Spring brings many changes. Flowers bloom, birds return home, and the weather warms. In the real estate industry, we also experience changes with each new season. Naturally, many of our clients are curious about the current state of the Boise housing market.

On the surface, not much has changed for Boise real estate. Even with rising interest rates and inflation, the housing market remains hot. Here are a few things we expect to see in the coming months:

Home Prices Will Increase

Prices are ultimately determined by the market. In Boise, we have seen buyer demand remain strong throughout 2022. Seemingly every transaction we have been a part of goes for well over the asking price. We have seen this in Boise, Eagle, Meridian, and throughout the Treasure Valley.

The low supply of housing inventory in Boise adds fuel to this fire. With limited options to choose from in the Boise area, homebuyers heavily outnumber the number of available homes. The buyer pool is competitive and continues to drive housing prices to historic highs.

The national data back up what we’re seeing here in the Boise area. As realtor.com explains in their most recent Housing Report:

“During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”

Mortgage Rates Will Rise

You may have noticed that mortgage rates are up. In the past six months, the 30-year fixed mortgage rate increased by more than a full point. It doesn’t look as if this trend will end anytime soon.

The Federal Reserve has signaled further increases in interest rates over the next year. If you’re a buyer looking to purchase a house in the near future, waiting will likely mean that you’ll pay a higher mortgage rate. Higher rates mean higher monthly payments.

For buyers, higher mortgage rates are no reason to panic. Historically, mortgages rates are around 6.5%. With the 30-year fixed mortgage rate hovering around 4.8%, we are still well below the historical rate. If you’re looking to buy, now is the time to lock in your rate while it’s still low.

Housing Inventory Will Increase

The number of homes for sale in Ada County increased slightly in March 2022. Nationally, we saw the same shift. The National Association of Realtors (NAR) just announced the months’ supply of inventory increased for the first time in eight months.

For buyers who have been frustrated by the low inventory in recent months, it looks like this spring might offer some relief. Even with more available houses, the competition from other buyers will be strong. You should be prepared to move quickly and be ready to make a strong offer.

For sellers considering listing their property, it is a good time to get top dollar before more houses hit the market. While we continue to see housing prices increase in the short term, no one has a crystal ball to predict where housing prices will be a year from now.

Our team at McFerrin Real Estate is happy to answer any questions you may have about the current real estate market. If you’re thinking about selling, find out here what your home is worth, or give us a call at 208.921.0334 today!