Boise EOY Market Update January 2023
Posted On: 2023-01-17 16:34:14.92
Ada County homes:
No surprise here, home prices in the Boise area are down. But the average home is only down by about 5.5%. Sure seems like prices have been hit harder than than that. That’s because prices for single family homes in the Boise area have actually dropped by almost 15% from the peak, which was May of 2022, and that’s what most look at.
We can see the lower home prices, but I believe that there are two factors that makes the market seem worse than perhaps it really is. 1). Current inventory levels are about 150% higher than what they were a year ago. 2). It’s taking nearly 2 months to find a buyer and another month to close, so we have the visual of for sale signs sitting in yards a lot longer. Two months isn’t really that bad, but it seems like eternity after seeing several years of receiving multiple offers within days of hitting the market.
Multi-family hasn’t been hit as hard. Duplexes and tri-plexes seem to be have been hit the hardest within the multi-family residiential income segment, but its been my experience that duplexes and tri-plexes seem to more closely follow the single family home market.
Fourplexes are doing well. In the 2nd graph below, is our Ada County fourplex metrics. Cap rats are on a slow upward trend and the gross rent multiplier is declining. So these fourplex prices are being effected, but it’s slow and steady. Unlike the single family homes, the fourplex market is not currently saturated with listings.
And perhaps apartments are holding up the best. We are just not seeing many on the market.