Treasure Valley Home Prices Climb Amid Robust Demand, But Rising Rates Loom Robust demand and scarce supply have driven up home prices in the Treasure Valley this spring. However, rising mortgage rates threaten to dampen the enthusiasm.


May is typically one of the busiest months in the housing market, as families with school-aged children aim to relocate before the new school year begins.


The median price of a single-family home in Ada County rose by 7.5 year-over-year to $556,500 in April, up slightly from March. Boise home prices climbed to $525,000, a 5 increase compared to the previous year. In Canyon County, prices ended the month at $429,995, up 10.3 from April 2023, the highest since October 2022.


As prices have risen this year, bidding wars have become less frequent. However, fairly priced, move-in-ready homes continued to sell quickly in April. In Ada County, the typical home spent just 14 days on the market before receiving an offer, down from 21 days in 2023. In Boise, homes sold in a brisk six days, while in Canyon County, days on market remained steady at 24.


Despite interest rates nearing multi-decade highs, home prices have remained remarkably resilient. According to the Milken Institute, wages in Boise jumped by 62 from 2017 to 2022, making it the fourth fastest-growing major metropolitan area.


The Community Planning Association of Southwest Idaho estimates that the Treasure Valley's population has increased by nearly 100,000 residents since 2020. This influx, coupled with rising wages, has strengthened the demand for homes in recent years, while the supply has remained frustratingly low.


Many homeowners are locked into low mortgage rates, while many others, particularly Baby Boomers, are choosing to stay in their homes longer, reducing the number of resale properties available. This low inventory cycle perpetuates itself, as sellers hesitate to list their homes when unsure where to move next.


Despite a solid start to the year, recent weeks have seen signs of softening demand as supply has ticked higher and mortgage rates have moved back above 7.


After a brief dip at the start of the year, rates have steadily climbed, with 30-year mortgages ending the week of May 9 at 7.09. Homes typically go under contract one to two months before the sale closes, meaning April's sales data reflects purchase decisions made when rates were lower than now.


Thanks to a 31 increase in the number of homes for sale, the Treasure Valley began May with a 2.37-month supply, up from 1.67 months last year. Partially due to the lack of resale homes and partially due to slowing demand, new construction now comprises nearly half of all available listings—a record amount.


Rising rates directly affect affordability, and they also have a psychological impact, causing some potential buyers to pause and reassess their plans. Mortgage applications hit a 28-year low last October when rates approached 8.


We are now halfway through the important spring home-buying season, which runs from March until June. While seasonality isn't as pronounced as it once was, sales still typically peak during these months.


It's still too soon to gauge the full effects of rising rates. Much will depend on how high they climb and when they start to decline. However, buyers are beginning to push back against rising home costs.


A slowdown in buyer traffic has left some builders with excess inventory. In response, even some mid- and high-end builders have begun offering purchase incentives again, such as interest rate buy-downs.


Although sales have improved compared to last year, demand is still historically low. Even a slight dip could cause appreciation to stall, especially since supply is higher than last year and has yet to peak.


In 2023, May was the best month to list a home for sale, while in 2002, it was March, both coinciding with mortgage rates near yearly lows.


The market still favors sellers; however, it's worth noting that April's data is backward-looking and reflects first-quarter conditions. As of early May, supply appears to be ramping up just as demand is tapering off, giving buyers more negotiating power.


If you're considering selling your home this year, remember that the spring selling season is already in full swing. The best advice is to set a price the market would find competitive. That doesn't mean "giving it away," but it also doesn't mean shooting for the stars. The goal is to capitalize on current demand while it's still strong.





Boise Real Estate Market Summary for April 2024




Median list price: $525,000, up $25,000 (5)


Median sold price: $525,000, up $25,000 (5)


Average price per square foot: $314 (4.7)


Total home sales: 261 (up 34)


Median days on market: 6 days (down 4)


Available homes for sale: 1.56 month supply (up 0.4)


30-year mortgage rate: 6.99 (up 0.65)




Treasure Valley Housing Market by Area




Ada County: $556,500, up $39,000 (7.5)


Eagle: $669,900, down $180,100 (-21.2)


Garden City: $622,290, down $15,710 (-2.5)


Kuna: $449,990, up $33,490 (8)


Meridian: $544,990, up $45,045 (9)


Star: $562,925, down $120,395 (-17.6)


Canyon County: $429,995, up $40,005 (10.3)


Caldwell: $394,900, up $34,905 (9.7)


