The median sales price for all homes sold in Ada County in August reached $400,000, up 12.7% year-over-year, surpassing the previous high in July 2020 of $390,000.
Our home prices continue to be driven by a shrinking supply of existing homes available for sale compared to demand, more new homes selling at ever higher prices, increased purchase power due to low mortgage rates, and now, buyer activity being compressed into a shorter time period as a result of COVID-19.
First, the number of existing homes for sale has trended down for years now, and there were only 239 existing homes available for purchase at the end of August. This is a dramatic decrease of 72.1% compared to the same month last year, and a record low since BRR began tracking the metric in May 2006.
To further illustrate this imbalance, the months supply of inventory for existing homes in Ada County was also at a record low of 0.3 months as of August. For reference, a balanced market would be between 4.0-6.0 months. This lack of inventory is putting tremendous pressure on existing home prices, which reached a median sales price of $385,500 in August.
Another factor impacting prices is the mix of sales. With fewer choices among existing inventory, many homebuyers are purchasing new construction, increasing the demand in that segment. In August, new homes made up 32.9% of all closed sales, at a median sales price of $444,900. In addition to greater buyer demand, new construction prices are being driven by rising lumber prices. According to the National Association of Home Builders, “The price of lumber has staged a staggering increase in recent months, rising roughly 80% since mid-April… [which is adding] thousands of dollars to the cost of a typical newly-built home.”
Third, the historically low mortgage interest rates are allowing buyers to purchase at higher prices points. For comparison purposes, the rate in August 2006 (the market’s previous peak) was at 6.5% versus 2.9% in August 2020. This has kept monthly payments at roughly the same as what they were during the previous peak in 2006, despite the increase in home prices.
Finally, after a brief COVID-related slowdown earlier this spring, home sales rebounded in August with 1,251 homes closing during the month, up 18.9% compared to August 2019. Interestingly, closed sales year-to-date versus the same period last year were nearly even, with 7,737 and 7,547 sales, respectively.
Off-market new inventory is allowing us to have consistent sales numbers despite low inventory. With so many buyers looking at new construction, builders can sell homes that are not yet built, and therefore, not yet reflected in the IMLS as inventory.
In August, nearly 25% of newly built homes sold were not previously listed on the MLS showed up as a closed sale. This should give hope to homebuyers that while inventory is low, there are options available. Identifying new construction opportunities, in addition to options in the existing market, is just one more way a REALTOR® can bring value to your home search.
ELMORE COUNTY HOUSING MARKET UPDATE
Homes that sold in Elmore County in August flew off the market, spending an average of 15 days for sale before going under contract. This was 54.5% faster than in August 2019 when the average days on market was 33.
While homes went under contract quickly, the number of sales were down with 38 homes closing in August, a decrease of 24.0% compared to the same month last year.
The median sales price reached $219,625, an increase of 21.6% 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 home buyer demand and persistently low inventory.
In fact, there were only 23 homes available for purchase at the end of the month, a dramatic decrease of 69.7% compared to August 2019, resulting in 0.4 months of supply for the county in August. The Months Supply Inventory (MSI) metric measures the relationship between pending sales (which measures buyer demand) and inventory (which measures supply). A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply.
Buyers haven’t been wasting any time picking up available homes in Elmore County. With limited inventory and persistent demand, homes will likely continue to sell quickly. In markets like this, buyers should rely on the expertise of a REALTOR® to help them quickly identify potential properties and secure the deal when they’re ready to make an offer.
GEM COUNTY HOUSING MARKET UPDATE
Home sales picked up slightly in Gem County with 37 properties closing in August 2020, an increase of 11.8% compared to the same month in the year before and 8.6% increase over July 2020.
The median sales price was $270,283, up 16.6% 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. Prices continue to be driven by historically low inventory and persistent demand. Inventory levels were down year-over-year with 37 homes available for purchase at the end of the month, a 30.2% decrease from August 2019.
One way to measure the supply vs. demand relationship is by using the Months Supply of Inventory metric (or MSI) metric, which measures compares pending sales (buyer demand) to and inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In August 2020, Gem County’s supply of inventory was at one month.
Inventory is needed across the board, but demand is especially high for existing homes. Prices have risen, so homeowners may have more equity than they realize. If you’ve considered selling, contact a REALTOR® to understand your options based on sales of homes similar to yours.
REPORTS AND GRAPHICS
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 report on Canyon County market trends. Members can access Canyon County snapshots and reports as well as weekly snapshots in the Market Report email, or login to our Market Statistics page. Since Canyon County is not part of BRR’s jurisdiction, we don’t provide analysis on Canyon County market trends.
MEDIA COVERAGE
In addition to the market reports and analysis BRR sends members each month, we send press releases to local media contacts in order to promote the local market expertise that REALTORS® bring to every transaction. BRR’s market report data and/or interviews are featured in the following articles. Feel free to share with your clients, adding your own analysis and comments.
- Median Price for Ada County Homes Reaches $400,000 from IdahoNews
- Ada County median home price breaks $400,000 barrier for first time from BoiseDev
- As Ada County home prices rise, new buyers share their house hunting experience from IdahoNews
- Median Ada County home sales price passes $400,000 in August thanks to dwindling inventory from KTVB
- Idaho’s Real Estate Crunch Pumps Prices, Lumber & Labor Costs Pushing New Homes from Boise State Public Radio
- Minimum wage workers in Idaho struggle with Ada County’s high housing prices from KTVB
- Ada County Home Prices Continue to Gain Altitude from IdahoNews
- Ada County breaks residential real estate records again from Idaho Business Review
- Local home prices are rising fast. Median income is not from BoiseDev
- Analysis: Land prices a major factor in new home construction from Idaho Business Review
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Boise Regional REALTORS® has a variety of resources about mortgage assistance, unemployment assistance, how to avoid scams, and more, under the Resources for Property Owners and Resources for Renters sections of BRR’s Coronavirus Response website.
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 boirealtors.com/connect/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.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
