The median price for Ada County in February was hovering just over $520,000 an increase from last year In Canyon County, the median price increased by nearly 5% with a median price of $410K. Why the sudden increase this early in the season? Let’s dive into the trends driving the Boise Real Estate Market Facts and Trends – March 2023
Take a Look at the Boise Area Real Estate Market Facts and Trends for March 2024
Ada & Canyon Counties Home Prices Trend Upwards
Ada and Canyon counties, two pivotal areas in Southern Idaho, have experienced a notable uptick in home values from January to February 2024, primarily due to a scarce housing inventory. As of March 1st, Ada County reported 512 single-family homes on the market, marking a decrease of 95 homes compared to the previous year. This scarcity, coupled with a dip in mortgage interest rates at the year’s start, has intensified buyer competition, following the classic supply and demand principle.
Shifting Inventory Dynamics
The interest rates are playing a role in the inventory we are seeing entering the market and will have an effect on overall home prices, but there have been so many buyers on the sidelines in anticipation of lower rates and are now starting to emerge back into the market. Other states that typically provide buyers to the Treasure Valley market are starting to soften and once these buyers can sell their homes in their current place of residence we can expect the buyer pool to surge again in the Boise area. More buyers on the market, even with an uptick of homes coming for sale will most likely tip the market back into a seller’s market as demand surpasses supply. We can expect it will be less dramatic than in the pre-COVID and COVID years, but buyers should prepare to start seeing homes go pending much sooner and multiple offers may become the norm again.
A Few Key Facts
The beginning of the year traditionally sees a slowdown in home sales, attributed to post-holiday work resumption and inclement weather, affecting buyer mobility. Despite this seasonal trend, home prices have risen. However, sales volume has dipped. The average days on market for homes in Ada and Canyon counties were 27 and 30 days, respectively, in early 2024. Notably, homes under $500,000 in Ada County are selling swiftly, often at full asking price, with bidding wars in some cases. Conversely, homes priced over $600K are taking longer to sell, with those at the $1M mark requiring 3-6 months to find buyers.
Mortgage interest rates continue to significantly influence the housing market, making homes more accessible and thereby increasing buyer activity. A softening market in other states is anticipated to further boost the buyer pool in Boise as sellers elsewhere can move more freely.
Current buyer trends highlight a demand for homes conducive to remote work, sustainability, smart technology, wellness amenities, and co-living spaces. These preferences are important for sellers to consider when updating or staging their homes.
2024 is gearing up to be another year of a shifting market. Rates have come down from last year, bringing more buyers and are expected to continue decline, but not to the low rates we saw a few years ago. They will slowly trickle down, and this will bring on more and more buyers as homes come within their affordability range. With more buyers we can expect home prices to go up in both Ada and Canyon County, not dramatically, but a steady incline. The fact is, Idaho still remains a very desirable place to live for many relocating from other states.
Buyer Opportunities
I feel like a broken record, but there are still great opportunities for buyers out there right now. Homes that have lingered on the market for over 21 days and remain vacant may be more inclined to negotiate on price. Having a seasoned agent like Jennifer Louis, a real estate and relocation expert specializing in Boise and the Treasure Valley, is invaluable for understanding when and how to negotiate effectively in the current market.
Despite the competitive market, there are still advantageous opportunities for buyers, particularly in securing deals on homes that can potentially lower their monthly expenses compared to renting. Idaho offers various programs to assist first-time buyers with down payments and closing costs.
For personalized advice on navigating the Boise real estate market, reaching out to a seasoned agent like Jennifer Louis can provide invaluable insights and negotiation strategies.
Talk to an Expert
It’s imperative to talk to a real estate professional who understands the market you are buying and selling in to truly understand the best timing to sell and buy. There are a lot of opinions out there on the Internet, or even trusted friends, colleagues, and family, but unless it’s coming from someone with the pulse on the market you are dealing in, you might be getting the wrong data and that could potentially cost you thousands. 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.
