Boise Area Home Prices Drop Over 10% Compared To Last Year

According to a new report, Boise home prices have dropped over ten percent from last year. Home buying and selling in Idaho resembled a contact sport during the pandemic and historically low-interest rates. The Boise area was the topic of several national television news shows and national publications.

The run of escalating home prices ended when the Biden Administration began raising interest rates to combat the rapid record inflation brought about by their economic policies. Despite several cities experiencing declining home values, the Boise market continues to hang tough, reports the Boise Regional Realtors.

Last month, Ada County's median home price was just under $500,000 at $492,115. The price drop was down 10.5% from last year. A troubling trend is that the fall was the fourth consecutive month of annual decline in home prices. On a good note, the price of a home in February was up $5,000 for the price of a home in January.

In February, the median sales price of homes that sold in Ada County was $492,115 — down 10.5% compared to February 2022 and the fourth consecutive month of annual decline in price. However, this slightly increased by approximately $5,000 from last month's median sales price.

Less than half of the homes sold in February, 40%, were new homes. The news is good news for many builders and developers who desperately need their new construction homes to be sold.

"Prices are still adjusting to mortgage rates and buyer demand, but this month-over-month uptick in prices may indicate that we're reaching a new normal with prices," explained Debbi Myers, 2023 President of Boise Regional REALTORS®. "Mortgage rates and supply versus demand will be the ultimate determining factors on where prices go, but we'll keep watching to see if prices continue to level out."

Over six hundred homes were sold in Ada County last month, while the average home stayed on the market for seventy-eight days until sold. Remember when homes were on the market for hours instead of days?

We'll continue to monitor this situation as it develops.