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The Boise, Idaho real estate market has had some major ups and downs over the past few years. And now, a lot of local homeowners and home buyers are wondering the same thing:
What will the Boise housing market through 2024 be like? And what should we expect in 2025, in terms of real estate conditions and trends?
Here’s the short version:
After a few tumultuous years, the Boise-Nampa real estate scene has settled into a new normal marked by limited inventory and gradual home price growth. These conditions will likely continue through the end of 2024 and into 2025.
From a home buying perspective, there’s no single metric that tells you everything you need to know about a particular real estate market. A better approach is to zoom out and look at a variety of indicators, for a more holistic view of the market.
So let’s do that for the Boise-Nampa metro area:
As of summer 2024, the Boise metro area had about a two-month supply of homes for sale. That was slightly below the national average during that same timeframe.
Boise inventory levels have improved from the record-low levels seen during the pandemic years. But it’s still less than ideal from a home buyer’s perspective.
Some analysts believe that more properties will come onto the market later this year, especially if mortgage rates come down. According to Zillow economist Skylar Olsen:
“The effects of ‘rate lock,’ owners holding on to their existing homes and low-rate mortgages, appear to be lessening over time…”
Some inventory growth could make the Boise housing market more buyer-friendly during the latter part of 2024 and into 2025. In the meantime, buyers will have to be patient but persistent when house hunting. Those are two important qualities in a competitive market like Boise.
This metro area experienced a surge in house prices over the past few years. The median home values in the city of Boise rose from $326,000 in early 2020, to an all-time record high of $524,000 by the summer of 2022.
That was an increase of nearly $200,000 in just two and a half years.
But shortly after that surge in prices, the Boise-area real estate market went through a cooling phase that lasted for nearly a year. The median home value declined, eventually found a bottom, and then began to creep upward again.
Nampa and Meridian (Boise’s neighbors to the west) have experienced a similar pattern, though prices vary among the three cities.
Here are the median home values as of summer 2024, according to Zillow. The percentage in parentheses shows how the median price changed over the previous 12 months:
Given the current supply-and-demand situation within the Boise real estate market, it seems likely that Boise home prices in 2024 will continue to inch upward, and we may see the same into 2025.
When this article was published, only about 18% of homes in the Boise metro area were selling above the original list price.
This is perhaps the most revealing trend related to the Boise real estate market. Among other things, it shows that home buyers have more leverage these days compared to those who purchased during the past few years.
Some of the hottest markets across the U.S. (like Boston and San Jose) have a much higher percentage of homes selling above the list price in 2024. In those areas, buyers often find themselves in competitive multiple-offer scenarios that drive up the final sale price.
But there’s not as much of that in the Boise-area real estate market, which has cooled down over the past two years.
Mortgage rates continue to be somewhat elevated. According to Freddie Mac, the rates are as currently as follows (as of summer 2024):
Experts with Freddie Mac, Fannie Mae, and the Mortgage Bankers Association (MBA) expect mortgage rates to remain somewhere just under 7.0% until the end of 2024. More central bank rate cuts could be on the way over the coming months, which could have an impact on mortgage rates. That said, there seems to be agreement among experts that rates likely will remain in the high 6.0% range, though it’s hard to see rates go below the 6.25% mark.
The Boise metro area real estate market has experienced some extreme conditions over the past five years. Boise home price growth was unprecedented, with prices skyrocketing very quickly over a short period.
But today, this formerly red-hot housing market has settled back into a more sustainable pace.
Despite the cooling trend mentioned earlier, there is still a relative shortage of homes on the market compared to the demand from local buyers. And that’s putting upward pressure on prices.
Some forecasters predict that home prices in the Boise area will level off through the rest of this year and into 2025. Researchers from Zillow, for example, recently forecasted that the median home value for this market would remain flat between now and May 2025.
This should provide some relief to price-weary home buyers in the Boise housing market in 2025, while giving wages a chance to catch up with house values.
We’ve covered a lot of important housing trends in this Boise housing market forecast. But what does it all mean for home buyers in Boise, Idaho? What can local buyers expect over the coming months?
For one thing, home buyers might feel less urgency when it comes to the overall sales pace within the market. Houses aren’t selling as quickly as they were two or three years ago, and intense bidding wars have become a rarity.
But that doesn’t mean Boise-area home buyers can be complacent or lackadaisical when house hunting. The lingering inventory shortage will continue to challenge some house hunters, particularly those at the lower end of the price spectrum (where there’s more competition).
If you’re considering a home purchase in Boise, Idaho in 2024 or 2025, you’ll want to set yourself up for success. The best way to do that is to partner with a team of mortgage experts who understand the local real estate market. At Sammamish Mortgage, we can help you get pre-approved for a mortgage, Get rate quotes on home loans in Boise, and get you started on the right path to homeownership.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.