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. Rates had been below 4% for since November of 2014. Between late October and mid-November, mortgage rates jumped by more than half a percent. To put it in perspective, a half of a percent increase is the equivalent of a $10,000 increase in sales price. Home sales typically increase when rates increase, but such a significant jump is unusual.
The Federal Reserve is set to meet next week with the odds of an interest rate increase at nearly 100%. Rates are likely to continue to move higher.
The cost of purchasing a home in the Boise real estate market has declined from the record level we saw in June but is little changed over the previous few months.
November 2016 Market Summary:
- The median list price increased to $233,864 in November (up 9.00% from 12 months ago)
- The median home price increased to $230,000 in November (up 7.98% from 12 months ago)
- Boise home sales increased to 441 in November (up 34.86% from 12 months ago)
- Median days on market increased to 20 days in November (unchanged from 12 months ago)
- Available homes for sale decreased to a 1.16 months supply in November (down 36.21% from 12 months ago)
- 30-year mortgage rates increased in November to 3.77% (down from 3.80% 12 months ago)
*Includes both new and existing home sales.
Existing Homes – November’s Boise median home price is $220,000. Down from the record high of $229,450 we set in June of this year. That is an 11.11 percent increase from $198,000 last year. The median price per square foot is currently $135, $6 short of the all-time high of $141 set nine years ago. In 2015 the median price per square foot was $121.
New Homes – The median New Construction home price in Boise was $288,700 in November. A decrease from the median price of $302,633 we saw in October. In 2015, the median new home price was $291,319.
Local Real Estate Markets in November
- Median Sold Price $245,000
- Days on Market 52
- Total Sold 846
Home prices are up 4.11% in Eagle YTD.
- Median List Price $392,000
- Median Sold Price $382,000
- Days on Market 17
- Total Sold 66
Home values are up 15.23% in Kuna YTD.
- Median List Price $207,400
- Median Sale Price $204,950
- Days on Market 15
- Total Sold 62
Meridian is the fastest growing city in Idaho. 36% of the new construction homes being built in Ada County are in Meridian. Overall home values are up 5.42% YTD.
- Median List Price $265,000
- Median Sold Price $265,000
- Days on Market 16
- Total Sold 231
Star home prices are up 4.10% YTD.
- Median List Price $259,900
- Median Sale Price $257,950
- Days on Market 21
- Total Sold 34
- Median Sale Price $159,100
- Days on Market 48
- Total Sold 367
Home prices are up 13.57% in Caldwell YTD.
- Median List Price $$149,900
- Median Sold Price $147,236
- Days on Market 26
- Total Sold 109
Middleton home values are up 9.10% YTD.
- Median List Price $215,987
- Median Sold Price $215,987
- Days on Market 5
- Total Sold 26
Nampa home prices are up 11.89% YTD.
- Median List Price $157,450
- Median Sold Price $157,125
- Days on Market 21
- Total Sold 196