Are House Prices Dropping in Boise, ID?

Are Housing Prices Dropping in Boise, ID? A 2025 Market Deep Dive

If you’re wondering, “Are housing prices dropping in Boise?” — you’re not alone. In today’s shifting real estate landscape, Boise (and the broader Treasure Valley) is showing signs of evolution, not collapse. Below, we break down the data, trends, and expert forecasts so that buyers, sellers, or curious locals can see what’s really happening in Boise’s housing market in 2025.

Current State: Boise Home Prices Are Mostly Holding Steady or Up Slightly

Contrary to dramatic headlines about crashing markets, Boise has not experienced a widespread, steep drop in home prices. In fact:

• Zillow reports that as of April 2025, the average Boise home value is around $504,848, up 1.9% over the past year. 

• The Federal Housing Finance Agency’s All-Transactions House Price Index (Boise MSA) edged from Q1 to Q2 2025 from ~497.96 to 497.78 — a slight decline in that quarterly index. So overall, prices are not crashing — but they are stabilizing, with small fluctuations.

Why Some Buyers Feel Like Prices Are Dropping

Perception often lags behind data. Here are some contributing reasons why some feel housing prices are dropping in Boise:

1. Higher Inventory & More Options
   Many areas in the Treasure Valley are seeing more homes on the market, giving buyers more leverage. 

2. Longer Days on Market / Slower Pace
   In certain submarkets, homes are staying on the market a bit longer, meaning sellers may need to reduce price or negotiate more. 

3. Regional Corrections After Big Runs
   Boise experienced rapid growth in home value in 2020–2022 (increases of 30–40% in some periods).
   Some of what looks like “price drops” is simply a cooling or pullback from overheated levels.

4. Mortgage Rate Pressure
   Elevated mortgage rates (often in the high-5% to 6%+ range) reduce buyer affordability, damping demand and reducing upward pressure. 

5. Seasonal and Localized Effects
   Some neighborhoods or “luxury segments” may see small dips while the general market remains firm.

Thus, while there is no full-blown crash, parts of the Boise market are adjusting, and sellers no longer have the runaway momentum of prior years.

What the Data Suggests: Are Prices Dropping in Boise?

Let’s break it down:

From this, we conclude: no, housing prices in Boise are not generally dropping sharply, but they are entering a more balanced phase with slower growth, occasional dips in certain segments, and more negotiation room for buyers.

What’s Driving the Shift — and What to Watch For

Several factors are influencing this more moderate housing climate:

• Inventory Constraints: Idaho still faces low inventory across much of the state. Many counties, including Ada, have inventories well under six months, which keeps upward pressure on home prices.

• Land & Construction Costs: Rising land costs, regulatory hurdles, and supply chain constraints slow new housing growth — limiting supply increases. 

• Demand from Relocation & Tech: Boise remains attractive for tech workers and remote professionals relocating from higher-cost regions. 

• Macro‐economic Factors: Inflation, interest rates, and broader national real estate trends play a role. Zillow and others predict small price declines nationwide later in 2025. 

If any of the following happen, we might see more pronounced downward pressure:

• Significant interest rate hikes

• Economic recession or job losses in Boise area

• Surge in new building supply

• Sudden drop in migration inflows

What This Means for Buyers & Sellers in Boise

For Buyers:

• You probably won’t see steep discounts across the board — but you do have more negotiation leverage than in the heat of 2021–22.

• Watch local submarkets: you may find softer pricing in overbuilt neighborhoods or higher-price tiers.

• Bring preapproval and be ready to act when listings soften.

• Consider locking in a purchase if your analysis suggests rates or prices may rise again.

For Sellers:

• You may no longer see “over-ask” bidding wars everywhere.

• Pricing competitively is more important today to attract interest.

• Prepare for longer marketing time and possible concessions.

• In many cases, you may still see modest year-over-year gains — but don’t expect runaway doubling in short time frames like earlier years.

Final Verdict: Are Housing Prices Dropping in Boise?

The short answer: No — not in a sweeping, dramatic way. Instead, Boise’s housing market is shifting from hyper-acceleration to a more balanced, mature state. There’s softening in certain segments, slight quarterly dips in indices, and more negotiation room — especially compared to the frenzied growth of the past few years.

But the broader trend remains one of slow appreciation, not collapse. Forecasts point toward modest gains of 2–4% annually for the foreseeable future. 

If you're trying to time your move, the window is more favorable now than in previous years — but waiting for huge “drops” may mean missing out on steady long-term growth.

Give Kim Dobias a call or text at 208-917-3494 to help you on your next move!