One of the biggest headlines from the Boise real estate market this month is inventory.
Since January 2026, active listings have increased from 692 to 1,080, a 56% increase. Normally, when inventory rises that quickly, many people expect home prices to start dropping.
But that’s not what’s happening.
Home prices across the Boise area have remained relatively flat year over year, leaving many buyers and sellers wondering what’s keeping the market so stable.
Buyers Are Absorbing New Inventory
The biggest reason prices haven’t fallen is demand.
While inventory has increased significantly, buyers have continued to absorb a large portion of those new listings.
Consider these numbers:
- 784 homes went pending in April
- 760 homes went pending in May
- Home prices have remained relatively stable
- Inventory continues to grow, but demand remains strong
Simply put, buyers are still active in today’s market.
Interest Rates Are Becoming the New Normal
For the past few years, many buyers have been waiting for mortgage rates to drop significantly before making a move.
Now, it appears many have accepted that today’s rates are simply part of the market.
People still need to move for life events such as:
- Marriage
- Growing families
- Job changes
- Relocations
- Downsizing
- Divorce
- Retirement
Life doesn’t stop because rates are higher than they were in 2021.
As a result, more buyers and sellers are moving forward with their plans rather than waiting on the sidelines.
Two Different Markets Are Emerging
One of the most important trends right now is that Boise is not operating as one single market.
Homes Under $800,000
Inventory remains tight.
- Less than 2.5 months of supply
- Well-priced homes continue to sell quickly
- Multiple-offer situations are still occurring
- Buyers may face competition for desirable properties
For sellers in this range, the market remains favorable if the home is priced correctly and marketed effectively.
Luxury Homes Above $2.5 Million
The luxury market tells a very different story.
- Approximately 8.7 months of supply
- Longer selling timelines
- More buyer negotiating power
- Greater competition among sellers
For luxury buyers, there are more opportunities and more room for negotiation than in lower price ranges.
Is the Market Starting to Shift?
There is one trend worth watching closely.
Inventory increased month over month, while pending sales declined slightly from April to May.
It’s too early to call it a major shift, but it could be the first sign that supply is beginning to outpace demand.
Whether this develops into a larger trend will become clearer over the next several months.
What This Means for Buyers and Sellers
For buyers:
- There are more choices available than there were earlier this year.
- Competition still exists for well-priced homes under $800,000.
- Having a knowledgeable agent can help you identify both listed and off-market opportunities.
For sellers:
- Demand remains healthy.
- Proper pricing is critical.
- Well-marketed homes continue to attract strong interest.
The Boise market isn’t experiencing a major correction. Instead, it appears to be settling into a more balanced and sustainable environment.
Looking Ahead
As we move into the second half of 2026, all eyes will be on inventory growth and buyer demand.
If demand continues to keep pace with new listings, prices may remain stable. If inventory continues rising while pendings slow further, we could begin to see a more noticeable shift in market conditions.
For now, the story remains surprisingly simple:
Inventory is up 56%, but buyer demand is keeping the Boise market remarkably resilient.
Interested in what these numbers mean for your specific neighborhood, city, or price point? Reach out to a City of Trees Real Estate agent for a customized market analysis.
And if you’d like the full breakdown, be sure to watch our latest Boise Market Update on YouTube and subscribe for monthly market insights. Follow @iHeartCityOfTrees for more Boise real estate news, facts, and local updates.
