Boise's Spring Real Estate Market

Boise's Real Estate Market: Current Trends, Interest Rates, and Future Outlook

Boise's real estate market has seen its share of ups and downs recently. Interest rates have taken another significant hit, and many are wondering how this is actually affecting our local market. Let’s dive into the details and explore what’s happening.

Market Trends and Inventory Levels

Last month, inventory levels were surprisingly low. In Boise, there were only 230 single-family homes on the market, and in all of Ada County, there were just 1085 homes available. This has been a major driver of the market here for some time, but last month’s numbers were the lowest we've seen in a while. The low inventory has created a lot of competition, driving prices up. The slight improvement in interest rates coming into spring didn’t slow down the momentum of buyers, even though rates have since spiked back up.

Recent Changes in Inventory

This month, we've seen inventory increase by about 200 homes in Ada County, which is typical in the spring as people consider moving or selling when the weather improves and the school year ends. However, the increase is still lower than what buyers would want, especially in Boise and popular spots like The North End. Despite the numbers showing an increase, it hasn’t made a noticeable difference for our buyers. There are still limited options in many price ranges and areas, particularly in popular locations with limited space for new construction.

Impact of Interest Rates

Canyon County hasn’t been affected as much in terms of inventory and competition, which is always typical. However, the real story lies in the recent changes in interest rates. We've just seen the biggest jump in a while, with rates up to about 7.5%, the highest since last year. This is due to the recent CPI rating, indicating that inflation isn’t as low as expected, and the Fed’s hints at fewer interest rate cuts. This has caused a rate hike, making buying more expensive and pushing some first-time homebuyers out of the market.

Market Resilience Despite Rate Hikes

Interestingly, despite these high rates, the Boise market hasn't slowed down as much as one might expect. Many buyers remain committed and are actively shopping, hoping to counteract the recent rate increase with builder or seller concessions. As we move into summer, the market is expected to get busier, with prices likely to rise. Homes are already staying on the market for less time, dropping from an average of 49 days in March to 35 days in April.

Future Predictions and Advice for Buyers and Sellers

Looking ahead, it appears that interest rates will level off, with little immediate effect on Boise's market. The market is still factoring in potential rate cuts later this year and in 2025. Even with high rates last year, we saw significant home appreciation in places like Meridian. The continued interest from people relocating, locals buying their first homes, and investors means that even a small number of buyers can keep prices stable or even push them higher. Unless rates go another point higher, we expect prices to at least stay level or more likely increase through the rest of the year.

For both buyers and sellers, it might be smart to wait for interest rates to come down. However, as the busy summer season approaches, competition will naturally increase. If rates drop again, we could see a repeat of February’s multiple offer scenarios, making buying tougher. Currently, we are in one of the most balanced markets we've seen in years, which is great for both buyers and sellers. Over the next several months to years, this balance is expected to shift back to a seller’s market, making buying more difficult. If you can buy now, it could turn into a significant advantage down the road.

Major Developments on the Horizon

Another huge factor to keep an eye on is the $18 billion plan coming to Boise, which will have a major impact on the market over the next few years. For more information, check out our latest video on this topic.

Thank you for reading! We look forward to meeting you and helping you navigate the Boise real estate market. Don’t forget to subscribe to our channel for weekly updates and valuable information. If you have any questions, feel free to call or text us anytime.


Boise's Spring Real Estate Market

Post a Comment