Boise-area home-buying frenzy leads to buyers’ remorse as costs set another record
For the fifth time this year, home prices in Ada County have reached record-setting highs.
The median price of the 858 homes sold in the Boise area in November was $359,900, according to the Intermountain Multiple Listing Service. The previous record was $355,000, set in August.
Home prices are now two-thirds higher than they were five years ago, in November 2014 (median $215,319), and more than twice what they were 10 years ago ($155,000).
“A lot of it is still driven by low inventory, high demand and the fact that new construction is having a tough time keeping up with the demand,” Rick Gehrke, a real estate agent with RE/Max Executives in Nampa who sells in both Ada and Canyon counties, said in a phone interview.
The median price in Canyon County in November was $264,000, breaking the $260,000 record set one month earlier. That’s almost twice the $136,500 median 5 years earlier and 150% higher than $105,199 a decade ago.
The median is the price in the middle of the houses sold. Half cost more and half cost less.
Boise area housing receives national attention
On Thursday, Realtor.com predicted that Boise would have the fastest-rising prices and sales among the nation’s 100 largest markets in 2020.
Even if it benefits him with higher commissions, Gehrke said he doesn’t like a red-hot market. Buyers sometimes make snap decisions to buy a home based on the pressure they feel to grab a place that may not remain on the market long.
“They’ve got to jump at something before it’s gone, and then they have buyer’s remorse and feel like they overpaid,” he said. “I prefer a market that has a little calmer pace.”
Low mortgage rates help keep the boom going. On Thursday, mortgage buyer Freddie Mac reported the average rate on a 30-year fixed-rate mortgage rose to 3.73%. The rate has crept up slowly from the year’s lowest rate, 3.49%, set in early September.
Other details from the latest monthly listing-service report:
▪ The median price for the 2,582 existing homes sold in Ada County was $330,500. For the 276 new homes, it was $439,849.
▪ In Canyon County, 260 existing homes were sold, with a median price of $241,300.
▪ Highest median prices: Northeast Boise, $660,500; Eagle, $544,900; North Boise, $542,450.
▪ Lowest median prices: Northwest Caldwell, $239,095; Northwest Nampa, $239,900; Southwest Caldwell, $249,245.
This story was originally published December 13, 2019 at 5:00 AM.
