MARCH HOUSING DATA REFLECTS PRE-COVID MARKET ACTIVITY
At Boise Regional REALTORS®, we have received a lot of questions as to how the housing market might be affected by Idaho’s stay-home order, which went into effect on March 25th. Before jumping into the March numbers, we felt it important to provide some context.
Real estate was deemed essential under the statewide stay-home order, allowing many home sales that were in process to close as scheduled. This minimized the short-term impact on sales that we might have otherwise had.
When looking at the monthly statistics for March, it’s important to keep in mind that 70% of the homes that closed last month went under contract between November and March, well before any of the restrictions went into place. With that said, March 2020 showed an increase in sales, median sales price, and some improvement in inventory (typical for the spring selling season) compared to March of 2019.
Pending sales, or the number of homes under contract, were down compared to the same month last year, which may impact the number of sales in future months; however, much of that can be attributed to record low inventory in January and February, down 19.7% and 23.4% respectively year-over-year, not necessarily a decrease in homebuyer demand.
We will continue to watch the market regularly, but until we are a bit further out from the stay-home order going into effect, we cannot say what impact this may or may not have on our local housing market.
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There were 899 home sales in Ada County in March 2020 — up 7.9% compared to March 2019. With new construction continuing to make up a large portion of the total sales, the overall median sales price reached a new high of $367,000, an increase of 9.6% compared to the same month last year. New homes typically sell at overall higher prices due to land, labor, and material costs, and the higher share of sales pushed up the county’s median sales price.
In addition to a larger share of new construction sales, the median sales price also continued to be driven by a lack of existing/resale inventory compared to demand. This was particularly true for home sales last month as there were record low numbers of existing/resale homes for sale in January and February. In March, however, there was a significant improvement in inventory for the segment with 652 existing/resale homes available for sale in Ada County, an increase of 10.1% compared to last year. Of those homes, an estimated 69.8% were listed in March, a quarter of which were listed on or after March 25th.
While the local real estate market has not come to a full stop as some had feared, now more than ever, it is important for consumers to understand their financial and housing options based their own personal and unique circumstances.
Through local, state, and national efforts, REALTORS® have been working to protect property owners and small business owners by advocating for them to be included in the CARES Act, keeping real estate essential to ensure ongoing transactions could be completed, providing information about mortgage assistance and how to avoid scams, and guiding those who have to rent, buy, or sell a home during this time on ways to keep themselves and their properties as safe as possible.
Please contact a REALTOR®, a mortgage lender, or your mortgage servicer – the company to which you send your payment to each month – if you need help or if you have questions.
More information is available under the Resources for Property Owners and Resources for Renters sections of Boise Regional REALTORS® Coronavirus Response website. Next month, in our April Market Report, we’ll have more data reflecting market activity under the statewide stay-home order. For a more up-to-date pulse of the local market, visit our Weekly Market Snapshot page.
MARCH 2020 ELMORE COUNTY HOUSING MARKET UPDATE
As of March 2020, the median sales price for homes in Elmore County reached $199,050; an increase of 18.3% 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.
There were 35 closed sales in Elmore County last month — down 20.5% year-over-year but up 2.9% from February 2020. Of those sales, 30 were existing/resale homes, and five were new homes. This left 61 homes still on the market in Elmore County at the end of March, an increase of 56.4% from March 2019.
The Months Supply of Inventory (or MSI) in Elmore County came in at 1.5 months — up 87.5% from the same month last year.
The 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. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.
MARCH 2020 GEM COUNTY HOUSING MARKET UPDATE
There were 24 homes that sold in Gem County in March 2020, the same number that sold in March 2019. This left 41 new and existing/resale homes available for sale at the end of the month, up 5.1% from a year ago.
The median sales price for home sales reached $250,435, an increase of 20.5% over the same month last year. We use a rolling 12-month median sales price to get a better idea of the overall trends due to the smaller number of transactions that occur in the area.
Pending sales (or homes under contract) measures buyer demand, while inventory (or homes for sale) measures supply. The relationship between these two metrics is reported as Months Supply of Inventory (or MSI), which was at 1.7 months in March 2020, a decrease of 10.5% from March 2019. A balanced market — not favoring buyers or sellers — is typically when MSI is between 4-6 months of supply. MSI below four months is usually more favorable to sellers, while MSI above six months is usually more favorable to buyers.
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. Find weekly snapshots at boirealtors.com/weekly-market-snapshots. Members can access Canyon County snapshots and reports 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.
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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 boirealtors.com/connect/foundation/.
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.
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.
