Why Boise’s Housing Market Feels Like “Molasses”

https://boise.citycast.fm/podcasts/why-fewer-homes-are-selling-in-boise

A Market Stuck in Slow Motion

The Boise housing market has slowed dramatically, with fewer home sales in the past three years than even during the 2008 housing crash. Local real estate expert Michael Miller, co-founder of Home Found Realty Group, summed it up in one word: “Molasses.” Buyers have plenty of options, but sellers face sluggish showings and frequent lowball offers, leaving many Boise homes for sale sitting on the market longer than expected.

Interest Rates and Buyer Hesitation

High mortgage rates—hovering around 7% for much of 2024 and 2025—have pushed many first-time homebuyers in Boise out of the market. A $400,000 home with a minimal down payment translates into a $3,000 monthly mortgage, making renting in Boise nearly half the cost. While interest rate cuts may soon bring mortgage rates below 6%, uncertainty in the national economy has many buyers waiting before committing to Boise real estate.

Sellers Holding Out, Buyers Pushing Back

Right now, Boise real estate feels like a standoff. Sellers, especially those with strong equity, are holding firm on prices, while buyers are demanding steep concessions—sometimes $50,000–$100,000 off asking—or walking away after inspections. With about 20% of homes in the Treasure Valley dropping price each week, Boise homeowners looking to sell are under pressure to stand out in a crowded market.

Competition From New Construction

New construction in Boise is creating more competition for existing homes. Builders are offering incentives like $25,000 credits to buy down interest rates, making brand-new homes more appealing to buyers. This shift is forcing traditional sellers in Ada County and beyond to rethink their pricing and marketing strategies.

Affordability and the Bigger Picture

Even with price drops, experts don’t expect Boise home prices to collapse like they did during the last housing crisis. Most homeowners have significant equity, and foreclosures remain rare. Boise continues to show strong fundamentals, leading the nation in job and wage growth since 2020, and the city is poised to see more demand as millennials enter their prime homebuying years.

What It Means for Buyers and Sellers

For Boise home sellers, the key is flexibility—either wait for the market to rebound or price aggressively now to attract offers. For buyers, this is one of the best chances in years to negotiate on Boise houses for sale. With inventory high and sellers willing to give concessions, buyers have more leverage than they’ve had in over a decade.

The Local Outlook

While slower than recent years, Boise real estate remains more stable compared to many U.S. markets. As Miller notes, beyond mortgage rates and market stats, lifestyle is what keeps people moving to Boise. The city continues to offer safe neighborhoods, a thriving community, and a high quality of life—factors that ensure long-term demand for Boise homes.

Michael Miller
FOUNDER, CEO & REALTOR®
[email protected]
208-600-2333