Boise Housing Market Predictions for 2025: What to Expect

As we head into 2025, Boise’s housing market continues to look more resilient, shaped by rising inventory, fluctuating mortgage rates, and cautious optimism. Here's a quick look at what to expect in the coming year.

1. Inventory Will Increase, But Not Enough for a True "Buyer's Market"

Inventory has risen by 16% in 2024, with 2,568 homes for sale in Ada County by December, still favoring sellers. While more options will be available for buyers in 2025, a 65% increase in supply is needed to reach a balanced market. Expect demand to outpace supply, keeping prices steady but elevated.

2. Mortgage Rates Will Impact Buyer Demand

Mortgage rates, hovering around 6.81% in late 2024, will remain a key factor. If rates dip slightly, buyer activity could rise, but if they surpass 7%, demand may slow. This inconsistency in rates will continue to affect affordability and market dynamics.

3. Price Growth Will Slow, but Remain Above Pre-Pandemic Levels

Boise’s median home price reached $525,000 in November 2024, up 6.1% year-over-year. While price growth may slow due to rising inventory and economic uncertainty, Boise’s market should stay strong. Prices may adjust slightly, but will likely remain above pre-pandemic levels due to limited inventory and ongoing population growth.

4. Affordability Will Remain a Challenge

Despite some slowing on prices from pandemic highs, home prices in Boise are still challenging for many buyers. With mortgage rates around 6% and prices at elevated levels, affordability will be tough in 2025. Rising local incomes may help, but the "lock-in effect" will continue to prevent many homeowners from selling.

5. Affordable Homes Will Be in High Demand

Buyers are increasingly looking for more affordable options, particularly in Ada County’s suburban areas. Areas like Nampa, Caldwell, and Meridian, where home prices are lower, will see strong demand in 2025. If inventory increases in these areas, expect stronger sales and price growth.

6. A Strong Start to 2025

With mortgage rates around 6% and increasing buyer interest, the Boise market should see a busy start to 2025. As more inventory comes online, we can expect a balanced market where both buyers and sellers have opportunities, despite some potential economic cooling.

Conclusion

Boise’s housing market in 2025 will remain competitive, with rising inventory and fluctuating mortgage rates shaping the landscape. Buyers should be prepared for modest price increases and rate changes, while sellers will benefit from sustained demand. Affordability will remain a key issue, but the market is poised for another active year. Staying informed and ready to act quickly will be crucial for anyone looking to buy or sell in Boise.

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