It is worth noting that historically, supply reaches its lowest point in February. While the demand from homebuyers has been surpassing the available supply since the beginning of 2023, there are early indications that this trend is slowing down, just as we head into a period of increased new listings. However, with buyer demand surging in January, demand may have been pulled forward by a few months. Traditionally, March marks the beginning of the spring selling season in the Treasure Valley, with nearly 40% of the annual purchase volume occurring between then and June. However, the recent shifts in demand are more significant than would be expected purely from an affordability standpoint, suggesting there is some psychology at play. Mortgage rates are a reliable predictor of home-buying demand, particularly in the short term, and even a slight uptick in rates can raise the cost of purchasing a home. As of the week ending March 9th, the average 30-year fixed-rate mortgage climbed to 6.73%. Despite a reduction in new home starts, few builders are having trouble meeting demand.ĭespite the uptick in buyer demand at the beginning of the year, the trend has tapered off in the last few weeks as mortgage rates have ticked higher. New construction inventory remains more abundant. Additionally, few people are in a position where they have to sell, given the robust labor market and a healthy economy. The decline in supply can be attributed to the resale market, with homeowners having mortgages with interest rates below 4% and reluctant to give them up for a higher rate on a new home. The inventory is nearly double last year's level, but it remains well below balanced levels. Sales to first-time buyers climbed to 31% of the market in January, up from 27% the previous year. With fewer bidding wars, less competition, and more homes to choose from, buyers are enjoying better market conditions than last spring. The increase in affordability due to lower home prices and a decline in mortgage rates have resulted in buyer activity jumping. RECOMMENDED READING: Idaho Housing Market Forecast for 2023 Star and Middleton were the only two cities in the Treasure Valley to record a yearly increase in prices, with Star gaining 11.7%, and Middleton's prices rising by 2.6%. There has been a slight increase in Ada County and a decrease in Canyon County, with combined prices remaining unchanged from January, marking the first month without a decline since October. According to, despite the median single-family home price in Ada County falling 10.7% from the previous year, it finished February at $491,057, and Canyon County prices dipped to $389,945, down 10.2% from the year before. In February 2023, the Boise housing market is showing some stability as the spring selling season commences. The changes we’re seeing in Boise price growth, inventory, and slower market times are moving us toward more normal market conditions. Historically low inventory, coupled with rampant demand, resulted in above-average price growth and a highly competitive market.
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