2025 Treasure Valley Housing Market Trends and What’s Next
As we look back on the 2025 housing market, there are some trends that shaped the year and give us a glimpse into what we can expect in 2026 for home buyers and sellers.
Continued Gains in Housing Inventory
December 2025 marked 23 consecutive months of year-over-year gains in housing supply for both Ada and Canyon County, with the majority of months experiencing double digit gains. After nearly two years of inventory growth, buyers have more options available than in recent years. In December, there were 2,522 listed homes in both Ada and Canyon County — 338 more than in December 2024.
New Construction Bolsters Housing Options for Buyers
Builders continue to add needed housing supply to our local market. According to research from REALTOR.com, Idaho led the nation in new home inventory, with Ada and Canyon County outpacing the 40% average for the state.
In 2025, new homes made up an average of 44.5% of monthly available inventory in Ada County and nearly half (49.0%) in Canyon County. Buyers saw value in new homes and incentives with new construction sales claiming a monthly average share of 33.2% in Ada and 43.8% in Canyon.
Uptick in Sales Activity
After a significant slump in sales in 2023, home sales are recovering to more historically normal levels. In 2025, there were 8,987 sales in Ada County, surpassing 2022-2024 in the number of annual transactions. It was the same story in Canyon County where home sales totaled 5,024, the highest annual number of sales since 2021.
Year-Over-Year Home Prices Increase Slightly
Taking all of the home sales in 2025 into consideration, the year-to-date median sales price was $555,000 in Ada County and $425,000 in Canyon County. This was an increase of 2.4% for both counties, indicating a slower, healthier, price appreciation than we’ve seen in the past decade. After rapid appreciation in 2018-2022, home prices adjusted down in 2023 after the 30-year fixed rate mortgage average jumped near the 7.0% handle. Since then, home prices have grown at a more sustainable rate, keeping value for sellers and avoiding the double-digit price growth for buyers that occurred in 2018-2022.
Data from the Intermountain MLS. Includes sales activity for single-family and single-family with acreage properties for the dates noted, as reported to the MLS.
Buyer Conditions Improve
As inventory has grown, it’s slowed and further normalized the pace of the market. In 2025, the year-to-date average days on market was 43 days in Ada County and 52 days in Canyon County. Buyers held onto their negotiation power in 2025, securing homes for an average of 2.2% less than the original list price in Ada County and 2.3% less in Canyon County. The difference in the original list price to the sales price can occur through price drops, concessions or negotiations.
Looking Ahead
We expect the trends we’ve noted in 2025 of increased inventory and slower price appreciation to continue into 2026, giving buyers an improved outlook with more negotiation power, options, and a less competitive and frantic market.
Mortgage interest rates continue to be a determining factor in affordability, buyer demand and movement in the market, so we asked Steve Cox, Originating Branch Manager and Team Lead for the Steve Cox Team at CrossCountry Mortgage, what mortgage professionals are expecting to see with rates in the coming year:
“From an interest‑rate standpoint, a few things are moving in the right direction. The Federal Reserve could shift toward a less restrictive approach, and recent changes in the mortgage market may help bring long‑term rates down over time. That matters because even small improvements in rates can make a real difference in monthly payments.
We’re also seeing early signs that housing costs like rents are coming down, which is important because those costs feed directly into inflation—and inflation plays a big role in where rates go next.
No one can predict rates perfectly, but when you look at all of these trends together, it suggests that the buying environment in 2026 could be more balanced, more predictable, and more favorable for buyers than what we’ve experienced in the past few years.” If you’re considering making a home purchase, connect with a trusted lending professional to learn more about the various mortgage products available and what may work best for your unique circumstances.
Market conditions are improving for buyers, but what does this mean for potential sellers? Lower mortgage rates will spur buyer demand, resulting in more home sales. With more listings on the market, it’s important to make sure your home stands out with competitive pricing, necessary repairs and/or improvements and having it shine with strategic staging and decluttering. If you’re considering listing in the spring, engage with your real estate agent early and lean on their market expertise to develop a plan that helps you achieve your goals.
