IDAHO - To buy a home in the Boise area, you should learn about the housing market trends for the next several years. This information will help you decide when to buy or sell. The housing market in Boise is hot right now due to a lack of housing supply, especially for single-family homes. This lack of inventory has driven up prices for years, and the trend is that there will be fewer homes for sale each year.
While the median price of homes for sale in Boise is historically high, interest rates remain low. If you're considering buying a property in the future, your best bet is to build a rental portfolio, which will offset higher prices. In addition, you may want to consider the Ada County area south of Boise, which is experiencing a hot real estate market.
The median sales price in June 2022 was $453,086. This represents an increase of 31.9% compared to June 2021. A shortage of inventory has driven up the median sales price compared to the demand for homes, but inventory levels have increased over the past year. Meanwhile, the number of closed-house sales decreased by 37.5%. There were 30 closed sales in June 2022, with 24 resale homes and six newly constructed homes. There were 52 pending sales in July 2022, which decreased by 33.3% from July 2021.
According to Oxford Economics, the housing market in Boise is the second most expensive in the country. The median home price in Boise is seventy-two percent more than the median income in the area. However, the housing market in Boise is insulated from rising rates, which should keep the market active.
In the past decade, home values in Boise have increased steadily. A ten-year average increase of 11.1% occurred last year due to supply and demand trends. While there are still several obstacles to overcome, the growth in home prices in Boise is expected to continue. The local economy still largely depends on the lumber and food processing industries. Still, it is also quietly becoming a technological hub with the arrival of Micron Technology and several other high-tech firms. Those factors will help keep prices high for the next decade and beyond.
While affordability remains a concern, several reports suggest that prospective buyers are gaining some leverage. The report reveals that in August 2023, only nine of the 100 largest housing markets are expected to experience price declines. Those in the Midwest are unlikely to see price decreases, while markets in the West are expected to grow steadily.
One of the most promising trends in the Boise housing market is its ability to keep up with the influx of people looking to buy a home. During the pandemic, work-from-home trends gained more traction, making the city a popular destination for many. With a strong economy, affordable housing, and outdoor recreation, many people chose Boise as a new home.