A Market Update: Coffee and Conversation with Lysi Bishop

With over 30 years of experience, Lysi Bishop is one of the most trusted and knowledgeable voices in Treasure Valley real estate. Recently, we sat down with Lysi over coffee and asked her to share her perspective on current market trends. What follows is her thoughtful reflection on where we are and where we might be headed.

Pricing Stability After a Historic Surge

Lysi began by noting that the Ada County existing home market has entered a period of price stability. After the rapid appreciation of 2021–2022, the average sales price of existing homes has hovered around $600,000 for the past three years, with fluctuations staying within a healthy 3–6% range. This follows what Lysi described as a “once-in-a-generation” gain during the 2020–2021 COVID market, when average home prices rose approximately 50% in just 18 months—a dramatic increase in real estate wealth.

By 2022, however, the pace began to cool. Prices softened more than 10% over the course of that year, and continued to soften a bit more in 2023. The market recalibrated, and by the end of 2023, pricing had leveled out and has since shown modest, steady gains.

A Window for Strategic Decisions

Today’s environment presents a refreshing contrast to the urgency of the past few years. “Buyers and sellers alike now have more time and space to make strategic decisions,” Lysi shared. Without the pressure of fast-rising prices, the current market allows participants to act thoughtfully based on personal goals and timing. 

As Lysi notes, affordability remains a challenge. The substantial price increases during the COVID-era boom have made homeownership less accessible for some. In response, many buyers have shifted their searches to more affordable areas with longer commutes, striking a balance between cost and lifestyle.

The Interest Rate Equation

On the topic of financing, interest rates are one of the most significant factors shaping buyer behavior today. The Federal Reserve’s shift toward “quantitative tightening,” then a “higher for longer” stance on rates, has elevated borrowing costs, keeping many potential buyers and sellers on the sidelines.

While analysts anticipate two potential rate cuts this year, Lysi notes some buyers are not waiting for the rate cuts: “We’re hearing fewer buyers indicate they are waiting for rates to drop, and more buyers planning as if rates in the 6% range may be the new normal.” For prospective buyers, the key question may no longer be “Should I buy now?” but rather, “Am I in a position to buy and hold through whatever may come next?”

The Long-Term Opportunity

Looking ahead, Lysi points to the Treasure Valley’s robust long-term trajectory, driven by growth from companies like Micron, Meta, and recently the office of an Amazon subsidiary entering our market. These economic tailwinds may signal an opportune time to explore real estate as a long-term investment. Whether it's single-family homes or multifamily properties, today’s stable pricing and strong regional development could create the right conditions for strategic, growth-oriented investing in the years to come.

Curious about what today’s market means for you? Our team is here to offer insights tailored to your goals—whether you’re buying, selling, or simply exploring your options.