyon County home values are up more than 14 percent over the last twelve months.
As a recent Forbes article pointed out, Boise had the second highest job growth and the sixth highest wage growth in the country in 2017. Forbes notes, "[Boise’s] got the pieces in place. It's got the location, it's got low cost, a healthy tech presence."
Driven in part by a booming tech scene the Boise housing market continues to benefit from people, and businesses, bypassing higher priced areas like California, Seattle and Denver.
Recent price increases have been driven mostly by resale homes as is typically the case this time of year. Over the previous 12 months, new construction prices are up nearly 7 percent vs. 22 percent for existing homes.
If you are considering purchasing new construction, now is the time, as March, April and May are when builders implement the largest price increases of the year. Last spring it wasn't uncommon to see a weekly rise new house prices.
In addition to more jobs and higher incomes, affordability has been one of the biggest drivers of higher home values both locally and nationwide.
The increase in home prices (which typically makes real estate less affordable) over the last four years has been partially offset by, you guessed it… lower mortgage rates.
The average 30-year fixed rate hit 4.46 percent this week, the ninth such increase in as many weeks. Since the beginning of the year rates are up 0.51 percent, to the highest level since January 2014.
Of the 660 sales that took place in Ada County last month, 17 percent were true cash sales, meaning 83 percent were financed. Interest rates matter to the vast majority of home purchases.
Higher home values typically benefit sellers and lower home prices benefit homebuyers. Higher interest rates don’t help anyone.
February Boise Real Estate Market
The average price per square foot for Boise is $159, an increase of 11.19 percent compared to the same time last year. Boise housing market summary:
- Median list price - $276,950 (up 15.16%)
- Median sold price - $275,000 (up 14.35%)
- Total home sales - 296 (up from 256)
- Median days on market - 18 (down 7 days)
- Available houses for sale - 0.78 months supply (down 21%)
- 30-year mortgage rates - 4.33% (up from 4.17%)
Idaho Real Estate Markets in February
- Median List Price $298,450
- Median Sold Price $297,500
- Days on Market 26
- Total Sold 660
- Median List Price $472,650
- Median Sold Price $467,750
- Days on Market 70
- Total Sold 62
- Median List Price $238,195
- Median Sale Price $236,600
- Days on Market 26
- Total Sold 56
- Median List Price $304,750
- Median Sold Price $305,000
- Days on Market 27
- Total Sold 185
- Median List Price $299,990
- Median Sale Price $307,160
- Days on Market 33
- Total Sold 33
- Median List Price $194,895
- Median Sale Price $195,000
- Days on Market 26
- Total Sold 296
- Median List Price $175,000
- Median Sold Price $174,990
- Days on Market 22
- Total Sold 77
- Median List Price $224,900
- Median Sold Price $222,160
- Days on Market 55
- Total Sold 29
- Median List Price $195,000
- Median Sold Price $197,990
- Days on Market 20
- Total Sold 163
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 March 8th, 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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