Quarterly Real Estate Update
Boise ID Metro AreaQ3 2021 Report
Q3- Home Price Increases Slow 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- Q3 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 Q3 2021 rose 4.6% from the previous quarter to $525,000. Still a strong showing (1.5% per month increase). That is about half the gain we saw in the second quarter (9.25%) and a slowing is typical for this time of year.
Year over year, the Ada County median existing home price is up a strong 34.6%.
The Canyon County median existing home price for Q3 2021 rose only 2.3% for the quarter to $385,000, after rising an amazing 13.25% in the previous quarter.
Year over year, the median in Canyon County is now up 39.5%. With lower prices than Ada County, there's room for prices to continue rising, but maybe this is affordability and inflation pushing back on home prices.
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 somehow 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 Q2 2020 to Q2 2021. We are up an amazing 41% in that column, but we only came in FIFTH for highest appreciation rate on the full list of metros. Also note that Boise prices are still below our nearest neighbors, Salt Lake City & Reno.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 winter. 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 just over a 3-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 7-8 days. That is double what it was.
Discounts Have Returned To Boise Housing Markets
For the first time in almost a year, the average home buyer paid LESS than asking price in September. The average sale price in Ada County was 0.77% below asking in September. The average sale price in Canyon County was 0.38% below asking. The bidding wars are fading as inventory and market times are growing. Buyers have regained some bargaining power to get concessions from sellers.
Back in 2008 when prices were falling, the discount off asking reached almost 5% as you can see by the bump in the green line. In the past year the market was so tight and bidding wars so prevalent, the discount became a premium as high as 4% over asking.
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.