Mortgage Rates Hit 3-Year Lows; Will Lower Rates Shift Boise's Real Estate Market? Despite rising inventory and months of elevated borrowing costs, Ada County home prices climbed 4.1 in September. Now, with mortgage rates at their lowest level since 2021, will it be enough to influence Boise’s real estate market?


In September, the median sold price in Ada County was $558,522, up nearly 4.1 from a year ago. In Canyon County, prices rose to $429,958, a 5 increase compared to last year. Historically, in a balanced real estate market, the long-term average for home price appreciation of 3-4 is often viewed as a benchmark for normal appreciation.


Inventory levels in both Ada and Canyon counties have held relatively steady over the past few months, sitting at 2.96 months of supply in September. Fall typically marks the seasonal peak for listings, with available homes often topping out before the holiday slowdown.


Closed sales also trended higher. Ada County recorded 830 home sales in September, 100 more than last year. In Canyon County, 438 homes sold, up from 409 a year ago. Even with higher borrowing costs, buyer demand is keeping pace with rising supply. Homes spent an average of 26 days on the market in Ada County and 36 in Canyon. Days on Market reflects how quickly homes are selling after being listed. It helps gauge the overall pace of the market and indicates that buyers are still acting when the right opportunity comes along.


Until now, elevated mortgage rates and a steady rise in supply have created a more even playing field for buyers, especially with builder incentives and seller concessions still in play. For those able to navigate the higher-rate environment, it's been a window of opportunity. After hovering in the high 6s and low 7s for much of the summer, mortgage rates have dropped into the mid 6s- which are some of the lowest levels we’ve seen in a few years. The move comes on the heels of a sluggish jobs report and broader signals of an economic cooling- factors that often trigger rate declines as investors shift to safer assets.


That drop has already stirred activity. According to Freddie Mac, mortgage purchase applications just saw their largest year-over-year increase in more than four years. But it remains to be seen how much of a boost, if any, it will bring to the broader market. While lower rates are a welcome shift, they're not a silver bullet. A softer rate environment may encourage some buyers to re-enter the market, but it doesn't guarantee a surge. Economic uncertainty can just as easily pull some buyers in as it pushes others to the sidelines.


If inventory continues to climb into fall, the impact of lower rates will largely hinge on buyer confidence and how quickly demand responds. Market shifts tend to unfold gradually, and so far, pricing and demand have held steady. The shift in rates is welcome to many, but it's not likely to rewrite the market overnight. For both buyers and sellers, today’s conditions provide a strategic window for those prepared to position themselves in a changing market.


By the Numbers: August 2025 Real Estate Market Overview





Median Price: What You Should Know


The median sale price provides a snapshot of home affordability in the market. It represents the midpoint of all home sales, giving buyers an idea of what they might expect to pay. A higher median price typically reflects a more expensive housing market.





Inventory Trends and What They Mean


The number of homes available for sale shows how much choice buyers have in the market. Changes in this number indicate whether inventory is growing or shrinking, which can affect competition and pricing for buyers.





What Days on Market Tell Us About Demand


The average number of days on market measures how long it takes for homes to sell. A lower number suggests a fast-moving market with high demand, while a higher number indicates homes are taking longer to sell, often reflecting lower buyer activity.


Boise Market Trends




Median list price: $562,500 (up 7.5)


Median sold price: $557,500 (up 8)


Average price per square foot: $320 (up 4.2)


Total home sales: 300 (up 24)


Median days on market: 18 (up 1)


Available homes for sale: 2.42 month supply (up 0.01)


30-year mortgage rate: 6.59 (up 0.09)




Treasure Valley Market Trends




Ada County: $558,522 (up 4.1)


Eagle: $800,000 (down 1.3)


Garden City: $550,000 (*fewer than ten sales)


Kuna: $435,558 (down 1.5)


Meridian: $547,248 (up 3.3)


Star: $592,995 (up 1.5)


Canyon County: $429,958 (up 4.8)


Caldwell: $408,949 (up 6.2)


Middleton: $531,712 (up 3.3)


Nampa: $419,990 (up 2.5)







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Select information in this We Know Boise market report was obtained from the Intermountain MLS (IMLS) on September 9th, 2025. While the data is deemed reliable, it is not guaranteed. City-specific data refers to single-family homes on less than one acre, whereas county-level data includes homesites of all sizes. The "months of supply" metric is based on a 12-month rolling average. Home prices mentioned combine both existing and new construction properties. Comparisons are based on year-over-year changes unless otherwise specified.
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