This past month, the Boise housing market saw a 7% increase in the median home price, going from $483,450 in March to $517,500 in April. This is the biggest monthly price increase we’ve seen since May 2021. It is common for prices to begin to increase as we move into the spring and summer months. However, as BRR put it, “This month’s uptick is uncharacteristically hefty for the season.”
The jury is still out as to whether this jump was an anomaly or the beginning of a new wave of price increases. We are certainly in a unique market, and it’s difficult to tell which way things will go. “Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said Lawrence Yun, chief economist at NAR. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand.”
Though we can’t speak to the experience of all agents in the valley, our brokerage has definitely seen the effects of limited inventory in the “under $500,000” range resulting in very competitive situations for buyers and rapid upward pressure on prices. Given the higher interest rates and how they affect monthly payments, it is likely this price range is the max that many buyers in our area, especially first-time home buyers, can afford. This means that, until enough homes are listed in this range to better satisfy growing demand, buyers will need to be prepared to act quickly and offer attractively to get into a home.
This short synopsis provides a broad overview of the real estate market in our area. However, if you are considering buying or selling at some point this year, we would love the opportunity to give you a more comprehensive view of how the conditions of the current market and possibilities for the future may affect your personal real estate decisions. We hope you will reach out!
For a quick snapshot of the Boise housing market for April 2023, see Boise Regional REALTORS® housing market summary for Ada County below:
See more monthly Boise housing market updates HERE!