BOISE, Idaho — After years of a red-hot housing market across the Treasure Valley, data continues to show that the market is cooling.
Market statistics from Boise Regional REALTORS show that the median home sales price in Ada, Elmore, and Gem counties have all dropped year-over-year.
- Median sales prices Aug 2022: $565,000
- Median sales prices Aug 2023: $520,000
- -8% change
- Median sales prices Aug 2022: $337,498
- Median sales prices Aug 2023: $335,000
- -0.7% change
- Median sales prices Aug 2022: $490,750
- Median sales prices Aug 2023: $438,248
- -10.7% change
Tom Wheeler is a real estate agent with HomeFound Boise, a local real estate company that focuses on bringing real estate resources to everyone. He said recent interest rate hikes have been putting pressure on pricing.
"We're having a lot of conversations with buyers on how to work through higher interest rates," Wheeler said. "Because with higher interest rates, we've seen a reduction in purchase price."
Current mortgage rates are above 7% - the highest they've been in more than 20 years.
"It's definitely making an impact on pricing," Wheeler said.
Prices may not stay down for much longer.
"Overall, I don't foresee this blip in the real estate market being any negative impact over the long run for Boise and the Treasure Valley," Wheeler said. "We expect that as soon as interest rates make a little bit of a drop, which could be as soon as this next spring, we'll see an uptick again in buyer activity."
Giving buyers an opportunity - Wheeler said buyers now have a chance to make concession with a seller, when they may not have had as much control in previous years.
"If you're a buyer in this market, I think what you need to know is that interest rates will change - but pricing won't," Wheeler said. "Once you're under contract, the price you get on your home is that price. However, your interest rate can fluctuate. So if you can get in the door with a property that's less than what you might have paid a year ago - although your interest rate might be higher, hopefully in the next year, you'll have a lower interest rate - you can adjust that downward."
He said Boise has maintained its level of interest, especially with more companies and development coming to downtown. In addition to growth and more construction in other areas of the Treasure Valley, like Canyon and Elmore counties.
Watch more Local News:
See the latest news from around the Treasure Valley and the Gem State in our YouTube playlist:
HERE ARE MORE WAYS TO GET NEWS FROM KTVB:
Download the KTVB News Mobile App
Apple iOS: Click here to download
Google Play: Click here to download
Watch news reports for FREE on YouTube: KTVB YouTube channel
Stream Live for FREE on ROKU: Add the channel from the ROKU store or by searching 'KTVB'.
Stream Live for FREE on FIRE TV: Search ‘KTVB’ and click ‘Get’ to download.