October 2024 Boise Housing Market Update: What Rising Mortgage Rates Mean for Buyers and Sellers

If you’re keeping an eye on the Boise housing market this fall, you’ve probably noticed something big happening—mortgage rates are spiking. This October, rates have jumped, creating a lot of buzz among homebuyers and sellers. But why is this happening, and what does it mean for the housing market in Ada and Canyon Counties?

 

In this October 2024 Boise housing market update, we’ll break down what’s behind these rising mortgage rates, how they’re affecting home prices, and what you should do whether you’re thinking about buying or selling.

 

 

October is historically a month when mortgage rates tend to rise, and this year is no exception. Despite the Federal Reserve lowering interest rates by half a percent, mortgage rates have surged. This is largely because the bond market is reacting to increasing Federal debt levels as the government approaches year-end budget deadlines. Federal departments are rushing to spend their remaining budgets, which often creates volatility in financial markets, driving rates higher.

 

While this rise in rates is making it more challenging for buyers, there’s hope on the horizon. Historically, mortgage rates tend to drop again in December as the market calms down, which may present an opportunity for buyers to secure a lower rate.

 

 

In Ada County, the housing market continues to show resilience despite rising rates. Here’s a breakdown of the key stats for September 2024:

 

In Canyon County, the market is moving at a slower pace compared to Ada County:

 

Rising mortgage rates are shrinking what many buyers can afford, especially as we head into the holiday season. This rapid rate increase means that monthly mortgage payments are higher, which limits buying power. However, if history repeats itself, we could see rates dip again in December, providing some relief for buyers willing to wait.

 

That said, waiting comes with its own risks. Inventory typically decreases in the winter months, meaning there may be fewer homes to choose from. So, if you find a home that meets your needs now, it may be worth locking in a deal, even with the higher rates.

 

 

In the current market, new construction homes are offering significant advantages over resale homes. Builders are providing incentives such as mortgage rate buy-downs, closing cost coverage, and even free upgrades to attract buyers. These incentives can make new homes more appealing, especially when mortgage rates are high.

Resale homes, on the other hand, are moving slower. Many sellers are overpricing their homes, which is causing them to sit on the market longer. If you’re looking at a resale home, this gives you more room to negotiate, especially if the home has been on the market for a while​​.

 

Despite the rising rates and increased inventory, well-priced homes in desirable neighborhoods are still selling quickly. Homes in areas like Meridian, Eagle, and Star that are priced competitively are attracting multiple offers​​.

For buyers, this means it’s important to act quickly if you find a home that’s priced right. For sellers, it’s crucial to price your home accurately to attract serious buyers, especially as the market cools down into winter.

 

 

Looking ahead, we expect to see a typical seasonal slowdown as we move into November and December. Inventory is likely to drop, which could create more competition among buyers for available homes. At the same time, prices may flatten or even dip slightly as the market cools, which could benefit buyers who are patient.

For sellers, this means homes may take longer to sell, and pricing will need to be competitive to attract buyers in a slower market. If you’re thinking about selling, now is the time to work with an experienced agent who understands the current market dynamics and can help you price your home effectively.

 

 

If you’re considering buying or selling a home in Boise or the surrounding areas, the current market conditions present both challenges and opportunities. Rising mortgage rates are making it harder for buyers, but new construction homes with incentives and well-priced resale homes are still attracting interest. Sellers need to be realistic about pricing, as overpriced homes are sitting on the market longer.

 

The good news? You don’t have to navigate this market alone. As someone who specializes in both new construction and resale homes, I’m here to help you understand the market, whether you’re buying, selling, or just thinking about your next move.

 

If you have any questions or want to discuss your real estate goals, feel free to reach out. I’d love to help you make the best decision in today’s ever-changing market.

 

Curtis Chism
eXp Realty
(208) 510-0427
curtis@chismteam.com