Middleton: $454,990, up $10,540 (2.4)


Nampa: $423,695, up $33,695 (8.6)







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Select information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on May 8th, 2024, and is deemed reliable but not guaranteed. City data refers to single-family homes on less than one acre, while county data includes homesites of all sizes. Months of supply is calculated on a 12-month rolling average. Combining existing homes for sale with new construction is the best way to gauge current home prices and Boise housing market trends. New house prices can be more volatile and can make comparisons, particularly on a month-to-month basis, less reliable.
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Boise Home Prices Reach Two-Year High as Market Gains Speed Ada County home prices are surging as rising competition for scarce listings sends buyers scrambling. With robust demand and historically low inventory, 2024 is already turning out to be a good year for home sellers.


The median home price in Ada County at the end of March was $555,000, up 15.2 from the previous year. This increase represents the largest yearly gain since May 2022, the same month the county hit a record.


Home prices in Boise also experienced double-digit growth, jumping 13.4 to $529,990, the highest price since June 2022. In Canyon County, prices rose by 4.7 from a year ago to $413,395.


Demand from buyers less sensitive to interest rates, combined with a limited supply of homes on the market, is driving above-average growth in home prices this spring.


Although the number of available homes for sale has gradually increased, it remains at levels typically seen in extreme seller's markets. As a result, buyers are finding fewer options than they had hoped for and facing bidding wars for the most desirable properties.


30-year mortgage rates fell to 6.82 last week, a nearly 1 drop from last October's multidecade high. After a dip last fall, interest from buyers came roaring back at the end of December as mortgage rates eased.


In April, the Treasure Valley had enough houses for sale to last just over two months. An inventory level this low typically leads to solid price increases, usually in the mid to high single digits.


The availability of existing homes is particularly low. Many homeowners with mortgage rates much lower than current levels are understandably hesitant to give up their low-cost loans, a reluctance often referred to as the "lock-in" effect.


Additionally, the average time people stay in their homes before moving has almost doubled in the last two decades. This trend is largely driven by older homeowners who prefer to age in place. When combined with the widespread relocation that occurred during the pandemic, it's clear that many current homeowners feel no need or desire to move again.


Despite the elevated demand and low supply of homes, home builders in the Treasure Valley have struggled to keep pace with new construction. In addition to the scarcity of building lots, a shortage of construction workers has led to soaring wages in the industry.


Our area has been dealing with a labor shortage for years, which some predict is about to get worse. This shortage could further slow the construction of new homes and potentially drive up prices for those that are built.


Wayne Hammon, CEO of Idaho Associated General Contractors, estimates that construction industry wages grew 15–20 in 2023 and are expected to spike an additional 20–25 in 2024.


It should come as no surprise that properties priced right are selling quickly. In March, homes in the Treasure Valley were selling notably faster than in the previous year. The typical home was on the market for just 31 days—about four times faster than what is usually seen in a balanced market.


Buyers are flocking to updated homes with nearby amenities, but only if they are priced competitively. Rising home prices and elevated mortgage rates have sent monthly mortgage payments to near-record highs, stretching budgets and making buyers particularly sensitive to overpaying.


As a result, they would rather put an offer on a reasonably priced home with another offer on it than on a property they feel is clearly overpriced.


Last March marked a low point in local home prices, making year-over-year comparisons relatively easy, so the pace of price increases will slow going forward. However, barring a sharp rise in unemployment or a substantial increase in the supply of homes, prices will likely continue heading higher.





Boise Real Estate Market Summary for March 2024




Median list price: $530,000, up $55,000 (11.6)


Median sold price: $529,990, up $62,495 (13.4)


Average price per square foot: $316 (12.5)


Total home sales: 223 (down 35)


Median days on market: 11 days (down 14)


Available homes for sale: 1.39 month supply (up 0.29)


30-year mortgage rate: 6.82 (up 0.28)




Treasure Valley Housing Market by Area




Ada County: $555,000, up $73,100 (15.2)


Eagle: $725,000, down $57,400 (-7.3)


Garden City: $417,500 (*fewer than ten sales)


Kuna: $457,000, up $72,000 (18.7)


Meridian: $534,990, up $77,745 (17)


Star: $567,497, down $32,503 (-5.4)


Canyon County: $413,395, up $18,395 (4.7)


Caldwell: $389,900, up $30,160 (8.4)


Middleton: $431,166, up $6,166 (1.5)


Nampa: $421,479, up $22,529 (5.6)







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Select information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on April 6th, 2024, and is deemed reliable but not guaranteed. City data refers to single-family homes on less than one acre, while county data includes homesites of all sizes. Months of supply is calculated on a 12-month rolling average. Combining existing homes for sale with new construction is the best way to gauge current home prices and Boise housing market trends. New house prices can be more volatile and can make comparisons, particularly on a month-to-month basis, less reliable.
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Ada County's Housing Market Gains Momentum as Home Prices Jump 6.3 In February, Ada County home price gains accelerated, primarily due to a scarcity of available properties.


