Looking back on the fourth quarter of 2024; the election, stubborn inflation and mortgage rates rising from 6 to 7%, it's no surprise that real estate activity was very low in SW Idaho. However, on a year-over-year basis home prices are still trending upward since the last major event- the doubling of interest rates in 2022.
Ada County's median existing home price of $529,450 was down a meager 0.94% for the fourth quarter of 2024. It has been a mild winter, but that is much less than the 3% and 4.8% drops in the two previous fourth quarters. Looking at the year-over-year change negates the seasonal variations and Ada County prices are up 3.81% from a year ago.
Canyon County's median of $385,000 is down 3.73% for the quarter, a slightly larger drop that the 2.8% drop in the previous fourth quarter. Year-over-year prices were only up 1.3%, compared to a 3.1% gain the previous year. Why so much flatter than Ada? Affordability is my guess and supply levels have been higher here since July.
What does the future hold? I expect local home prices to continue rising moderately this year due to continued low supply levels. Both Ada & Canyon Counties are slowly trending upward in supply levels, but today have only 7-week supplies of homes based on the pace of sales and that's including new construction. Supply would have to double/triple before prices go flat.
For monthly updates and a more in-depth analysis on the Boise Metro housing markets see my Market Monitor on my website.