Home prices in the Boise area continue to fall drastically from their historic high valuations. The days of no inspections and multiple offers are over, thanks to Joe Biden's escalating interest rates. The Boise area mortgage business is tanking because no one wants to buy a home at seven or eight percent interest rates. The Boise Area Realtors reported that for the first time since Barrack Obama was president in 2014, that home prices in our area have dropped. In November, the median sales price of homes sold was $525,000, 2.5% lower than in November 2021 and 6.5% less than in October 2022.

Not Everyone Is Hurting

Realtors tell us that folks with all cash offers are cleaning up in the Boise market. Due to rising interest rates, home prices have dropped due to more homes on the market. Realtors tell us that if you don't have to borrow money, the deals are there for you in the Boise area. Home prices have fallen by over $100,000 for some area homes.

Multi-million dollar homes are still selling, although not at the speed of the pandemic years. Realtors with a 'California Pipeline' continue to make big sales. Cash is king in the Boise area market now more than ever.

Here's an example of multi-million dollar homes currently on the market.

What's Next For the Boise Area Market?

Experts tell us homes will be on the market longer than in previous years. The market has flipped from a seller's to a buyer's market. Realistically did anyone believe that the appreciation of their home was genuine?

Who Is Buying Boise Area Homes?

The folks buying homes are either remote workers or retirees. Both groups have access to cash on hand that allows them to avoid the Joe Biden interest rates.

What about renters?

The price of rent continues to climb in our area. Landlords tell us that they must continue to raise rents to keep up with the state's unfair property taxes. Ten years ago, Idaho home prices were much more in line with the economic output of the workforce. Today, may are finding that they must work two or three jobs to work to afford the dream of home ownership in Idaho.