Treasure Valley Leads the Nation in Soaring Housing Prices

I bought a home five years ago in Meridian and today I’ve gained nearly $200,000 in equity. You’re sitting pretty too if you “own” a home and bought into the Boise area before the big boom, but for young or first time buyers it’s pretty tough to grab a piece of land these days.

According to an article in Forbes, Boise housing price increases are leading the way in the United States. The average home in the U.S. currently sits at $262,204, while in Boise the average home is priced just over $400,000. Since 1991, home prices have increased 391%, which is one of the largest increases in the country.

At the end of the day, it’s all about supply and demand. As droves of people continue to move into the Treasure Valley, homes are tougher to find, driving prices up.

So, will Boise’s hot housing prices last forever? Experts say no. It will take time to rebuild inventory, but things may slow down by next fall.

As exciting as it can feel to be sitting on a lot of equity, I try to stay level headed by focusing on how much I owe on my mortgage rather than what my home is currently worth. The only way you benefit from all that equity is to move somewhere cheaper, which is harder to find these days, or by taking a risk and selling while the market is hot and then waiting for prices to hopefully come down.

If you’re feeling discouraged by the soaring prices in housing (rent included), try to hang in there. Hopefully, it will become a little more affordable to buy a piece of Boise in the future.