First-time home buyers and those who are looking to move up to a slightly more expensive home will face a tough spring season. That’s according to Zillow, which found that inventory is declining fastest among entry-level and mid-market homes in more than half of the largest U.S. markets, including Boise.
Overall, the number of available homes for sale nationally fell 5.9 percent in March from a year earlier. But supply declined by a disproportionately large 10.4 percent in both the low-end and middle-priced ranges. Inventory ebbed just 1.9 percent in the most-expensive segment.
Boise saw a 38.9 percent drop in home inventory below $160,000 in April from a year earlier. That’s the price range considered entry-level in the Treasure Valley. In the same time period, there was a declined of 48.6 percent in Ada County, 44.6 percent in Nampa and 42 percent in Canyon County overall, according to Boise Regional Realtors.
“For homes in the $159,999 and below price range, generally considered the first-time home buyer price range, there is less than two months of inventory on hand in both Ada and Canyon County,” BRR President Carey Farmer said in a statement. “A balanced market is typically between four and six months of inventory.”
In the last week of April, Boise had 37 homes available below $160,000, far fewer than the 91 available at the same time last year, or the 149 on the market in 2014 and 278 in 2013. Nampa had 89 sub-$160,000 homes available, drops from 160, 289 and 390 in the three prior closing weeks of April, BRR reported.
Homes listed for less than $160,000 right now make up only 5 percent of the overall Boise housing market, a contrast with the 11.7 percent, 16.5 percent and 27.7 percent in 2015, 2014 and 2013, respectively. This price range only accounted for 23.1 percent of Nampa homes on the market, a considerable shift from 33.7 percent, 49.2 percent and 59.5 percent in the prior years.