If you're considering buying or selling a home in Boise, you're probably wondering: What’s next for interest rates? Will home prices go up or down? And how will the new administration impact real estate? Let’s break it down so you can make smart moves in 2025.
Interest Rates: What to Expect
After the wild swings we’ve seen in the past few years, experts predict interest rates could remain steady—or even drop slightly if inflation cools. But here’s the catch: even a half-percent change can impact your buying power by thousands of dollars over the life of a loan.
If rates drop, expect more buyers jumping in, which could push home prices up again. If rates stay high, buyers may have more negotiating power. Either way, waiting it out isn’t always the best strategy. If you find the right home, buying now and refinancing later could be a smart move.
Recent Federal Actions Impacting Housing
The current administration has taken several steps that could impact the housing market nationwide, including right here in Boise:
Government Real Estate Downsizing: In January 2025, the federal government announced plans to reduce its real estate footprint, selling off many government-owned office properties. This move could revitalize older buildings, potentially leading to more residential conversions and increased housing supply in urban areas.
Federal Spending Freeze: A spending freeze has been implemented, affecting grants and loans to local governments, hospitals, schools, and businesses. While essential programs like Social Security and Medicare remain intact, this could slow down federally funded infrastructure projects that impact housing markets. Legal challenges are expected as states and organizations push back.
Multi-Unit Housing & Broadband: The FCC recently abandoned a proposal that would have banned “bulk billing” for broadband internet in apartment buildings and condominiums. This decision keeps the current model in place, which may affect internet costs for those living in multi-unit housing.
Multi-Unit Housing & Broadband: The FCC recently abandoned a proposal that would have banned “bulk billing” for broadband internet in apartment buildings and condominiums. This decision keeps the current model in place, which may affect internet costs for those living in multi-unit housing.
Boise Housing Market Update
Boise has been a hotspot for real estate over the past few years. Here’s where we stand now:
The median home value in Boise is approximately $482,666, reflecting a 3.1% increase over the past year.
Inventory levels have improved from pandemic lows, but the Boise metro area currently has about a two-month supply of homes for sale, slightly below the national average.
Given current conditions, Boise home prices are likely to continue rising in 2025, though the pace may slow depending on interest rate trends and inventory levels.
The federal government’s plan to reduce its real estate holdings could lead to the repurposing of office spaces into residential units, potentially increasing housing availability. However, the spending freeze might slow down community development projects that rely on federal funding.
What Does This Mean for Buyers & Sellers?
For buyers, now is the time to watch interest rate trends closely. More housing supply could lead to new opportunities, but if rates drop, competition could heat up quickly.
For sellers, pricing your home correctly will be key. With inventory still relatively low, well-priced homes in desirable areas will continue to move. However, increased housing availability could introduce more competition in the future.
The Boise market is evolving, and staying informed is the best way to navigate these changes. Whether you're buying, selling, or just exploring your options, let's chat and create a strategy that works for you!
If you found this helpful, reach out with your questions or share this with someone who’s thinking about making a move in 2025. Let’s make informed real estate decisions together!
Comments