In February, the median sales price of homes that sold in Ada County was $492,115 — down 10.5% compared to February 2022, and the fourth consecutive month of annual decline in price. However, this was a slight increase of approximately $5,000 from last month’s median sales price.
More than 40% of all home sales that closed in February were new homes, which typically sell for more than existing/resale homes. This higher-than-average share of new construction sales likely kept the overall sales price a touch higher than the month prior.
Prices are still adjusting to mortgage rates and buyer demand, but this month-over-month uptick in prices may indicate that we’re reaching a new normal with prices. Mortgage rates and supply versus demand will be the ultimate determining factors on where prices go, but we’ll keep watching to see if prices continue to level out.
With 613 total sales for the county, closings were 7.3% lower than the same month last year. However, this is the first time since June of 2022 that we didn’t see double digit annual declines in the number of sales.
Market times continued to slow last month, with homes that closed in February spending an average of 78 days on the market before going under contract. The last time we saw DOM — the average number of days between the time a home is listed and the time it is under contract — higher than 78 days was in February 2012. Despite last months’ market times being similar to February 2012, other metrics indicate that market conditions were quite different.
Inventory counts at the end of February 2023 were roughly half of what we saw in February 2012, when our market was in the midst of recovering from the burst of the housing bubble. In today’s market, home prices are being driven by supply versus demand, not speculation like we saw leading up to the Great Recession.
Another indicator that today’s market is different, is the percentage of distressed sales, or properties are listed in IMLS as “HUD Owned,” “In Foreclosure,” “REO/Bank Owned,” or “Potential Short Sale.” In February 2023, 0.3% of sales in the county were considered distressed, compared to 45.4% in February 2012.
Today’s sellers are in a much better credit position than they were over a decade ago, and that’s a big reason we’re seeing so few distressed sales. With that said, you’ll need to work closely with your real estate agent to price per the current market and determine the most effective marketing strategy as the market adjusts.
Buyers, on the other hand, have more negotiation power, more time to decide, and more options to choose from than we’ve seen in recent history. There were 1,039 homes available on the market at the end of February, compared to 493 for the same month last year. Potential first-time buyers can also look into down payment assistance programs specific to their circumstances, as well as Idaho First-Time Home Buyer savings accounts to maximize their down payment savings.
The rolling 12-month median sales price for Elmore County home sales was $337,938 in February 2023, an 7.2% increase from the year before. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends. While price growth is still positive year-over-year, it has slowed from the double-digit increases we saw a few months ago.
Sales for February 2023 dipped as a result of waning demand for housing — affected by higher mortgage rates and higher home prices. With 24 closings last month, the number of home sales decreased 41.5% compared to the same month a year ago. Of those, 22 were existing/resale homes and two were newly constructed homes. There were 39 pending sales — properties with an accepted offer that are expected to close within 30-60 days — a decrease of 30.4% compared to February 2022, marking 12 consecutive months of year-over-year declines.
Today’s buyers have more negotiation power, more options to choose from than we’ve seen in recent history, and more time to make a decision. There were 58 available homes for purchase at the end of the month, an increase of 190.0% compared to February 2022. Of those, 44 were existing/resale listings and 14 were new homes. Market times have slowed as well, and homes that closed last month spent an average of 50 days on the market before going under contract, compared to 31 days a year ago.
In addition to negotiation power, there are programs available to help buyers make that first home purchase. Potential first-time buyers can also look into down payment assistance programs specific to their circumstances, as well as Idaho First-Time Home Buyer savings accounts to maximize their down payment savings.
The rolling 12-month median sales price for Gem County home sales was $470,700 in February 2023, an 12.1% increase from the year before. Due to the smaller number of transactions that occur in the area, we use a rolling 12-month median sales price to get a better idea of the overall trends. While price growth is still positive year-over-year, it has slowed some from recent months.
Contrary to this month’s trends in Ada, Canyon, and Elmore counties, Gem was the only county to experience a year-over-year increase in sales with 26 total sales — an uptick of 4.0% compared to the same month a year ago. Of those, 14 were existing/resale homes and 12 were newly constructed homes. New construction, alone, had an increase of 140.0% year-over-year.
There were 37 pending sales in February 2023 — properties with an accepted offer that are expected to close within 30-60 days — a decrease of 15.9% compared to February 2022, marking 19 consecutive months of year-over-year declines.
Today’s buyers have more negotiation power, more options to choose from than we’ve seen in recent history, and more time to make a decision. There were 74 available homes for purchase at the end of the month, an increase of 37.0% compared to February 2022 but the sixth consecutive month of month-over-month decreases in inventory. Of the homes available, 35 were existing/resale listings and 39 were new homes. Market times have slowed as well, and homes that closed last month spent an average of 104 days on the market before going under contract, compared to 50 days a year ago.
In addition to negotiation power, there are programs available to help buyers make that first home purchase. Potential first-time buyers can also look into down payment assistance programs specific to their circumstances, as well as Idaho First-Time Home Buyer savings accounts to maximize their down payment savings.
Those looking to sell their home in the coming months need to ensure their expectations are in line with what’s happening in the market. Prices have come down from last year, so you’ll need to work closely with your real estate agent to be sure your pricing and marketing strategy are effective. And with slower average market times, be prepared to have your home ready for showing until the right buyer comes along.
Additional information about trends within the Boise Region, by price point, by existing and new construction, and by neighborhood, are now available here: Ada County, Elmore County, Gem County, and Condos, Townhouses, and Mobile/Manufactured Homes Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.
Ada County
Canyon County
Elmore County
Gem County
Condos…
Download the latest (print quality) market snapshot graphics for Ada County, Ada County Existing/Resale, Ada County New Construction, Elmore County, and Gem County. Since Canyon County is not part of BRR’s jurisdiction, we don’t publicly report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or login to our Market Statistics page. Boise and Owyhee County snapshots can also be accessed on our Market Statistics page.
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The data reported is based primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of Boise Regional REALTORS® (BRR). These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS and BRR provide these statistics for purposes of general market analysis but make no representations as to past or future performance. If you have questions about this report, please contact BRR’s Director of Communications Taylor Gray at 208-947-7238. For notes on data sources, methodology, and explanation of metrics, visit boirealtors.com/notes-on-data-sources-and-methodology.
If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.
Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, represents real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.
“REALTOR®” is a federally registered collective membership mark which identifies a real estate professional who is member of the National Association of REALTORS® (NAR) and subscribes to its strict Code of Ethics.
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