Boise, Idaho, is one of the country’s fastest-growing cities and this had a positive impact on the local housing market in 2019. Over the past few years, Boise has emerged as a sleeper investment opportunity, a growing city with a burgeoning local economy which fueled demand on the real estate market. Yet, housing prices remained affordable, meaning investors were not afraid they would be buying at the top of the market and lose money afterward.
Market analysis shows 2019 was, as expected, a seller’s year in Boise, with supply and demand dynamics driving home prices up. New record-setting prices were recorded every few months. According to federal data, for the second quarter of 2019, home prices in Boise rose faster than anywhere else in the United States.
Let’s have a look at some of the figures for 2019. The cost of a medium-range house in Boise rose by nearly $1,000 a week. The highest increase was recorded in Ada County, where home prices reached a new record of $342,765, up $38,000 (12.4 %) from the previous year. In Canyon County prices went up by $34,200, climbing to $243,200.
Following the trend that emerged in the previous years, 2019 saw a decline in available listings in the Boise Metro area as well as in SW Idaho, fueling the demand and driving prices up. With a limited number of listings and a growing population, the share of higher-priced (above $300,000) home sales rose in 2019, driving up median prices as well.
Higher demand means that houses sold fast in 2019. For the month of October, for instance, the average number of days a house spent on the market was 23 in Ada County and just 21 in Canyon County.
Good investment for the future
What made investing in Treasure Valley real estate so attractive? There are several key factors making Boise a good place to live: strong population growths and job growth triple the national average. At the same time, the city had (and continues to have) a low cost of doing business and a low unemployment rate.
Another key factor that made investing in Boise real estate so alluring in 2019 were the excellent predictions for the next few years. With housing prices in Ada County expected to rise by 31% over the next three years and as much as 33% in Canyon County, it is easy to see why local and especially new residents were interested in investing.
Ending the year on a high note
As compared to other markets, due to increasing demand, sellers in Boise held extremely good leverage in negotiations and could expect to sell a house for the full asking price. By December 2019, the median listing price of homes in Boise was $370,300 up 5.8% as compared to the same month in 2018 At the same time, the median listing price per square foot was $200. On average, homes in Boise sold after 55 days on the market.