Resale homes in the Boise housing market saw the first positive boost in median sales price since August of 2022, jumping 6% from the same time last year. New construction prices, however, have seen a significant decline, dropping 15.8% over the same period. A recent article from BoiseDev gives more insight into this, but the drop is largely due to builders having to slash prices to make new construction more enticing and affordable given currently high mortgage interest rates.
Home sales were down 17.6% this month from the same month last year. This is not an indicator of fewer people being interested in buying in the Boise area but rather a result of high interest rates and still high prices making homes less affordable for those interested.
If you find yourself in the category above and are hoping time will bring lower prices and lower interest rates that will make homes more affordable, I’m not so sure that will happen. As mentioned in previous market reports, a move up or down in interest rates will likely only increase the cost of homes. A move up in rates, obviously, increases the payment. But, a move down in rates is likely to cause pent-up buyers to make a run on the limited inventory (down 35.4% from last year), which will create hefty competition and drive housing prices up quickly.
The best time to buy or sell real estate is unique to each person and depends greatly on one's needs, desires, and current situation. If you’re curious to explore whether now is the right time for you to buy or sell, please give us a call. We’d love to help you navigate the best way forward.
For a quick snapshot of the Boise housing market for September 2023, see below:
For more market statistics, including those for Canyon, Elmore, & Gem Counties, check out Boise Regional REALTORS® Market Report HERE.