Boise Real Estate Market: Prices – Trends – Forecast 2022

February 2, 2022
Last updated:
June 3, 2022
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Are you looking to buy a home in Boise, Idaho? If so, understanding current market trends and looking ahead at the future housing market in the city will help ensure that you make a sound purchasing decision.

What are the top Boise real estate trends over the past year? Perhaps more importantly, what is the Boise housing market forecast for 2022? Let’s answer these questions to help you determine whether next year is a good time to buy.

The Top Boise Real Estate Trends

Idaho as a whole has seen incredible growth over the recent past, with a slew of new residents flocking to the state over recent years. In turn, demand for housing has skyrocketed, which is why Idaho and the cities within it have seen such a rapid increase in price appreciation in the housing market.

Boise, in particular, has seen significant growth in population, driving demand for housing and a jump in home prices. In fact, Boise has been named one of the hottest housing markets in the entire country as a result.

Over the past 12 months, home prices in Boise increased by a whopping 41.3% over the past year to $524,031.

That said, perhaps the growth in home prices may be slowing somewhat. RedFin describes Boise’s current housing market as “somewhat competitive,” with the average home selling for around 1% under listing price and going pending in about 14 days. Hot properties sell a bit higher at around 1% over listing price and go pending in about 5 days.

Many new residents are coming from much more expensive nearby states looking for more affordable housing without sacrificing employment opportunities and lifestyle. In 2018 alone, almost 80,000 people moved to Idaho, and the largest portion of them came from California. That said, another large amount came from Washington State.

While Boise’s home prices continue to climb, housing is still much more affordable compared to other parts of the nation.

Boise Mortgage Rates

Looking Back: Boise Housing Market Forecast This Past Year

Real estate experts may have agreed that Boise was poised to be one of the hottest real estate markets in the country a couple of years ago, but no one could have anticipated the enormity of price growth that the city has seen over the past couple of years.

Home prices have been on a steady incline for the past few years, but it wasn’t until 2020 that things really took off. As mentioned, prices have increased 41.3% over the past 12 months, but from January 2020 until year-end 2021, home prices in Boise have risen nearly 59%.

Homeowners who got into the housing market prior to this point have benefited greatly as a result through increased home equity.

Interestingly, early housing market forecasts for Boise predicted a significant decline in home price appreciation for 2021 compared to 2020, though price growth was still expected to remain above the long-term average.

That’s not exactly what happened, however. In fact, home prices increased at double the rate over the course of 2021 compared to the year before, according to data compiled by Zillow. Compared to this year’s home price appreciation rate of over 41%, 2020’s home prices increased nearly 21%. Clearly, experts sorely underestimated the strength of Boise’s housing market for 2021.

Looking Forward: Boise Housing Market Forecast 2022

Considering the remarkable gains in home prices in Boise, many might wonder if the housing market ‘bubble’ will eventually burst. After all, how high and fast can home prices climb? Will the market crash, or won’t it?

Despite soaring home prices, a Boise real estate market crash in 2022 does not seem very likely. It’s clearly a hot housing market, as demand is expected to stay elevated while supply continues to remain tight. Housing markets don’t typically crash under these circumstances.

Only when there’s a surplus of inventory and a drop in demand can a housing crash be imminent. Instead, it’s more likely that home prices will continue to increase over the course of 2022, though perhaps at a more reasonable pace. It’s possible that we won’t see the same level of takeoff in home prices in 2022 as we’ve seen this year.

Currently, Boise has a mere 0.3-month supply of available housing to meet demand, which is among the lowest in the entire country. That’s a lot lower than the 5- or 6-months’ supply that’s characteristic of a ‘balanced’ market.

In the meantime, population growth in Boise remains very strong. Over the past decade, Boise’s population has grown 14.6% and is one of the 10 fastest-growing cities in the US as a result. With a rise in numbers among residents comes a continued demand for housing.

