Official home-price report in ‘19 made Idahoans’ jaws drop. This year? They’ll hit floor
It’s official. Again.
For the second year in a row, Boise home prices rose at a faster clip over the 12 months ending in September than in any other of the 100 largest metropolitan areas in the nation, a new federal report says.
Home prices in Boise increased 16.4%, according to the Federal Housing Finance Agency. That’s even faster than the 11.1% increase a year ago, when Boise also led the nation.
The Boise area’s scorching market once again helped Idaho lead the nation’s 50 states and the District of Columbia. Last year, Idaho’s average statewide price increase topped the list at 11.6%. This year it’s 14.4%. Arizona was No. 2 at 11.1%, followed by Washington at 10.8%, Utah at 10.7% and Tennessee at 10%.
Unsustainable, you say? What goes up must come down? Not according to one veteran local real estate agent.
“It will be interesting to see what happens, but, if anything, it’ll probably intensify at the beginning of 2021,” said Rick Gehrke, an agent with RE/Max Executives in Nampa who sells in Ada and Canyon counties. “If Joe Biden affects things where interest rates go up or he shuts down a bunch of stuff, then we are anticipating a lot more people are going to leave California, Portland and Seattle and come here even more than they are now.”
Nationwide, there is more demand for houses than there are houses being built. The coronavirus pandemic caused a slowdown in the number of homes sold in April and May as agents were unable to schedule open houses. The Boise-area market rebounded in June, and sellers have attracted a large number of out-of-state buyers eager to leave Calfiornia, Oregon and Washington.
The median price of 1,112 homes sold in Ada County in October was $406,684, according to a report from Boise Regional Realtors. That was down slightly from a record $409,945 in September.
In Canyon County, the median price of 530 homes sold was $323,450. That marked the ninth straight month with a record. Since February, the median price has risen $58,450.
The Mountain region, one of nine divisions used by the U.S. Census Bureau, registered the largest regional increase in home values at 9.6%, the federal report said.
Boise’s increase edged out Tacoma, Washington (12.8%), Phoenix (12%), Wichita, Kansas (11.8%), and Colorado Springs (11.3%).
Nationally, home prices rose 7.8%. States showing the lowest annual appreciation were North Dakota (4%), Iowa (4.7%), Louisiana (4.8%), Alaska (4.9%) and Hawaii (5.2%).
Baton Rouge, Louisiana, had the lowest increase for metropolitan areas, at 2.1%. Lake County, Illinois, and Kenosha County, Wisconsin, was second at 2.8%, followed by Houston at 3%, Honolulu at 3.2% and Elgin, Illinois, at 3.9%.
This story was originally published November 25, 2020 at 12:00 AM.
