Treasure Valley Home Sales Skyrocket: Ada County Sees 47% Jump in October
Posted by Lisa Kohl on Friday, November 8th, 2024 at 5:31pm
The Treasure Valley housing market is showing renewed momentum. After reaching a nine-year low, home sales have bounced back significantly since mid-year, largely thanks to easing interest rates and improved inventory.
In October, home sales in Ada County surged by 47% compared to a year ago, with Canyon County seeing a similar rise of 39%.
During the first half of the year, demand for homes slowed as fluctuating interest rates made it difficult for buyers to commit. Coupled with rising home prices, higher rates stretched budgets, making monthly payments less affordable.
However, in May, mortgage rates began to decline, sparking renewed buyer interest. Builders also offered incentives to lower buyers’ mortgage rates, further fueling demand.
Mortgage rates peaked at 7.22% this spring and then steadily fell to a two-year low of just over 6% by early September. They’ve since edged up, reaching 6.79% at the beginning of this month.
Despite the recent uptick, rates are still more than a full percentage point lower than they were at this time last year, drawing more buyers into the market than might be expected after seven weeks of rising rates.
Demand remains steady across the board, with even the luxury market showing resilience, as high-end buyers are often less impacted by rate increases, frequently making larger down payments or buying with cash.
The median home price in Ada County rose slightly from last month to $540,000, unchanged year-over-year. In Boise, home prices fell 3% over the past twelve months to $509,000. While the median home price in Ada County has held relatively steady over the past year, the price per square foot has risen as buyers prioritize quality and location, often choosing smaller homes to stay within budget.
Canyon County home prices experienced a modest 3% increase, with the median price rising to $414,000. The western part of the Treasure Valley tends to attract buyers seeking lower-cost alternatives to Ada County.
Despite an unusual uptick in new listings in October, inventory dipped slightly heading into November. Months of supply rose modestly from last year, reaching 2.56 in Ada County and 2.94 in Canyon County, with both levels favoring sellers.
With the holiday season approaching, November typically offers less competition for buyers, as fewer people are actively house-hunting. December can go either way; while traditionally slower, it saw record-setting prices just a few years ago.
Historically, home sales tend to rise in the year following a presidential election. Nationally, sales have increased in nine of the last eleven years after an election. If history is a guide, sales could continue to improve next year.
While many understand the impact of higher interest rates on homebuyers, limited inventory has had an even greater impact than many realize. Some buyers have put plans on hold simply because they haven’t found the right home. Anything that increases supply—such as stabilized interest rates or more new construction—could help drive further demand.
This limited supply has created opportunities for builders, as seen by an uptick in building permits in Ada County, with September filings at their highest level since early spring. This suggests a potential boost in supply going into 2025.
Many homeowners have mortgage rates below 4% and are hesitant to sell, keeping existing inventory tight. Although resale listings have increased this year, there is still pent-up demand from homeowners waiting for lower rates before selling.
Looking ahead, the direction of the Treasure Valley’s housing market in 2025 will largely depend on where interest rates settle. If mortgage rates hover around 7%, the market might slow down a bit. However, if they dip closer to 6%, and stay there, we could see more buyers coming in and more homeowners feeling confident enough to list their properties.
With inventory still tight and demand holding steady, it’s still a good time for sellers. For cash or mostly cash buyers, the current seasonal slowdown offers a great chance to secure a home before the usual spring rush.
Boise Real Estate Market Summary for October 2024
- Median list price: $500,000, down 6.5%
- Median sold price: $508,000, down 3.2%
- Average price per square foot: $312, up 0.7%
- Total home sales: 297, up 85
- Median days on market: 17 days, unchanged
- Available homes for sale: 2.11 month supply, up 0.07
- 30-year mortgage rate: 6.43%, down 1.19
Treasure Valley Housing Market by Area
- Ada County: $540,000, unchanged
- Eagle: $857,985, up 2.2%
- Garden City: $799,950, up 88.2%
- Kuna: $460,000, down 5.2%
- Meridian: $525,000, up 1.3%
- Star: $567,703, up 11.3%
- Canyon County: $413,990, up 3.5%
- Caldwell: $385,990, up 2.9%
- Middleton: $479,990, down 0.9%
- Nampa: $411,417, up 2.9%
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.
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Select information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on November 8th, 2024. While the data is deemed reliable, it is not guaranteed. City-specific data refers to single-family homes on less than one acre, whereas county-level data includes homesites of all sizes. The "months of supply" metric is based on a 12-month rolling average. Home prices mentioned combine both existing and new construction properties. Comparisons are based on year-over-year changes unless otherwise specified.
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