The median sales price for homes in Ada County reached $575,000 in March 2022, an increase of 22.6% compared to the same month last year, and a new record for the county.
This jump was driven primarily by the new construction segment — accounting for nearly a third of all sales in March — which saw a median sales price of $606,050, up 31.5% from last year. The median sales price for existing/resale homes was up 16.7%, reaching $555,000.
Many economists are predicting that the increase in mortgage rates will eventually temper home prices, but it’s hard to say to what extent, and if inventory will still remain the biggest factor in local home prices.
Fortunately, inventory has been increasing in recent weeks, with levels up 103.1% from the same time last year. More inventory is definitely good news for buyers, but they will need to make quick decisions once they find something they’re interested in since supply is still constrained.
The number of days on market for existing homes dropped to 15 days, on average, in March, down 34.8% from February. The 15-day average is the lowest since late last summer, which may be a sign that the spring market will once again be competitive.
Whether due to limits on affordability or willingness among buyers, existing homes that closed in March didn’t sell for quite as much over list price as they did last year.
The percent of original list price received on homes in March 2022 was 100.8%, on average, compared to 104.1% in March of 2021. Another interesting finding was that fewer existing homes sold over list price this year than last year, with the share dropping from 58.7% in March of 2021 to 41.3% in March of 2022.
At first glance, it may seem odd that home prices have gone up so significantly when, on average, buyers are paying close to asking price. However, it’s important to note how list prices are set. When a similar home sells, it can become a “comparable” property for future listings nearby; so, as homes appreciate, future asking prices tend to rise as well.
But the list price is just a starting point. Sometimes buyers pay more, and sometimes they pay less. Ultimately, a home sells for what the market determines it’s worth.
Although it may be tempting for sellers to price their home lower than what comparable data indicates to encourage multiple offers, it’s important to remember that pricing low doesn’t guarantee a bidding war and may not always be in the seller’s best interest. On the other hand, setting an asking price that’s higher than what comparable data supports may exclude a seller’s property from some search results, potentially reducing the pool of prospective buyers. Using MLS data and market experience, a REALTOR® will provide you with a pricing and marketing strategy that’s right for each property and situation.
Elmore County saw a much-needed boost in inventory in March 2022, as the 39 homes available for sale at the end of the month marked a 143.8% increase compared to the same month last year.
The rolling 12-month median sales price for Elmore County home sales was $316,000 in February 2022, a new high for the county and a 27.2% increase from the year before. 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.
While the new inventory was welcome and somewhat expected due to the seasonal increase in listing activity during the spring months, the Months Supply of Inventory (MSI) still was at just 0.8 months, meaning, if no additional homes were listed, the supply of homes would run out in a matter of weeks.
The sustained demand for homes also impacted days on market, as the county average was just 21 days during March 2022, a 57.1% drop compared to March 2021. The shift in DOM was felt most acutely in existing/resale homes, as the average was just 14 days.
There were 45 home sales that closed in March, 39 of which were existing/resale homes and six were newly constructed homes. Sales were down just slightly from the 48 total sales in March 2021.
As the market continues to pick up throughout the spring and into the summer, it’s critical for buyers to work with a REALTOR®. REALTORS® help their clients make a plan, connect them with a lender and get pre-approved, and expertly navigate the home-buying process.
March 2022 marked the 11th month of year-over-year gains in housing supply for the county with 57 homes available for purchase at the end of the month — a 171.4% increase compared to the same month a year ago.
Sales activity in March was down, however, as only 23 homes sold, representing a 47.7% year-over-year drop. Despite the sales slump, there were 12 newly constructed home sales which tied the monthly record in Gem County for most homes sold in the new construction segment dating back to beginning of BRR records in 2005.
The drop in overall sales may not last long, as pending sales jumped to 65 in March 2022, which was a 47.7% increase from the previous month. Pending sales are properties with an accepted offer that should close within 30-90 days.
The rolling 12-month median sales price also continued to climb in March, eclipsing the $400,000 threshold for the first time at $408,500. 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.
Homes spent an average of 53 days on the market before having an accepted offer, representing a 152.4% increase from the 21-day average in March 2021.
Those who are looking to buy in Gem County have more options available than we saw a year ago, and with market times slowing a bit, things aren’t quite as crazy competitive as they once were. Whether a client is looking for raw land, a new home in a subdivision, a hobby farm, or something else, a REALTOR® has access to the most up-to-date listing information and powerful search tools through the MLS, as well as the market expertise to find the property that best meets your needs.
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 publicly 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. Boise and Owyhee County snapshots can also be accessed on our Market Statistics page.
# # #
The data reported is based primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of Boise Regional REALTORS® (BRR). 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. If you have questions about this report, please contact Pete Clark, 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. For those seeking information on mortgage and rental assistance, including down payment programs, visit the Resources for Property Owners and Renters sections of BRR’s website.
Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, represents 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.
“REALTOR®” is a federally registered collective membership mark which identifies a real estate professional who is member of the National Association of REALTORS® (NAR) and subscribes to its strict Code of Ethics.
