Though we expect the Boise housing market will be one of the strongest in the country over the coming year, the COVID-19 pandemic and its related protocols have certainly slowed our typical spring market activity. With both buyers and sellers adhering to local stay-home orders and avoiding non-essential transactions, there were fewer properties listed and fewer offers made in March and April resulting in 29.7% fewer homes closing this May than did during the same month last year.
However, as Idaho and other states progress in their stages of re-opening, activity in the Boise housing market is picking up. Pending transactions (properties with accepted offers that should close within 30-60 days) reached 1,957. This is up 4.7% from May 2019 and 25.4% from April 2020. Since these pending transactions will likely close in June or July, we should see higher numbers of closed sales in next month’s statistics. With the anticipation of many buyers and sellers who would have purchased and sold homes this spring now looking to make these moves in the coming months, we are preparing for a very busy summer season!
Though May marked a drop of 3.9% from April’s record, the median sales price was up 6.0% from the previous year, and new record highs are expected to be set in the months going forward. The month to month drop was concerning to some, but it’s important to note this figure is not indicative of slowing demand or a weakening market position. Rather, it is primarily driven by the fact that new construction, which is generally more expensive than existing properties, made up a smaller share of closed sales last month. Fewer of the more expensive homes being sold results in a lower median price.
As mentioned at the start of this article and as predicted by Realtor.com prior to the start of the COVID-19 pandemic and by Veros Real Estate Solutions’ forecast post its start, we expect the Boise housing market will experience some of the highest appreciation in the country over the coming 12 months. This can be a positive or negative prediction depending on your current position. If you’d like to talk more about how this could affect your future buying or selling decisions, please give us a call! We love any opportunity to sit with our clients and friends and help them navigate their real estate goals.
If you're interested in knowing more about the current state of the market, check out the full Boise Regional Realtors Market Report HERE.