The Boise North End median home sale price exceeds $1 million. in April

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Affording Boise: Home Ownership

Soaring rents. Skyrocketing home prices. Double-digit housing cost increases in the Boise area are creating increasingly urgent problems for low-income, working-class, and even moderate-income Idahoans who need housing. Affording Boise is the Idaho Statesman’s special report series on housing. This collection focuses on home ownership. A separate collection focuses on rental homes, including apartments.

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Do you want to be a millionaire? Just sell your home in Boise’s North End for the median price.

For the first time ever, the median sale price of a home in a Boise neighborhood topped $1 million. The median in North Boise in April was $1,034,999, according to the new April report from the Intermountain Multiple Listing Service.

Last month, 20 homes were sold in North Boise – the area defined by the Multiple Listing Service which includes the North End, Highlands and Central Foothills. The median is the midpoint, which means half of the homes sold for more than $1,034,999 and the other half for less.

The neighborhood record comes as prices in Ada and Canyon counties again set records. The median in Ada County was $595,000, an increase of 23.9% from April 2021. In Canyon County, it was $476,500, an increase of 20.3%.

Despite these increases, real estate experts felt the Boise market was calming down. Sales are not as frantic as they were last year. They observed fewer people attending open houses and less competition for houses.

“It feels like 2019” before the pandemic helped heat up the Boise market, said Elizabeth Campbell, vice president of training and growth at Lysi Bishop Real Estate.

“It’s turning into a healthier market,” Campbell said over the phone. “And we like that. We are super excited about more inventory.

Arisa McRoberts, real estate agent at Silvercreek Realty Group, said the market may be a little less tough on buyers as inventory rises. Low supply and strong demand have been the main drivers of price increases in recent years.

The last three McRoberts customers whose offers were accepted bought their homes at or below the asking price.

“It’ll be exciting for new homebuyers for things to stabilize a bit,” McRoberts said over the phone, “so they can focus a bit more on what the real experience is supposed to be like.”

Boise is the most overvalued US market

Boise in March was the only market out of 100 surveyed where the amount buyers would be expected to pay based on past price trends declined from a year earlier, according to a new report. The Florida Atlantic University and Florida International University report said, “Boise remains the most overvalued housing market in the nation by a wide margin.”

Moody’s Analytics, an economic research firm, agrees. In a May 2 article, Fortune cites Moody’s data indicating that Boise is the most overvalued housing market among the 392 metropolitan statistical areas surveyed. Fortune said Moody’s found home prices in Boise are “73% above what fundamentals would support.”

Passing the million dollar mark highlights a rapid increase in North Boise prices. In March, the median price of 28 homes sold was $812,392. In April 2021, the median was $647,250. That means prices in North Boise are up 60% in 12 months as the Boise-area real estate market continues to challenge buyers and reward sellers.

In March, two other neighborhoods were closer to the $1 million mark than North Boise: Northeast Boise at $950,000 and Eagle at $932,450. Prices in both regions fell in April. Northeast Boise’s median fell to $918,000 and Eagle’s to $920,000.

“The answer in the North End is always, ‘It depends,'” Campbell said. “…There are specific enclaves in the North End that are just plain exclusive. Homes don’t come here very often, so they’re going to achieve those higher ratings on average and have a higher median price.

Neighborhood prices often vary more than countywide prices because the number of homes included in the median price calculation is much smaller. A few extremely expensive houses can pull the median up. There were 23 northeast Boise homes and 75 Eagle homes sold last month.

The drop in prices in these two higher priced areas occurred amid rising inventory across the county. From last April to April, the inventory of homes for sale in Ada County increased by 170%, according to regional real estate agents in Boise.

There were 1.1 months of inventory in April, meaning if no more homes came on the market, supply would run out in 1.1 months. In April 2021, there was only 0.4 months of inventory. Experts consider four to six months of inventory to be a balanced market.

Demand for high-end homes has slowed, Campbell said. Homes sold in Ada County for $2 million or more now spend an average of four months on the market, Campbell said, citing statistics tracked by his company.

“In a healthy market, that should trickle all the way down and start affecting the bottom prices,” Campbell said. “Now it could be a blow, where it’s just a little hiccup in the market, who knows. … We just have to keep watching it.

While still a strong seller’s market, rising inventory and rising mortgage rates could help create an eventual slowdown in prices — a slower rate of growth or even a decrease.

But it hasn’t happened yet. Much of the increase comes from new construction. Their median price in Ada County in April was $645,000, a 36.8% year-over-year increase. The median price for existing homes was $570,000, a much smaller 16.9% year-over-year increase.

Other details from the SEO Service’s latest monthly report:

  • Homes in Ada County spent an average of 16 days on the market, a decrease from the 20-day average in March, but a slight increase from the 14-day average of April 2021.
  • Only 3.4% of homes in Ada County sold for less than $400,000. Seven hundred and eighty-nine of 817 homes sold for $400,000 or more.
  • The median price for existing homes in Canyon County — which has many of the cheapest homes available on the market in Treasure Valley — was $425,000. They spent an average of 12 days on the market.
  • Lowest median prices: Parma, $382,500; Caldwell Southwest, $401,886; North West Nampa, $431,000.

This story was originally published May 11, 2022 11:09 a.m.

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