The median sales price for homes in Ada County reached $595,000 in April 2022, an increase of 23.9% compared to the same month last year, and a new record for the county.
Higher prices in the new construction segment played a large part in the overall price jump. New home sales made up nearly a third of all sales in April with a median sales price of $645,000, up 36.7% from last year. However, home prices rose across the board, with the median sales price for existing/resale homes reaching $570,000, a gain of 16.9% over last year. These were record highs for both segments.
Mortgage rates also rose in April, with the 30-year fixed rate mortgage average reaching 5.1% at the end of the month, according to data from Freddie Mac. National economists have predicted that the increase in mortgage rates will eventually slow the market, but we haven’t seen a price slowdown in our local sales data yet. It’s important to remember that homes that closed in April likely went under contract in February and March, so we may not see the immediate impact of rates on prices for a few months. Pending sales, or those with an accepted offer that are expected to close in the next 30-60 days, may provide a better indication of how rates are affecting our market at this time.
There were 1,525 pending sales at the end of the month, a 12.1% decline from April 2021, and 815 total sales for the county in April, down 17.0% year-over-year. The existing/resale segment claimed 586 of those sales, which was a drop of 12.3% compared to last year. Higher home prices, coupled with higher mortgage rates, which results in higher monthly payments for buyers who are financing a home purchase, may be hampering sales.
Looking specifically at existing/resale sales data in April, 53.2% of buyers paid over list price, indicating that competition remained strong, particularly at the median and lower price points. While it may seem obvious, it means nearly half of all buyers did not pay over list, resulting in an average original list price received of 101.0% for existing/resale homes in April 2022, compared to 104.9% in April 2021.
Buyers may be discouraged by increasing rates and prices, but there is some good news — in April, inventory increased by 170.0% compared to the same month last year. While supply is still constrained, especially at the lower price points, more year-over-year inventory is a sign we may be seeing a shift to a more balanced market.
There is some uncertainty as to how inflation, higher mortgage rates, and other economic factors will affect the residential housing market; however, REALTORS® understand that each homeowner and buyer’s situation is unique, and help their clients make decisions based on factors that are within their control.
Whether you’re ready to buy today or would like to purchase within the next two, five, or even ten years, work with trusted advisors to make a plan to reach your goals. Taking important steps today, such as improving your credit, researching down payment programs, and saving for your down payment in a tax-sheltered savings account can really make a difference when you’re ready to make a move.
Elmore County experienced triple digit year-over-year gains in inventory, with 37 available homes at the end of the month, an increase of 146.7% compared to April 2021. Of these, 23 were existing/resale listings and 14 were new homes. Elmore County experienced record low housing inventory this time last year. Increased inventory inches us closer to a more balanced market that doesn’t favor buyers or sellers.
More inventory is certainly helpful, but demand continued to outpace supply and Months Supply of Inventory (MSI) was at 0.7 months, meaning, if no additional homes were listed, the supply of homes would run out in a matter of weeks.
The rolling 12-month median sales price for Elmore County home sales was $316,500 in April 2022, a new high for the county and a 23.2% 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.
With 55 closings, the number of home sales increased 12.2% compared to the same month a year ago. Of those, 52 were existing/resale homes and three were newly constructed homes.
The rolling 12-month median sales price reached $425,000 in April 2022, an increase of 27.4% compared to the same month last 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.
Home prices have been primarily driven by insufficient supply compared to buyer demand; however, inventory has been on the rise. April 2022 marked 12 consecutive months of year-over-year gains in housing supply with 62 homes available for purchase at the end of the month — a 67.6% increase compared to April 2021. Of those, 34 were existing/resale homes and 28 were new.
We’re glad to see these inventory gains but the Gem County housing market has a way to go before being considered ‘balanced’. Months Supply of Inventory was 1.9 months in April, meaning if no additional homes were listed, the supply of homes would run out in about two months. A balanced market, or one not favoring buyers or sellers, is typically between 4-6 months.
Another indication that the market may be normalizing a bit is Days on Market (DOM), which is the average number of days between the date a property is listed and when it has an accepted offer. Homes that sold in April spent an average of 44 days on the market before going under contract, 109.5% longer than the 21 days in April 2021, and more in line with historical market norms.
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, City Statistics, 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…
City Statistics
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 Pete Clark, Director of Communications for Boise Regional REALTORS®. 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. For those seeking information on mortgage and rental assistance, including down payment programs, visit the Resources for Property Owners and Renters sections of BRR’s website.
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.
