ADA COUNTY HOME PRICES REACH NEW BUT EXPECTED HIGH POINT IN AUGUST
Key Takeaways:
- The median sales price was at $355,000 in August 2019, up 6.6% over the same month last year.
- We’ve seen a new record high median sales prices for Ada County every August since 2016 — driven by higher list prices and faster market times in the summer.
- The existing housing supply is being outpaced by demand, which increases in the summer months, driving prices up. The increased share of new construction sales is also a factor in the higher overall median sales price.
Analysis:
Home prices were up 6.6% from last year in Ada County, hitting a record median sales price of $355,000 in August 2019. This high point continues the trend we’ve seen since 2016 with new record highs each August.
It typically takes one to two months for a home to close after it goes under contract, so many of the homes that closed in August likely went under contract at the end of June, July, or even early August. Analyzing market data going back to 2016 shows that homes are listed at the highest prices of the year during these months, and have some of the fastest market times, resulting in the highest sales prices of the year.
It’s not a surprise the list prices build through the summer, considering the warmer weather makes it easier for homeowners to prep their property to sell, and many buyers are hoping to get into a new home prior to school starting. Then this year, that seasonal cycle was compounded by another year-over-year decline in the supply of home compared to the increase in demand, resulting in another August with a record high median sales price.
The overall median sales price was also pushed up by a high number of new home sales — which accounted for 30.1% of all home sales in August 2019, up 14.4% year-over-year. New home prices are typically higher due to the cost of land, materials, and labor, so a higher share of new home sales has a big impact on the overall median sales price each month.
Thinking about purchasing a home? Whether prices remain high or dip down, REALTORS® are the best-equipped partner to help buyers understand where they may have room to negotiate and help sellers correctly price their homes based on local, real-time data.
AUGUST 2019 ELMORE COUNTY HOUSING MARKET UPDATE
Home sales activity was up in Elmore County in August with 50 closed home sales and 69 homes going under contract, or “pending” — increases of 6.4% and 16.9% respectively, from the year before. However, inventory levels dropped again, marking 55 consecutive months of year-over-year declines. There were 76 homes available for purchase at the end of the month, down nearly 25% from August 2018.
The median sales price reached $179,975 — an increase of 17.6% compared to the same time last year. 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. Prices continue to be driven by home buyer demand and persistently low inventory.
To better understand the impact of demand and supply, we use the Months Supply of Inventory (MSI) metric. This compares pending sales (or homes under contract) which measures buyer demand and inventory (or homes for sale) which measures supply. In August 2018, there were 1.7 months of supply available. A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply.
Whether you’re interested in buying or selling in Elmore County, it’s important to do your homework and find trusted partners to work with. REALTORS® are best-equipped to help buyers understand where they may have room to negotiate and help sellers correctly price their homes based on local, real-time data.
AUGUST 2019 GEM COUNTY HOUSING MARKET UPDATE
There were 34 homes sales in Gem County in August, down 20.9% from August 2018, but up 61.9% from last month. Pending sales were also down, with 50 homes pending in August, down 5.7% from a year ago. This left 52 homes available for sale at the end of the month, down 27.8% year-over-year.
The median sales price for Gem County reached $231,885, an increase of 19.1% over the same period last year, and a new record high for the county. We use a rolling 12-month median sales price to get a better idea of the overall trends due to the smaller number of transactions that occur in the area. Home prices have been driven by persistently low supply versus demand.
Speaking of supply versus demand, the Months Supply Inventory (MSI) metric measures the relationship between pending sales (which measures buyer demand) and inventory (which measures supply). In August 2019, there were 1.7 months supply of inventory in Gem County, down 10.5% from August 2018. A balanced market— not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.
When it comes to rising home prices in Gem County, the function of supply and demand is truly the biggest factor. If you’re considering selling, now would be a great time to talk to your REALTOR® about your options.
RESOURCES:
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 City Data Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.
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 report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or reach out to us directly at cassie@boirealtors.com or annie@boirealtors.com.
# # #
This report is provided by Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, representing 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.
If you have questions about this report, please contact Cassie Zimmerman, Director of Communications for Boise Regional REALTORS®. If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.
The data reported is based primarily on the public statistics provided by the IMLS. 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. The term “single-family homes” includes detached single-family homes with or without acreage, as classified in the IMLS. These numbers do not include activity for mobile homes, condominiums, townhomes, land, commercial, or multi-family properties (like apartment buildings).
