From our standpoint as agents, the Boise housing market has been incredibly slow in comparison to the chaos of the last three years. In fact, when we look at the number of homes sold this past summer (June, July, and August), it’s the slowest we’ve seen since 2012. Higher interest rates, relative to the historically low rates of the past 10 years, are a major contributing factor to the slowdown. At the close of the 1st week of September, the mortgage rates for a 30-year, fixed-rate loan were 7.12%. This has created mortgage payments that put home affordability out of reach for many and has caused several to push pause on their home search. With fewer people buying due to high interest rates and low affordability, inventory levels are inching upward, and there has been some downward movement in prices. Last month, the median sales price for our area dipped to $520,000. As indicated by a slight increase in sales last month, this price decline seems to be helping some buyers pull the trigger.
One thing we know for sure will make many more pull the trigger is any downward movement in interest rates. Our lender contacts have said they have a pipeline of qualified buyers just waiting for rates to drop. And, if lower interest rates cause them all to jump back in at once, we could have a feeding frenzy of competition for the limited homes available, causing prices to rise again rapidly. For this reason, we have been encouraging buyers to consider purchasing before that frenzy occurs. If you are purchasing with cash, now is a great time to get a good deal on a home, especially given that current interest rates don’t affect you. If you are getting a loan, it may be worth buying now--with lower prices and more opportunity to negotiate—and then refinancing if/when rates go down in the future.
Of course, each buying or selling situation is unique. So, if you’re trying to decide how and when would be best to move forward, we would love to meet, hear about your situation, and help give you the information you need to decide whether jumping in or hanging back is the best option for you right now.
For a quick snapshot of the Boise housing market for August 2023, see Boise Regional REALTORS® housing market summary for Ada County below:
See more monthly Boise housing market updates HERE!