“The Boise housing market: A thriving real estate hotspot or a bubble waiting to burst?”
The Foothills neighborhood in North Boise, Idaho, has been impacted by the recent trends in the Boise housing market. Over the past couple of years, the Boise housing market has experienced a significant increase in homebuying activity, driven by an influx of Californians, particularly tech industry workers from the Bay Area, seeking the tranquility of the Rocky Mountains.
However, in 2023, home sales in the Boise housing market have declined, and inventory continues to decrease. The median sale price for a home in the Boise metro area reached its peak in May 2022 at $549,580. By May 2023, that figure had dropped by 14.5% to a median sale price of $470,000. Although home prices have moderated, they remain higher than pre-pandemic levels.
In terms of inventory, available homes for sale have decreased across the board. In the Boise metro area, for-sale inventory fell by 46% from August 2022 to August 2023. In the city of Boise proper, housing inventory is down 39.4% year-over-year. This decrease in inventory is likely contributing to the decline in home sales, as there are not enough available homes to meet the demand of homebuyers.
Additionally, houses in the Boise housing market are selling faster than in previous years. The median number of days on market for a home for sale in the Boise metro area decreased from 33 days in August 2022 to 27 days in August 2023. In the city of Boise proper, the median days on market decreased even further, from 26 days in August 2022 to 18 days in August 2023.
Overall, the data on a potential housing market crash in Boise is mixed. While home prices have come down from their peak in 2022, they remain elevated compared to pre-pandemic levels. Inventory continues to decrease, and the number of home sales has declined in many areas. However, this decline in sales is likely due to a lack of available inventory rather than a decrease in demand.