You may have read the latest IBR article which led with average home prices in Ada County. We wanted to clarify a few of the points noted, in case you get questions from consumers.
The article was correct in noting that the average sale price for Ada County exceeded $300,000 for the first time, however, BRR does not report on average prices based on the fact that this figure can be skewed up if a few expensive homes sell one month, and not the next. Our market analyses focus on the median sales price, as it’s the midpoint of all home sales and gives a better baseline to track month-over-month and year-over-year. While that explanation is referenced in the article, it’s an important clarification for consumers unsure of the difference between the two metrics.
Canyon County’s median home price in May 2017 was 10.8% higher than May of 2016, however, it was not the record. That said, it was just $410 below the record high median sales price of $179,900 set in April 2017.
And to correct two of the quotes attributed to BRR’s Chief Executive Officer…
We shared that while there is a shortage of inventory overall and in the lower to middle price points, there is more inventory available priced above $500,000, in both existing and new construction. For those homeowners who are interested in able to move up in price point, they likely won’t feel the same supply constraints as buyers in other price points.
We also confirmed that we are seeing an increase of existing inventory month-over-month, which is positive, but more inventory is definitely needed. When asked where that might come from if not from new construction, we talked about homeowners who could sell and don’t need to buy locally, potentially freeing up some additional existing inventory. For instance, people moving out of state for work or other reasons (misquoted to say that “many people are moving out of the Treasure Valley,” which is inaccurate); those who own single-family rentals and no longer want to be landlords; and, again, those who can move up in price point.
If you have any questions about this article, others you’ve read, or market statistics shared by BRR, please don’t hesitate to call.
