NEW YEAR, NEW RECORD HOME PRICE IN ADA COUNTY
Key takeaways:
- As the share of new home sales continues to increase, so does the overall median sales price. In January 2020, 40.2% of all home sales were new construction, up 8.2% compared to January 2019. New homes are typically priced higher due to increasing cost of land, labor, and materials.
- Persistent demand from home buyers compared to the record low number of existing/resale homes for sale — just 361 existing homes available, down 28.1% from January 2019 — also drove prices up.
- While condos, townhomes, and mobile/manufactured homes are a small part of our area’s overall housing supply, these property types may offer buyers additional options at lower price points.
Home prices in Ada County hit a new record high median of $363,000 in January 2020 due to an increasing share of new home sales, and, a lack of supply of existing homes compared to demand.
As we’ve noted before, the Ada County housing market has been shifting to a new norm with new construction sales gaining more and more of the total market share. In January 2020, new construction sales made up 40.2% of all sales — an 8.2% increase from a year ago. New homes are typically priced higher primarily due to increasing cost of land, labor, and materials. In January 2020, the median sales price for new construction was at $419,440 — up 12.2% from the same month last year.
Persistent demand (as indicated by pending sales) compared to the record low of number of existing/resale homes for sale in January 2020 also drove up prices for the existing/resale segment, and in turn, the overall median sales price.. There were only 361 existing homes available to purchase at the end of the month — down 28.1% from January 2019 while pending sales were up 5.4% year-over-year. In January 2020, the median sales price for the existing/resale segment was at $340,000 — up 18.7% from the same month last year.
Rising prices and fewer options can be discouraging for those looking to buy, but it’s important to note that the median sales prices noted here are based on sales activity for single-family homes with or without acreage. As a reminder, the median sales price is simply the point at which half of the homes that sold during the month sold for more, and half of the homes sold for less.
Furthermore, BRR’s market reports have traditionally focused on single-family activity only, but there are additional property types available. For example, in January 2020, there were 39 townhomes that sold in Ada County for a median sales price of $264,500. This left 45 townhomes available for purchase at the end of the month. (NOTE: Learn more about sales activity and median prices of these property types in our new Condos, Townhomes, and Mobile/Manufactured Homes Market Report.)
Your REALTOR® has access to the latest and most comprehensive database of local homes for sale, including townhomes and condos which are sometimes available at lower price points. In addition, current low mortgage rates are helping to increase buyers purchase power. If you are considering a move, make sure you are working with a mortgage lender and a REALTOR® to understand all the options available to you for financing and inventory.
JANUARY 2020 ELMORE COUNTY HOUSING MARKET UPDATE
Looking at sales over the past 12 months, the median price for homes that sold through January 2020 in Elmore County was $197,500— up 18.3% over the same period last year. Due to the smaller number of sales in the county, the 12-month average is a helpful way of analyzing area price trends, as it adjusts for any months in which a very high- or low-priced home sold that would otherwise be inconsistent with the general market.
Home prices in Elmore County are being driven by an increasing share of new home sales, and, a lack of supply of existing homes compared to demand.
In January 2020, 35 homes sold in Elmore County, down 22.2% compared to last year. This left 62 homes available for sale at the end of the month — an increase of 47.6% year-over-year. Of those homes, half were existing/resale listings and half were new construction listings.
Like other areas in southwest Idaho, Elmore County has seen a decline in the supply of existing homes for sale in recent years. The new construction that has come online is helping meet demand, but there’s still a need for more inventory. If you’re thinking about selling, talk your REALTOR® to find out what your home may be worth and what options are available based on your specific situation.
JANUARY 2020 GEM COUNTY HOUSING MARKET UPDATE
In January 2020, 16 homes sold in Gem County, up 23.1% from last year. This increase in sales could be due in part to the bump in existing inventory that came onto the market at the end of last year. This left 42 homes available for sale at the end of the month — an increase of 2.5% year-over-year.
What does that mean for home sales in the coming months? Homes under contract, also called “pending sales,” are properties with an accepted offer that should close within 30-90 days. Pending sales were also up year-over-year in January by 2.5%, so February and March will likely bring more sales than what we saw in the first month of 2020.
Looking at sales over the past 12 months, the median price for homes that sold through January 2020 was $246,350 — up 24.3% over the same period last year.
Due to the smaller number of sales in the county, the 12-month average is a helpful way of analyzing area price trends, as it adjusts for any months in which a very high- or low-priced home sold that would otherwise be inconsistent with the general market.
We anticipate that number of home sales in Gem County will continue to grow as we head into the spring market and with prices where they are, those who are selling are getting a great value for their homes. If you think you might be ready for a move, talk your REALTOR® to find out what options are available based on your specific situation.
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, City Data, and Condos, Townhouses, and Mobile/Manufactured Homes 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 login to our Market Statistics page.
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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®. 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.
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.
