Home Sales Remain Strong in Ada and Canyon Counties Due to High Demand and Low Interest Rates

• Ada County home prices were down in July compared to June, per annual seasonal trends, but consumer demand remains high.
• Inventory of existing homes increased compared to last month, but overall, inventory levels are well below consumer demand, keeping prices higher than last year.
• Persistently low interest rates still make buying a home attractive for many, especially with a tight rental market.

Last month we saw home prices in Ada County reach a new historic high, but that upward trend did not continue into July. The median sales price for homes sold in July 2016 was at $243,000, up 5.5% compared to July 2015, but down 4.0% from the June 2016 figure.

“We expect to see month-over-month declines in price this time of year as we come down from the busy spring and summer months,” said Carey Farmer, 2016 President of Boise Regional REALTORS® and Broker Associate with Group One Sotheby’s International Realty. “We’ve also seen inventory of existing homes increase over the past few months, which is good news for buyers — but, sellers are still in a great position with price, especially compared previous years.”

While the number of existing homes for sale has been slowly increasing every month — up 8.7% between June and July 2016; overall inventory levels in Ada County are well below last year. This is driving the year-over-year price gains.  Inventory of newly constructed homes has fluctuated up and down each month, but has remained below the 800-mark since January 2016.

In Canyon County, prices continued to increase, reaching $169,700 in July 2016. This was 3.3% higher than June 2016, and 13.1% higher than July 2015. “Many buyers have opted for Canyon County because of the lower prices compared to Ada County,” explained Farmer, “but as demand picks up there, it puts upward pressure on prices.”

Taking a closer look at buyer demand, pending sales continued to be strong in both counties compared to last year, for existing and new construction. In July 2016, pending sales for existing homes in Ada County were up 13.4% over last year to 1,066, and pending sales for newly constructed homes were up 51.2% over last year to 573. In Canyon County, pending sales for existing homes were up 11.4% over last year to 536, and up 24.8% for newly constructed homes to 156.

Local population growth, a tight rental market, and persistently low interest rates are a few reasons that buyer demand remained high. According to the Federal Reserve Bank of St. Louis, the 30-year conventional mortgage rate was at 3.44% in July 2016 — the fourth lowest in history. Previous lows included 3.38% in October 2012, 3.35% in November and December 2012, and 3.41% in January 2013.

Additional information about trends within each county, by price point, by existing and new construction, and by neighborhood, are now available in the July 2016 Market Report. This report includes an explanation of the metrics and notes on data sources and methodology.

Download the market snapshot graphics for Ada County and Canyon County:

# # #

This report is provided by the Ada County Association of REALTORS®, which began doing business as Boise Regional REALTORS® (BRR) in 2016. BRR is the largest local REALTOR® association in Idaho, with over 3,800 members and two wholly-owned subsidiaries — the Intermountain Multiple Listing Service, Inc. (IMLS) and the Boise Regional REALTORS® Foundation. This report is based primarily on the public statistics provided by the IMLS, available at: intermountainmls.com/Statistics/Static.aspx. 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). If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.