Quarterly Real Estate Update
Boise ID Metro AreaQ2 2021 Report
Q2- One of Strongest Quarters Ever in Boise Metro.
Record low mortgage rates and growing population are driving unprecedented demand in the face of extremely low housing inventory and this is driving home prices up.
Boise Metro Home Prices- Q2 2021
Quarterly Median Existing Home Prices are the most reliable indicator of housing market price trends. Monthly numbers are too small and erratic. I also use only existing homes in my chart, as the ebb & flow of new construction can skew the numbers.
The Ada County median existing home price for Q2 2021 jumped 9.25% from the previous quarter to $502,000. That is less of a gain than we saw in the first quarter (11.26%) and a sign that prices increases are beginning to slow some. It is normal for the Boise metro market to slow with the summer heat. Year over year, the Ada County median existing home price is up a remarkable 43.5%.
The Canyon County median existing home price for Q2 2021 accelerated an already strong pace, rising 13.25% from the previous quarter to $385,000. It is clear that the Canyon County market is showing no sign of slowing yet.
Year over year, the median in Canyon County is now up an amazing 44.2%. With lower prices than Ada County, there's room for prices to continue rising.
Boise Median Home Price Comparison
This table helps you compare Boise Metro existing-home median prices and trends with national, regional and most relevant major metros covered by NAR in their quarterly report. Please note that NAR blends prices together in metro areas and those numbers may not match our local MLS stats exactly.
Copyright 2021 National Association of REALTORS®. All rights reserved.
Boise Metro home prices have appreciated very quickly over the last 3 years. We surpassed the national median in 2018, but remain well below the more relevant Western region.
The year over year column shows the change from Q4 2019 to Q4 2020. We are up an amazing 27.1% in that column, but we only came in SEVENTH for highest appreciation rate on the full list.
Housing Inventory ShortagesLocally, our supply levels are a fraction of normal and this is virtually a guarantee that prices will continue to climb until supply grows substantially.
Supply started gaining on sales in March and should continue to through fall. Ignoring the covid year, this is a normal annual trend in the Boise Metro. We will need many, many more listings for inventory levels to climb. If you are one of those future buyers hoping for a downturn, supply will have to reach near 6 months before prices will go flat or down. Today, we have less than a 2-week supply of homes, and that is up a little from where it was. Half the homes sold in Ada/Canyon last month sold in just 4 days again. Buyers must be ready with financing lined up. A good agent/broker can help you get there fast, advise you on what it might appraise for and keep you from overpaying.
US Nearly 4 Million Homes Short
Boise Idaho is not the only place suffering from inventory shortages in housing. Freddie Mac's recent analysis found the US needs to build 3.8 million single-family homes to meet demand, factoring in household formation, second home purchases and replacement of damaged/aging homes. Before we can make gains on that shortfall, we need to build at least 1.1-1.2 million homes each year just to meet existing demand.
Source: The Wall Street Journal April 15, 2021 "US Housing Market Is Nearly 4 Million Homes Short of Buyer Demand"
I have many more charts in my Market Monitor for more information on Boise Metro housing markets and trends, updated monthly.
I am always happy to answer real estate questions; recommend a good lender, provide a free CMA or neighborhood history, an investment analysis, should-I-refi-or-remodel questions, first-timer education, etc.