Median home prices in Ada County jumped 6.3, reaching $522,000—the largest yearly gain since August 2022. In neighboring Canyon County, prices rose 5.1 to $409,818.


Despite decreased demand compared to the post-pandemic years, the Treasure Valley real estate market remains more competitive than in 2023. A December mortgage rate dip reignited buyer interest, contributing to rising prices last month.


Home prices in Boise fell by 1.2 to $478,200. However, this decline is primarily due to the mix of homes sold. On a per-square-foot basis, prices leaped 10.4.


Meridian stands out with particularly strong gains. Home prices surged by an impressive 15.8 compared to last February, reaching $549,000, the highest price recorded since the fall of 2022.


While prices rose, sales dipped last month due to low inventory and January's unusually snowy weather, which hindered property viewings.


Mortgage rates for 30-year loans ended the week of March 7 at 6.88, slightly higher than at the year's start but lower than the multidecade highs seen last fall.


Many homeowners enjoying interest rates well below current levels are hesitant to move and lose their favorable rates, contributing to a limited supply of existing homes.


In Ada County, move-in-ready homes priced under $500,000 face intense competition, often resulting in bidding wars. Houses priced between $500,000 and $1 million also show strong demand. The market becomes more balanced over $1 million.


With rising home prices and still-elevated mortgage rates, buyers are prioritizing quality. They're seeking updated, turnkey homes and avoiding properties with deferred maintenance or needing significant renovations.


Location is also important, with homes far from amenities or requiring long commutes seen as less attractive.


This spring's housing market is proving to be all about supply. Interest rates are low enough to keep a steady stream of buyers heading to the market. It's what they find when they get there that will matter.


Inventory remains below normal, with a 1.78-month supply in Ada County and 2.03 months in Canyon County, far from the 4–6 months indicating a balanced market.


Some sellers are receiving multiple offers immediately after listing their properties, while others are struggling to attract interest. What's making the difference? It all comes down to pricing.


Buyers are becoming more selective and cautious about not overpaying. When a home is overpriced, it makes correctly priced homes seem like better deals. This results in more interest and offers for those reasonably priced homes and fewer for the unreasonably priced ones.


There isn't a lack of buyers; we continue to see what you expect in a slight seller's market: realistically priced properties selling quickly. However, due to elevated interest rates, monthly mortgage payments are higher now than when home prices were at record highs, making buyers more cautious.


Even in a seller's market, overpriced homes struggle to find buyers, making pricing strategy crucial for sellers this spring.





Boise Real Estate Market Summary for February 2024




Median list price: $475,000, down $18,375 (-3.8)


Median sold price: $478,200, up $5,795 (-1.2)


Average price per square foot: $309 (10.4)


Total home sales: 192 (down 3


Median days on market: 16 days (down 29)


Available homes for sale: 1.17 month supply (up 0.04)


30-year mortgage rate: 6.78 (up 0.52)




Treasure Valley Housing Market by Area




Ada County: $522,000, up $30,943 (6.3)


Eagle: $765,000, down $64,900 (-7.8)


Garden City: $480,000 (*fewer than ten sales)


Kuna: $469,495, up $64,505 (15.9)


Meridian: $549,000, up $75,000 (15.8)


Star: $512,995, down $119,455 (-18.9)


Canyon County: $409,818, up $19,873 (5.1)


Caldwell: $382,400, up $36,905 (10.7)


Middleton: $427,400, down $134,755 (-24)


Nampa: $410,000, up $17,550 (4.4)







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Select information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on March 8th, 2024, and is deemed reliable but not guaranteed. City data refers to single-family homes on less than one acre, while county data includes homesites of all sizes. Months of supply is calculated on a 12-month rolling average. Combining existing homes for sale with new construction is the best way to gauge current home prices and Boise housing market trends. New house prices can be more volatile and can make comparisons, particularly on a month-to-month basis, less reliable.
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