Boise Real Estate Market Update – August 2025 Inventory Up 28% YOY

Inventory Surges, Closings Decline, and Rates Open a New Window for Buyers

The July numbers are in, and they paint a very clear picture: the Boise housing market is shifting and fast.

📈 Inventory Climbs Despite Industry Predictions

Active listings in Ada County jumped to 1,363, a 3.5% increase month-over-month and a 28% spike year-over-year. This came as no surprise to us, even though many voices in the industry claimed inventory was dropping. It’s not. In fact, it’s trending upward.

But why does that matter?

Because more inventory without a corresponding increase in demand means sellers need to rethink their strategy. It’s not enough to “list and hope” anymore. Price, positioning, and negotiation skills now make the difference between selling and sitting.

🔄 Pending Sales Up Slightly, Closings Down Sharply

Pending sales showed a modest 8.9% year-over-year increase, moving from 589 to 641. However, closed units fell 10.5% month-over-month from 637 to 571.

This drop likely reflects some combination of fallout, buyers becoming more selective, and agents who aren’t effectively guiding sellers through pricing and expectation shifts. When buyer activity stalls in a rising inventory environment, homes sit longer, and frustration builds for both sellers and agents.

💸 Mortgage Rates Hit a 10-Month Low

In better news: mortgage rates are dropping, now sitting between 6.5% and 6.7%, the lowest we’ve seen in nearly a year. That’s huge for buyers.

Just a small drop in rates can significantly increase buying power. For example, a buyer with a $3,000 monthly budget now has $20,000 more in purchasing power than they did just weeks ago.

If you’re a buyer who paused your search due to rates, it’s time to re-engage.

💡 Sellers: Strategic Pricing Matters More Than Ever

The average asking price is $781,000, but the average sold price is only $614,000, a gap of more than $165,000. This isn’t just bad luck. It’s a reflection of unrealistic expectations, poor guidance, and agents who are afraid to tell the truth.

With 2.7 months of supply on the market and nearly 10 months of supply for homes over $2M, sellers who overprice are likely to sit. Sellers working with experienced, full-time agents are gaining the edge by understanding market nuances and leveraging tools like rate buy-downs and strategic incentives.

👇 Here’s What to Do Next

• Buyers: This is your shot. Lower rates and more inventory mean more choices and better deals.
  
• Sellers: If your home didn’t sell earlier this year, now is the time to reprice, relist, and get in front of the right buyers.
  
• Agents: Pick up the phone. Rates dropped, and buyers need to hear it from you—not Zillow.

At City Trees Real Estate, we’re on pace to close 400 homes this year. That volume means we see market shifts in real time and we act on them before others do.

📩 Want hyper-local market data down to your ZIP code or neighborhood? Reach out to your City Trees agent and ask for the “Market Dynamics Report.” We have data for every major area Northwest Meridian, Eagle, Star, new construction, and more.