Idaho Housing Market Update September 2025 – Ada & Canyon County

🏡 Idaho Housing Market Update: September 2025 - Ada & Canyon County

A Realistic Look at Fall's Market Trends

In our Idaho housing market update September 2025, we're seeing the Treasure Valley shift toward a balanced, more sustainable pace. Prices are steady, listings are climbing, and mortgage rates are easing just in time for fall buyers.

This isn't bad news - it's just a shift. After years of frenzy, both buyers and sellers are finally getting a breather.

Let's dive into the details for Ada and Canyon Counties.

Ada County: Strong Prices, Longer Sales Cycles

Ada County saw 782 single-family home sales in September - up 9.5% from last year - showing that demand remains alive even as affordability challenges linger.

Here's what stood out:

• Median Price: $555,000 (up 3.3% YoY)

• Average Price: $680,866 (up 7.8%)

• Days on Market: 44 (flat month-to-month)

• Total Dollar Volume: up 18% from last year

• New Construction: up 12%, with an average price near $689K

The trend? Homes are selling, but buyers are cautious. Sellers who price realistically and invest in curb appeal or small improvements are still seeing success. Neighborhoods like Meridian, Kuna, and Star continue to show healthy demand, especially for homes under $600,000.

Luxury and higher-priced segments (above $900K), however, are seeing longer wait times and more negotiation.

Canyon County: Slower Sales, Stable Pricing

In Canyon County, the pace eased slightly, but prices remain impressively stable considering the broader cooling.

• Homes Sold: 418 (down 2.6%)

• Median Price: $421,944 (down just 0.7%)

• Average Price: $491,037 (up 1%)

• Days on Market: 57 (up from 50)

• New Construction: up 3.8%, with a median price of $454,881

Cities like Nampa, Caldwell, and Middleton continue to attract first-time buyers and those priced out of Ada County. Builders are again leaning on rate buydowns, upgrades, or closing cost incentives to keep deals flowing - a clear sign that buyers are rate-sensitive but still eager when the math works.

💰 Mortgage Rates & Affordability: The 2025 Balancing Act

Mortgage rates have been the biggest driver of Idaho's housing mood this year - and they're finally starting to shift in a buyer-friendly direction.

• The national average 30-year fixed rate recently dropped to around 6.30%.

• Idaho's current average sits just under 6%, roughly 5.99%, depending on credit and program type.

• Earlier this summer, rates were hovering between 6.7% and 7%, so this dip has created breathing room for buyers.

A small decline may not sound like much, but the difference on a $500,000 home can easily equal $100 - $150/month in savings. That's often the make-or-break moment for many borrowers.

Economists credit the improvement to the Federal Reserve's rate cuts and easing inflation, but markets remain volatile. If inflation ticks up again or bond yields climb, mortgage rates could rebound quickly.

What this means locally:

• Buyers should stay pre-qualified and ready - locking a rate during a dip can make a big financial impact.

• Sellers should understand that while demand is steady, affordability caps buyer budgets. Offering rate buydowns or credits can make listings stand out.

📊 Deeper Market Insights

Price Segments & Buyer Behavior

• Entry-level and mid-price homes continue to drive the majority of sales - under $400K in Canyon and under $550K in Ada.

• Luxury and new construction homes are still moving, but they rely more on incentives. Buyers are trading "brand-new" for "budget-friendly."

• Days on Market have crept up across all price points. Homes that sold in a week last year may now take a month or more.

Inventory and Negotiation Power

• Listings in both counties rose again in September, giving buyers more breathing room and leverage.

• However, not all inventory is equal - homes priced too high or in need of updates are the ones lingering.

• Expect more price reductions and seller concessions heading into the holidays.

🧭 Market Takeaways

✅ Buyers: Idaho's fall market offers opportunity. More inventory, slightly lower rates, and motivated sellers mean now may be the best window before spring's competition returns.

✅ Sellers: You can still get top dollar - but not by overpricing. Be realistic, prep your home well, and consider offering incentives if buyers hesitate.

✅ Realtors & Lenders: The data shows stability, not decline. Use this season to educate clients on how to make smarter, more confident moves.

🌄 Final Thoughts

Idaho's housing market in September 2025 isn't red-hot or ice-cold - it's balanced. Ada County remains strong, Canyon County continues steady, and mortgage rates are offering some long-awaited relief.

Heading into winter, expect prices to hold relatively flat and activity to slow seasonally. But for long-term buyers, Idaho's fundamentals - job growth, population inflow, and quality of life - remain rock-solid.

If you're thinking about buying, selling, or just want to know where your home stands in this market, our team is here to help.
👉 Contact 1st Choice Mortgage today - local experts who live, work, and lend right here in Idaho.