The Boise housing market saw another new record this month with the median sales price reaching $595,000. This is a 23.9% increase from last year. The biggest price increases were found in the new construction segment where the median sales price has jumped 36.7% from last year to $645,000. In the existing/resale segment, the median price was $570,000, which is a gain of 16.9% over last year. The median sales price in both these segments set new record highs.
Mortgage interest rates increased last month as well, with the average 30-year fixed-rate mortgage reaching 5.1% at the close of April. Because most of the homes that sold last month went into contract in February or March, before the interest rate hikes, it’s hard to say exactly how increased mortgage costs will affect prices. This will become more evident over the next two months.
Recently, I have heard a few people comment that they believe we are headed for a market correction, and they expect housing prices to go down. I’m not so sure. While I do believe higher interest rates will decrease buyer pressure on the market and cause the rate of appreciation to return to more normal levels, the demand for housing in our area remains strong and inventory is still relatively tight. Both of these factors, I believe, will continue to keep home prices on an upward trajectory in the coming years. The latest home price forecasts indicate that housing experts believe the same. You can see their various price appreciation projections for the coming year HERE.
No matter where the market is headed, we know that decisions about buying, selling, or investing in real estate will remain important to many and that each person’s situation is unique. If you have questions about how current market trends may impact you, we’d love to hear them and to help you make decisions about when and how it might be best to move forward given the factors that affect you most.
For a quick snapshot of the Boise housing market for April 2022, see Boise Regional REALTORS® housing market summary for Ada County below:
See more monthly Boise housing market updates HERE!