Well, the weather is heating up here in Boise, Idaho but what about the early summer Boise Housing Market?
So, I’m not going to focus much on the numbers today, just a quick run-down, because I’d rather talk a bit about what’s happening in the market, but in May of 2023, the overall Median sales price for Ada County was $534,900. Now that is an 11.2% drop from May of last year, but it is just over a 3% increase from April of this year. And it’s important to realize what this data means; it doesn’t mean that all home values across every price point dropped 11.2% from last year. What it means is that the bulk of homes selling are those in the median price range, those from the $350k-$500k price – more homes are selling in that price point this year than last year, when there were more homes selling that were above that price point.
And that is a direct response to the rising interest rates, which lowers purchasing power, so we just don’t have as many people who are getting financing right now that can afford the higher priced homes.
Another number to go over from May of 2023 in the number of homes for sale, the inventory. That number was 1250 homes, which was a 17.2% reduction compared to the inventory of homes for sale in May of last year. And this low inventory is exactly why the home prices are still staying high. The demand is lower than the past few years, but the inventory is still lower than demand. In many of the sub-markets, but not all, which I’ll explain in a minute.
Now that was in May, and in June we have had some more inventory come on the market, so it will be interesting to see what the June data says in regard to if that inventory is moving or sitting longer. In June we also saw interest rates jump up to 7%, come down a tad, and as of today, are back to that 7% range. That 7% rate also affects what happens in our market, so let’s talk about the things that are beginning to really take shape so far this summer.
Okay, as I’ve said in the past few market update videos, we really have two different submarkets going on at the same time that are in direct opposition to each other. One is where we still have homes selling for over asking and with multiple offers, and the other are the homes that are sitting there, with very little showings, having price reductions, and taking much longer to sell. And it’s making me wonder if there could be an unusual phenomenon coming in the next several months, if interest rates stay at 7% or go up a bit, where we have one sector of the market moving along swiftly and another sector go completely stagnant, and possibly begin to decline. There is also that 3rd sector that I’ll talk about as well, that is more stable and consistent, and should continue to be so.
So, the fast selling, multiple offer market is really made up of 2 categories, those homes that are priced under $500k, and those homes that are priced about $500k-$1mil AND this is key, are single story homes. Single story homes are always in more demand than 2 story, but the single-story homes are the king of our housing market right now. So, there are a decent number of homes coming on the market that are single story and under $500k, but that is such a high demand sector, that they sell very quickly to first time home buyers, investors, and retirees alike. That is still a highly competitive market and I expect it will continue to be so. It has proven to keep moving swiftly along, even with rising rates.
The second high demand sector are those single-story homes that are higher end, in the $500k-$1mil range, and those homes are highly sought after by retirees. Most of these buyers are paying cash, and one reason there can be tight competition on these homes is that the inventory for this type of single-story home is very low. Especially when it comes to those that appeal most to the retirees, homes that are completely updated, move in ready, offer a beautiful yard, maybe a view, in certain locations…and so due to most of these buyers paying cash and the inventory always being lower on these homes, I also expect this sector of the market to keep moving along at a good pace and holding its value.
The steady sector of the Boise Housing Market are those luxury homes, $1-1.5million, and they are taking much longer to sell than they did in the last couple of years, but they are still selling, sometimes with price drops, sometimes in a day with multiple offers depending on all the amenities and location and realistic pricing, but they aren’t sitting with crickets waiting for showings – and of course if they are single story or the primary bedroom is on the main floor, then that will help them move faster.
The sector of the Boise housing market that is above $1.5 million is moving back more into a pre-pandemic pace where they will still sell, but demand is lower and so they will just take longer to sell. They are not seeing huge price drops though, just more days on market.
And then the unfortunate bottom of the barrel sector of our housing market, the one I worry may go stagnant, especially if interest rates go up anymore, is what I would call our “family move-up homes”, homes in the $550k-$850k price point and homes with the primary bedroom upstairs. These are homes traditionally bought as the next step up for a growing family. So why are these homes not selling right now? Why does no one want them? Well, people do want them, I’m sure there are many families that want them very much, but they just can’t afford them with the current rates or, families that are still in their first homes that want to move up could maybe afford them, but are not about to give up a 2.5 or 3% rate that they have on their current house to get a 7% rate unless they are really, really motivated to do so.
So, if you are looking for a house in the Boise area and you want a better deal on a house, take a look at the homes with the primary bedroom upstairs. Chances are, it’s been on the market awhile and you can get a better price without the competition the single-story homes are having. But the silver lining right now is that these 2 story homes with the primary upstairs are still selling, they aren’t sitting on the market like 200 days or anything like that, they are still selling in about 45 days on average…so for now, they just have less demand than the other market sectors, but… that interest rate… If it keeps creeping up, then it will really affect this subsector of the Boise housing market more.
I won’t talk about it on this video because my may numbers are a bit outdated now that it’s almost July, but if you go to my website blog posts, under market updates, every month I post the monthly market data for each city in the Treasure Valley. You can also find that data on my Facebook page or Instagram. So, I will be posting those numbers early next week for the month of June. Those are month over month numbers, so there are often larger variations in data than year over year, but it is interesting, well to me at least, to see how each city’s housing market is doing.
And of course, we are happy to set up a phone call if you are thinking of buying or selling in the beautiful Boise, Idaho area, and I will continue to keep you updated on the Boise housing market as always…. I hope you are making time to enjoy the sunny weather, and I’ll see you next time!
Helpful Boise, Idaho links for you!!!!
LINK TO GET OUR MONTHLY NEWSLETTER: https://summerastonrealestate.com/newsletter/
LINK TO GET BOISE MAP TOUR VIDEO: https://youtu.be/K-xWSra013U
LINK TO GET BOISE RELOCATION GUIDE: https://summerastonrealestate.com/relocation-guide/
LINK FOR EAGLE IDAHO AREA COMMUNITY GUIDE: https://summerastonrealestate.com/eagle-area-comparison-guide/
The Summer Aston Real Estate Group is happy to help you buy or sell a home in the Boise Idaho area (also called the Treasure Valley).
If you want to see more videos all about living in Boise and moving to Boise, the best way to support the channel is to 👍 , SUBSCRIBE and COMMENT – we appreciate it so much! ❤
New videos every week (or as best as we can:) https://www.youtube.com/channel/UC5JO…
Pros and Cons of Living in Boise Idaho: https://youtu.be/U2kOhTZUvRQ
Buying New Construction Property in Boise Idaho: https://youtu.be/jq6TUD5TNfA
What’s the weather like in Boise Idaho: https://youtu.be/4eyPmZtgb-w
How to Prepare to Buy a Home: https://www.youtube.com/watch?v=15Vrv…
How to Sell your House Fast: https://www.youtube.com/watch?v=TmDjN…
F A C E B O O K ➳https://www.facebook.com/summerastonre/
