Perfect Storm Brewing in Boise Housing Market New Report Reveals
Could the once unbeatable and overvalued Boise housing market finally be coming to an end? A new report just out says that median home prices in Ada County dropped for the first time in years.
The Boise market's rise in value has made Idaho famous due to the meteoric rise in home values. The market was ranked as the most overvalued market in the country for the last two years.
The Boise Area Regional Realtors issued a report detailing the first drop in the value of area homes in several years. 'After passing the $600,000 mark in May 2022, the median sales price for homes in Ada County dropped to $592,090 in June. This was 12.8% higher compared to the same month a year ago. Since 2005, the average year-over-year percent change in home prices in Ada County has been 8.1%.'
As you can see from the graphic above, the Boise market is adjusting to the changing dynamics of the economy. Home prices were up from last year but down from the previous month. Last year, we saw a historic home-buying frenzy. Some homes were on the market for hours and not days. This year homes are staying on the market for an average of fifteen days. Inventory is up almost 200% from last year, which is good news for home buyers.
What about new construction in Ada County?
The sale prices of new construction rose 24% from last year. However, recent home sales were down almost 5% compared to the previous year totaling only 239 homes. New home inventory rose nearly 220% percent from last year. More recent construction homes are staying on the market longer at 19 days, up 72% from 2021.
Existing Homes Sales in Ada County Slow
Idaho buyers have seen unprecedented gains in equity during the last few years. Median home prices in Ada County rose over 11% compared to June 2021. Home sales were down by almost 20% at 579 homes sold. The good news for buyers is that homes are still selling by only staying on the market for 14 days; however, that's up 40% from 2021. If you're looking for an existing home to buy, you'll have more homes to choose from as inventory was almost 180% to 1,355 available homes.
Last year's selling season was akin to an undefeated season in the NFL; it is rare and happens rarely. The 2022 real estate summer season seems more like a return to normal if there is a normal in the Boise/Idaho market. The advantage seems to be moving to buyers instead of the seller's market we've experienced in the last several years. The only challenge for buyers is interest rates are double what they were last year.