In July, the median sales price for homes sold in Ada County reached $390,000, inventory bottomed out at 743, closed sales hit a high mark at 1,402, and pending sales soared to 2,046.
These were all new records since 2004, when BRR started tracking these metrics, and the results of the spring and summer markets being compressed into a shorter time frame after COVID-related slowdowns in March and April.
At $390,000, the median sales price was up 11.7% compared to July 2019, and continues to be driven by the mix of sales. New homes made up 31.1% of all closed sales in July, at a median sales price of $425,000, which was up 9.1% from the same month last year.
The median sales price for the existing segment rose as well, reaching $380,000 in July, an increase of 15.2% year-over-year. Looking more closely at the mix of sales, we see a drop in the number of homes listed and sold between $200,000-$299,999, and sharp increase in those priced above $500,000, which pushed up the median for the segment and market overall:
Share of Existing/Resale Homes Sold by Price Range
| Price Range | July 2019 | July 2020 | YOY % Chg |
|---|---|---|---|
| $199,999 or less | 1.4% | 0.9% | -34.6% |
| $200,000-299,999 | 35.4% | 16.6% | -53.1% |
| $300,000-399,999 | 31.0% | 39.3% | +27.0% |
| $400,000-499,999 | 16.9% | 18.6% | +10.1% |
| $500,000-599,999 | 6.2% | 10.4% | +67.8% |
| $600,000 or more | 9.1% | 14.1% | +54.7% |
There are a number of variables at play when it comes to home prices, but the bottom line is that buyer demand continues to outpace the supply of homes for sale. The existing homes that are available for purchase are often being listed and are selling at higher prices than in what we saw in 2019. Our market has faced low inventory for years now, and the ongoing COVID-19 pandemic and recession have put even more pressure on the supply/demand relationship.
At the end of July, there was a record low 743 homes available for sale in Ada County, down 56.8% year-over-year. Of those listings, 337 were existing and 406 were new construction.
As mentioned in previous reports, we expected a rebound in closed and pending sales due to pent up buyer demand even before the pandemic hit, so the July sales numbers did not come as a surprise. There were 1,402 home sales in Ada County in July, up 22% compared to the year before and the highest number of sales on record since we began tracking the metric in 2004.
And don’t expect things to slow down just yet: Pending sales hit an all-time high of 2,046 in July, which will be reflected in closed sales data in the coming months. The concept of a “traditional buying or selling season” has been forgotten in 2020. As the market continues to change, buyers and sellers are finding it’s more important than ever before to rely on the guidance and expertise of a REALTOR®.
ELMORE COUNTY HOUSING MARKET UPDATE
Home prices were up in July with the overall median sales price reaching $206,650, an increase of 16.4% compared to July 2019. 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 in Elmore County continue to be driven by historically low inventory and persistent demand. Our market has faced low inventory for years now, and the ongoing COVID-19 pandemic and recession have put even more pressure on the supply/demand relationship.
Just how many homes are for sale in Elmore County? At the end of July, there were only 22 homes available for purchase, down 69.9% year-over-year. The Months Supply of Inventory metric, or MSI, measures the supply vs. demand relationship by comparing sales (buyer demand) to inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In July 2020, the overall months’ supply of inventory was at just 0.4 months, or less than two weeks — the lowest number we’ve seen since January 2016 when we began tracking the metric.
Despite dwindling inventory, sales were strong in July with 60 homes closing, up 1.7% compared to July 2019. And don’t expect things to slow down just yet: There were 76 pending sales in July, up 11.8% year-over-year. These will be reflected in closed sales data in the coming months.
The concept of a “traditional buying or selling season” has been forgotten in 2020. As the market continues to change, buyers and sellers are finding it’s more important than ever before to rely on the guidance and expertise of a REALTOR®.
GEM COUNTY HOUSING MARKET UPDATE
Home sales were strong in July with 35 closings, an increase of 66.7% compared to July 2019. Prices were also up with the overall median sales price reaching $262,937 an increase of 18.3% compared to July 2019. 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.
Gem County home prices continue to be driven by historically low inventory and persistent demand. Our market has faced low inventory for years now, and the ongoing COVID-19 pandemic and recession have put even more pressure on the supply/demand relationship.
The Months Supply of Inventory metric, or MSI, measures the supply vs. demand relationship by comparing sales (buyer demand) to inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In July 2020, the overall months’ supply of inventory was at 1.0 months — the lowest number we’ve seen since January 2016 when we began tracking the metric.
So, just how many homes were for sale in Gem County? At the end of July, there were 32 homes available for purchase, down 42.9% year-over-year. Of those available homes, 21 were existing/resale and 11 new construction homes.
Gem County needs more housing inventory, especially in the existing supply, to meet buyer demand. Selling your home may feel daunting during these uncertain times, but your REALTOR® can offer valuable expertise and help guide you through the process.
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
- Another record for Boise-area home sales; median price nears $400,000 from BoiseDev
- Ada County home prices, inventory set new highs and lows in July from Idaho Press
- Ada County housing market sets records for high prices, low availability from KTVB
- Ada County Real Estate Breaks Records in July from Idaho Business Review
- July Gem County Housing Market Update from Emmett Messenger Index
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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.
Cassie
As I track my own number, I the find the low inventory as a crisis for all Real Estate Agent in the Treasure Valley.
I know all the issues for this crisis, we just need more homes to sell! I do understand the real estate is a pure supply and demand market.
The side of effects if this shortage is crushing. Higher home prices means higher property taxes, less first time home buyers, urban sprawl,then more road congestion as buyer’s search for affordability. We have currently have 5.6 unemployment, 2.75% interest rate, 0.40 month supply of resale in Ada County, 1.40 month supply of New Construction in Ada County.
Now all the Mayors, Commissioner say we are growing to fast so we better slow down, what we really need is more home and subdivisions!
Thank you
Chris Findlay
Silvercreek Realty Group.
Thanks for the comments, Chris. We certainly are facing historically low inventory which puts additional pressures on affordability. To echo your sentiments, and as we shared in our 2020 Mid-Year ResidentialReal Estate Update for Ada County, whether it’s up or out, our region needs more supply. But “more supply” doesn’t mean more rooftops anywhere and everywhere. Boise Regional REALTORS® is committed to supporting comprehensive, regional planned growth, that offers adequate purchase and rental options in all price points — not only to stabilize the market but to preserve and improve the quality of life for all residents.