Both of these factors combined paint the picture of a city that’s not yet poised for a housing market crash. Add inflation, specifically asset inflation due to the Fed’s easy monetary policy and exploding balance sheet, current housing prices may look like a bargain in the future.

Of course, no one can predict with absolute certainty what will happen to the housing market in Boise in 2022 and beyond. That said, it seems very unlikely that Boise’s housing market will crash any time next year.

Best Area to Buy a House In Boise and Surrounding Suburbs

Your age, work commute (or lack thereof), family size and future plans can all directly affect where you choose to buy in or around Boise.

In Boise

If you live in the city itself, and want a nice neighborhood, be prepared to pay for it. You’ll get your money’s worth in these three neighborhoods:

3 best neighborhoods in Boise, ID

  • North End – median home value: $452,700: Tree-lined streets are the hallmark of the historic section of Boise known as the North End. Small town vibe, quaint homes (many dating back to pre-1930s era), lots of little well-maintained parks, and many National Register of Historic Places listings (especially on Harrison Blvd) make this area a very desirable place to live.
  • East End – median home value: $438,500: The East End boasts dozens of stunning Victorian homes scattered across the oldest area of Boise. Don’t worry; there are also plenty of less expensive but still beautiful residences that bring the median home value down to slightly under the North End.  The atmosphere here is laid back and rega, with easy access to both the river and the foothills.
  • Boise Heights – median home value $455,600: Want glitz and glam? Boise Heights is Idaho’s true luxury neighborhood. There’s more space than in the North End or East End, but plenty of amenities. The cost of living index is a staggering 124 (compared to Boise overall, which stands at 90) so be prepared to shell out the big bucks to breathe rarified air.

Outside Boise

Too rich for your blood? You can find lovely, slightly more affordable homes when you move a little outside the city. For telecommuters this could be the idea way to enjoy being close to the big city without paying the inflated prices driven by inventory shortage and a seller’s market.

9 suburbs 20-30 minutes from Boise, ID

  • Emmett, ID – median home value: $118,600
  • Caldwell, ID – median home value: $136,2400
  • Fruitland, ID – median home value: $140,400
  • Nampa, ID – median home value: $149,700
  • Middleton, ID – median home value: $163,900
  • Kuna, ID – median home value: $175,300
  • Garden City, ID – median home value: $213,200
  • Meridian, ID – median home value: $242,000
  • Eagle, ID – median home value: $383,700

Should You Buy in the Boise Housing Market in 2022?

Considering the fact that home prices have increased significantly over the recent past, is it still a good time to buy? Or has the opportunity passed to make an affordable home purchase?

There are still good reasons to buy a home in Boise, even if you’re a first-time homebuyer. In fact, a recent study ranked Boise as the second-best city in the US for first-time buyers.

Personal finance website WalletHub looked at 300 cities of different sizes across 26 key indicators. From this comparison, Boise was found to be the second most favorable housing market for first-timers in terms of affordability, attractiveness, and quality of life.

While the best time to buy a home in Boise may have been before home prices started to take off, now is still a great time to buy. Home prices are expected to continue rising, giving homebuyer hopefuls the chance to take advantage of an increase in home equity and the opportunity to build wealth over the long run.

Further, mortgage interest rates continue to remain relatively low. As of this writing, the interest rate for a 30-year fixed-rate mortgage is 3.11%. According to the Mortgage Bankers Association (MBA), rates are expected to inch up slightly over 2022 and end the year off at around 4%.

Buying a home today will likely mean lower prices and mortgage rates compared to what’s to come in the months ahead. If you’re ready to buy a home, be sure to consult with a seasoned mortgage company in Boise so you’re adequately prepared for the homebuying process.

Why Choose a Sammamish Mortgage?

At Sammamish Mortgage, we can help you get fully preapproved for a mortgage, including underwriting if you’re competing for a home in a tough market like Boise.

Sammamish Mortgage has been in business since 1992 and has assisted many homebuyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help you get preapproved. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon, and Washington.

Contact a loan officer if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.

Get an Instant Mortgage Rate Quote Today

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