Boise Market Update
These days the question we get asked all the time is “what’s going on in the Boise real estate market?”
Post-pandemic, Boise has been in the media for entirely new reasons. Based on the record-breaking increase in prices national outlets continue to highlight Boise as a market primed for a downturn. It’s important to look past the headlines and talk about what we’re actually seeing in the market:
Lots of price reductions
Sales are strong, but slowing down
More inventory and choices for buyers
Demand has softened due to volatile mortgage rates impacting affordability for many buyers
Fewer relocation clients than last year
We’ve moved into a more balanced market between buyers and sellers. Prices are stabilizing. Houses are going under contract and being sold every day. There are still buyers actively looking. Pricing strategy is even more crucial than ever with the level of inventory and choices for buyers.
Dating back to before the pandemic, the Boise real estate market experienced a record-breaking surge. The demand from out-of-state buyers who were flush with cash drove prices to all-time highs. Today’s market may seem like a startling shift for homeowners who see for sale signs staying up much longer.
The fundamentals behind Boise’s record-breaking run have not changed. Idaho has been the nation’s fastest-growing state for five straight years. People moved to Boise for the quality of life, easy access to nature and recreation, and a multitude of other reasons. Idaho will continue to be an attractive place to live for these exact reasons.
During the market peak, we had tight supply and tremendous demand. Nowadays, this picture as completely flipped. Inventory levels have quadrupled from the mid 400s to nearly 1600 active homes from end of April to the end of July. Also, demand has softened due to mortgage rates in the 5% range that have impacted affordability for buyers.
As the market cools off from its frenzied pace, we expect there to still be strong sales and stable prices. We could even see an uptick in buyers looking to lock in their interest rates below 6%.
The long-term outlook on Boise real estate remains strong. We are here for you and would love to help answer any questions you may have.