Ready to make a move? A proven real estate agent will negotiate on your behalf, address the potential hurdles to a transaction, and utilize their industry knowledge and connections to get the job done. The Agency Boise is made up of a select group of driven agents that have deep roots in the community, local expertise, and are backed with a regional and global reach. Who you work with, matters.
Other notable metrics:
In Ada County in December,
Buyers had 1,596 available homes to choose from in December — 321 more than in December 2024.
There were 901 pending sales, or homes under contract, in December, up 1.0% compared to a year ago.
With 691 sales for the county, there were 3 more closings in December than the same month a year ago.
The median sales price for homes that closed last month was $525,000, about $5,000 less than in December 2024.
The average percent of the original list price received for homes that closed in December was 97.4%, meaning that on average, buyers paid 2.6% less than the price for which the home was originally listed.
Months supply of inventory was 2.2 months in December, 15.1% higher than in December 2024. Months supply is calculated by dividing the current inventory by the average sales from the last 12 months and indicates how long current inventory would last if no new listings were added. A balanced market, not favoring buyers or sellers, is typically considered 4-6 months of supply.
The most popular price range for home sales was $450,000-$600,000 with 244 sales, approximately a third of all home sales for the county. Of those, the average days on market before going under contract was 61 days and the average percent of original list price received was 97.5%.
As of December 9, 2025, the list price range with the most inventory was $450,000-$600,000 with 500 listed homes, about a third of all listed homes for the county. Of those, the average days they’ve spent on the market so far is 79 days. Those listed homes have undergone an average of a 2.5% price drop from the original listing price.
In Canyon County in December,
With 926 active listings in December, inventory was up 1.9% year-over-year, giving buyers 17 more listings to choose from compared to a year ago. New homes made up over half of all available homes for sale.
There were 484 pending sales in December 2025, down 8.2% when compared to the same month a year ago.
With 430 sales last month, closings were up 15.0% compared to December 2024.
The median sales price for December home sales was $435,000, about $26,000 more than in December 2024 and $10,000 higher than the month prior.
The average percent of the original list price received for homes that closed in December was 96.8%, meaning that on average, buyers paid 3.2% less than the price for which the home was originally listed.
Months supply of inventory was at 2.2 months in December, down 3.7% from the same month last year. Months supply is calculated by dividing the current inventory by the average sales from the last 12 months and indicates how long current inventory would last if no new listings were added. A balanced market, not favoring buyers or sellers, is typically considered 4-6 months of supply.
The most popular price range for home sales was $300,000-$450,000 with 220 sales, over half of all home sales for the county. Of those, the average days on market before going under contract was 58 days and the average percent of original list price received was 96.5%.
As of December 9, 2025, the list price range with the most inventory was $300,000-$450,000 with 433 listed homes. Of those, the average days they’ve spent on the market so far is 62 days. Those listed homes have undergone an average of a 1.5% price drop from the original listing price.
2025 Year End Statistics
In Ada County,
There were 8,987 closed sales in 2025, an increase of 7.4% or 623 more than in 2024.
Ada County homes appreciated an average of 2.4% in 2025. The year-to-date median sales price for homes that closed in 2025 was $555,000, an increase of 2.4% or approximately $13,000 more than in 2024.
The average days on market for sales activity in 2025 was 43 days, one day longer than in 2024.
Total year-to-date dollar volume for sales of single family and single family homes with acreage in 2025 was approximately 6 billion dollars.
In Canyon County,
There were 5,024 closed sales in 2025, an increase of 4.2% compared to 2024.
Canyon County homes appreciated an average of 2.4% in 2025. The year-to-date median sales price for homes that closed in 2025 was $425,000 about $10,000 more than in 2024.
The average days on market for sales activity in 2025 was 52 days, two days longer than in 2024.
Total year-to-date dollar volume for sales of single family and single family homes with acreage in 2025 was approximately 2.5 billion dollars.
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