Drop in Mortgage Rates Increases Buyer Interest in Boise, Idaho

The drop in mortgage rates is significantly affecting the real estate market in the city of Boise and Ada County in general; a buyer is now saving up to $500 monthly compared to earlier this year. Due to this and the slight decrease in Boise home prices, many are now considering buying a home.

After reaching a peak of nearly 8% in October of last year, mortgage rates have now settled just above 6%, marking their lowest point since 2023. Both buyers and homeowners have rushed to take advantage of these reduced rates, as nationwide, mortgage applications for new homes increased by 15% in August, and refinancing applications more than doubled compared to the previous month. In Ada County, the median home price has decreased for the third consecutive month to $534,900, much lower than the high prices of spring. For the city of Boise, there was a small year-over-year increase of 1.2%, raising the median price to $525,000.

September home sales reflect some previous conditions when mortgage rates were a percentage point higher. For example, in Canyon County, prices increased by 1.9% to $423,697, in line with spring levels.

Now, following the summer slowdown, there has been an increase in attendance at open houses, particularly for homes priced under $700,000. In Treasure Valley, there are currently 2,887 homes for sale, an increase of nearly 24% compared to October last year. Translating this to the current sales pace, this region has a housing supply of approximately 2.84 months.

Undoubtedly, this increase in inventory has positively affected home sales, which have increased by 14% so far this year. The average home sells in about 30 days, which is slower than normal in the city of Boise but fast by historical standards, with even some million-dollar properties attracting multiple offers.

While the drop in rates has attracted new buyers, uncertainty about the upcoming elections has kept some waiting, adding to others who hope mortgage rates will drop a bit more. Overall, lower interest rates bring more buyers into the real estate market, leading to higher home prices. And if mortgage rates fall below the 6% threshold, there could undoubtedly be a strong increase in demand, causing prices to rise even further.

If mortgage rates continue to fall, the rest of the fourth quarter could unfold very similarly to last year, with a gradual slowdown in demand until November, followed by a significant rebound in activity as December approaches.

Available Foreclosures:

Boise: 120 homes available.

Canyon County: 100 homes available.

By Elías DaSilva | 23 de octubre de 2024.