The median price in both Canyon and Ada Counties has increased as of April 1, 2024. In Ada we saw a 14.4% increase from the same time last year and in Canyon County a nearly 5% increase. Home prices have gone up, but so has inventory, yet bidding wars are not the norm. In fact, even with the price increase it may feel different to sell your home this year than in past markets with increasing prices. Let’s dive into the trends driving the Boise Real Estate Market Facts and Trends – April 2024
Take a Look at the Boise Area Real Estate Market Facts and Trends for April 2024
Rising Home Values and Shifting Market Dynamics
This year, home values have continued to rise, alongside a reduction in days on the market. As we step into the Spring market, there’s a noticeable increase in inventory. However, this doesn’t necessarily signal a surge in buyers. With interest rates fluctuating within the high 6-7% range, the appeal of selling homes with lower rates and purchasing at higher rates diminishes. Currently, there are fewer buyers compared to previous years, which can be attributed to the low overall inventory despite the increase.
As we transition from Spring to Summer, if rates decrease, we may see a gradual rise in home prices again. Buyers are cautious, paying over the odds, resulting in fewer bidding wars and multiple offers than we’ve seen in similar past markets.
Interest rates are crucial in shaping the inventory entering the market and will impact home prices significantly. Many buyers have been on the sidelines, awaiting lower rates, and are now re-entering the market. States that typically feed buyers into the Treasure Valley are softening, which might boost the buyer pool in Boise once these individuals sell their current homes. This could potentially shift the market back to favor sellers as demand might surpass supply, though less dramatically than during the pre-COVID and COVID years.
Spring Insights: A Time of Opportunities and Cautions
Spring is a season of increased home prices as more buyers join the market. A slight dip in interest rates could bring back buyers who were previously priced out. Despite this, buyers remain apprehensive about overspending and taking on homes that might require significant updates or repairs. Interestingly, even though home prices are going up, most homes are still selling under the asking price if we include concessions offered. For example in March 2024, 63% of homes in Ada County sold under the asking price if you look at final sales price and concessions offered. In Canyon County 79% sold under the asking price.
Notably, a large percentage of homes are selling below asking price once concessions are considered—63% in Ada County and 79% in Canyon County as of March 2024.
For sellers, it’s important to note that homes are taking longer to close, with buyers opting for extended inspection periods and less likely to agree to rent-back arrangements. Sellers should be prepared for a closing window of 45 to 60 days post-acceptance.
Rates are likely to stay elevated through the summer, influencing buyer behavior. Sellers should ensure their homes are in prime condition to attract the best offers, and be ready for negotiations involving more credits and a longer selling process. Buyers can benefit from the extended market time to make well-considered decisions, including thorough inspections like sewer scopes or fireplace checks.
Talk to an Expert
In a fluctuating market, it’s essential to consult a real estate professional who deeply understands local dynamics. Online opinions and advice from acquaintances may be well-intentioned but can lead to costly mistakes. For personalized guidance on navigating Boise and the wider Treasure Valley market, consider scheduling a consultation with Jennifer Louis, your Boise Metro Area Real Estate Expert. Contact me at (208) 509-9122 or via email at jenn@boiseandbeyondrealty.com To set up an appointment.Set an appointment today to understand the market trends in Boise and the surrounding Treasure Valley with Jennifer Louis, Boise Metro Area Real Estate Expert at (208) 509-9122 or jenn@boiseandbeyondrealty.com.
