After the median sales price for homes in Ada County hit a record high of $359,900 in November 2019, the Boise housing market prices experienced an expected dip in December to $350,000. If we account for all the months of 2019, the median sales price for the year was $345,000, which is an overall yearly increase for 2019 of 9.9%.
These statistics are in line with the nearly five year market trend of home price increases, fueled by low supply of lower-priced homes in comparison with demand, more newly constructed homes selling at higher prices, and increased purchase power from low mortgage interest rates The rate for a 30-year fixed mortgage currently sits at 3.6% and is anticipated by economists to stay below 4.0% throughout 2020!
With no signs of slowdown in the number of people moving to our area, we can expect our “low supply-high demand” situation will continue to push prices up. In fact, REALTOR.com predicted Boise will be the top market in the country for projected home price increases in 2020 due to job and population growth. This news can be exciting for many who already own homes or investments here and are experiencing a strong growth in equity. But, for those who don’t currently own and many who are making Idaho wages that aren’t keeping up with the cost of living, this can be a scary prospect.
As stated by Boise Regional Realtors, “to bring our market back into balance, the Treasure Valley needs more inventory, particularly priced at or below $300,000, both in new construction and existing homes being listed for sale. That doesn’t mean more rooftops anywhere and everywhere, but comprehensive, regional planned growth, that offers adequate purchase and rental options in all price points — not only to stabilize the market but to preserve and improve the quality of life for all residents.”
If you are considering buying or selling in 2020 and have questions about what that might look like in the current market, please reach out to us! We always welcome the opportunity to sit with you and talk more about specific housing needs and how we can walk alongside you to help meet them!
For a quick snapshot of the Boise housing market for December 2019, see Boise Regional REALTORS® market summary graphic for Ada County below: