Seasonality Evaporates in Boise’s Hot Housing Market
Posted by Lisa Kohl on Friday, February 9th, 2018 at 12:44pm
Treasure Valley home prices reached new highs in January with both Ada and Canyon counties setting new records.
Single-family median home prices jumped 16.63 percent in the Ada County to $279,900. The largest year over year increase in four years. Early bird sellers are benefiting from the lack of competition with packed open houses and multiple offers on anything under $220,000.
Prices in Canyon County leaped an astounding 21.46 percent to finish the first month of the year at $194,450. An appreciation rate we haven’t seen in since 2014.
The median price of a single-family home in Boise grew 13.93 percent to $256,000. Total number of homes on the market fell to a 0.76 month supply.
Keep in mind that January 2017 was the peak of Boise’s “Snowmageddon”. The most snowfall we had seen in nearly 80 years. The difficulty of just getting around town combined with the barrage of school and even work closures kept homebuyers at bay.
The rare decrease in January home prices was short-lived. The weather pushed some higher priced sales into February setting new records that month and creating a strong start to the spring selling season.
While last winter’s weather explains part of the dramatic year-over-year price increases this month (2-4%), we continue to hit new highs based on the same facts we have seen over the last few years.
Lack of new inventory and high demand.
Canyon County has less than 1.5 months of supply and Ada, even less still. (4 to 6 months is considered balanced)
Available Ada County existing houses for sale have declined for 40 months in a row compared with the year prior.
The home is only half of it...
Over the near term, the most significant impact on affordability: mortgage rates. Having increased for the fifth week in a row, 30-year fixed rates jumped to 4.32 percent on Thursday (Feb 8th), up from 4.22 percent last week.
So far this year, rates have risen 0.33 percent (33 basis points) to the highest point since December 2016. The last time we saw higher rates was in April 2014.
Higher mortgage rates have an impact on both buyers and sellers.
Rates impact monthly payments which in turn affect purchasing power. In simple terms, for every 1% increase in mortgage rates your purchasing power drops by 8%. In other words, you could be facing higher prices with a lower budget. Which for sellers - the result is fewer qualified buyers.
You have been hearing how great of a time it is to sell but record high home values are only half of it. If you are selling and buying another property, which most sellers are, you have been able to buy a larger/newer home for little more, or even the same monthly payment as you are paying now.
Higher rates can quickly offset any increase in higher values. If rates were to get back to the 6 plus percent rates we saw in 2008 you would lose $56,000 in purchasing power based on today’s home values.
January Boise Real Estate Market
The average price per square foot for Boise is $154, an increase of 13.24 percent compared to the same time last year. January 2018 Boise housing market summary:
- Median list price - $258,500 (up 14.94%)
- Median sold price - $256,000 (up 14.54%)
- Total home sales - 266 (down from 305)
- Median days on market - 20 (down 9 days)
- Available houses for sale - 0.76 months supply (down 35.04% from 12 months ago)
- 30-year mortgage rates - 4.03% (up from 3.95%)
Idaho Real Estate Markets in January
- Median List Price $280,000
- Median Sold Price $279,900
- Days on Market 28
- Total Sold 615
- Median List Price $465,000
- Median Sold Price $459,900
- Days on Market 69
- Total Sold 69
- Median List Price $219,945
- Median Sale Price $218,700
- Days on Market 59
- Total Sold 46
- Median List Price $291,900
- Median Sold Price $289,900
- Days on Market 22
- Total Sold 174
- Median List Price $275,000
- Median Sale Price $275,000
- Days on Market 56
- Total Sold 25
- Median List Price $193,400
- Median Sale Price $194,450
- Days on Market 28
- Total Sold 268
- Median List Price $167,784
- Median Sold Price $167,784
- Days on Market 20
- Total Sold 66
- Median List Price $234,900
- Median Sold Price $232,000
- Days on Market 14
- Total Sold 29
- Median List Price $182,450
- Median Sold Price $180,000
- Days on Market 29
- Total Sold 130
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 February 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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