Boise, ID One of the Hottest Real Estate Markets in 2023

Published:
July 9, 2020
Last updated:
December 1, 2022
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If you’re thinking of buying real estate in 2023, Boise, ID may be the place to look. Home prices have already skyrocketed over the past few months, and experts anticipate prices to continue on a steep uphill climb throughout the year.

This article will outline the current state of the real estate market in Boise and why you may want to invest here.

There’s a lot more to Boise than just potatoes. When it comes to real estate, Boise has been one of the hottest centers in the country in 2023. Not only are homes relatively affordable in Boise compared to many other centers across the nation, but they’re also dropping in price slightly.

Boise Real Estate Market Forecast: 2023

More specifically, home prices will slow their ascent through 2023, getting away from the rocket-like rise we saw over the past 2 years. Additionally, interest rates have skyrocketed giving some homebuyers pause as to whether or not to invest in the real estate market in Boise, ID.

Current Housing Trends Favoring Centers Like Boise ID

One of the latest trends in the national real estate market is a shift away from coastal areas into more interior centers. And the influx of people to Boise over the recent past is just one example of how this trend is being solidified.

People are increasingly looking to interior centers as opposed to spots along the water, largely to get away from much more expensive cities in favor of lower-priced areas, and Boise fits the bill, for now.

Home Prices in Boise Are Slowing Down

According to real estate research firm Zillow, home prices in Boise have dropped 5.1% over the past 12 months. As of December 2022, the average home price in Boise is $497.877.

Boise’s average price is just slightly under the surrounding Ada County’s average price of $540,000, but still over the state-wide average price in Idaho of $467,694.

Current State of the Boise Housing Market

According to national trade group Realtor.com, prices in Boise have grown faster than most other big housing markets in the US. The capital city of Idaho is ranked number 4 in Realtor.com’s latest list of the hottest housing markets in the entire nation.

Numbers don’t lie when it comes to the temperature and health of the Boise housing market. Check out some of the stats surrounding the current real estate market in Boise, according to RedFin:

  • Average sale price: $475,000
  • Homes sell about 2% under listing price
  • Increase in sale price year-over-year: – 3.8%
  • Average number of days on the market: 36

Boise Metropolitan Area Market Forecast

The Boise Metropolitan Area comprises Boise, Meridian, Nampa, and Caldwell, along with smaller towns and cities. Let’s take a look at how other cities in the Boise Metropolitan Area are doing right now and what their forecast is over the next year.

Meridian

  • Average sale price: $554,000
  • Homes sell 2% below listing price
  • Increase in sale price year-over-year: 1.7%
  • Average number of days on the market: 44

Nampa

  • Average sale price: $423,000
  • Homes sell 2% under listing price
  • Increase in sale price year-over-year: 0.8%
  • Average number of days on the market: 50

Caldwell

  • Average sale price: $380,000
  • Homes sell 2% over listing price
  • Increase in sale price year-over-year: -5.4%
  • Average number of days on the market: 49

Boise Real Estate Market Forecast

The housing inventory has eased in Boise, and sales continue to increase at nearly all the price points. Sellers can continue to benefit from the continued strong demand for housing in the city.

Boise real estate market forecast expectations continued drops in home prices throughout the remainder of 2022 and into 2023. This may encourage homebuyers if interest rates begin to drop as well, although there will be concerns about equity.

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Prime Investment Opportunity For Homebuyers in Boise

This presents Boise homebuyer hopefuls with a prime opportunity to get into a relatively affordable market and ride the wave of rapid price appreciation.

Along with timely mortgage payments, homeowners in Boise can take advantage of an increase in home equity as property values continue to increase. This, coupled with the current low interest rate environment, makes now an ideal time to buy a home in Boise, ID.

Healthy Employment Rate in Boise

The rate of job growth in Boise is two to three times the national average, and the unemployment rate is low at 4.5%.

And with the population growth rate as much as triple the national average, Boise presents buyers with a fabulous opportunity for investment. Whether to buy a primary residence or to purchase an investment property to rent out, there’s a lot of opportunity in Boise in 2021.

Spike in Population in Boise

Many people have already seen the attraction to Boise over the recent past, resulting in a population boom in the city. In fact, the population has roughly doubled over the past 30 years as people seek out more affordable housing compared to much more expensive cities in Oregon and Washington.

Plus, the city’s favorable climate, gorgeous natural landscape, rich culture, and plenty of employment opportunities along with its affordable housing market make it an attractive place to dwell. This boom has quickly resulted in Boise continuing to be one of the hottest housing markets in the US for 2021.

A large chunk of the people moving into Boise are millennials who seek out a place that offers the right combination of affordable housing, employment opportunities, good schools, and an overall better quality of life.

On the other end of the spectrum of newcomers to Boise are those who are either nearing retirement or are already retired and are moving out of the more expensive cities and choosing something that is easier on their pocketbook without sacrificing sound health care.

In fact, home prices in Boise increased at a higher rate compared to some of the biggest metropolitan areas in the country over the past year.

Housing Supply in Boise a Growing Issue

But the housing supply in Boise, Idaho has become an issue, especially when considering the incredible demand that the city has seen over the recent past. The supply simply cannot keep up with the current demand in the city.

Tight Inventory in Boise

There are fewer homes available right now to serve the demand. With so many people flocking to Boise in such a short period of time without as much new construction to meet the demand, a lot of pressure is placed on the real estate market, which is what we’re seeing in Boise right now.

The supply situation is so dire in Boise right now that there is only a 0.31-month supply in the city. That’s extremely tight, which is a large reason why prices are being driven up.

Given the information here, it’s clear to see that the Boise real estate market forecast is a bright one for the largest city in Idaho.

Is Now the Time to Buy in Boise?

According to many sources, Boise is one of the hottest real estate housing markets in the entire nation for 2021. With relatively low housing prices, an expected rate of increase faster than most centers in the US, and current low mortgage interest rates, 2021 may be the perfect year to buy a home in Boise ID to help you build wealth in a relatively short period of time.

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Ready to Apply For a Mortgage in Boise?

If you have questions about mortgages in Boise, Sammamish Mortgage can help. We are a local mortgage company based out of Bellevue, Washington that has been serving the entire state, as well as Oregon, Idaho, and Colorado since 1992. Our mortgage financing professionals can work with you to help you determine which one of our mortgage programs is right for you. Contact us today with any questions you have about mortgages in Boise, Idaho.

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