SUPPLY AND DEMAND DYNAMICS CONTINUE TO
DRIVE HOME PRICES UP IN ADA COUNTY
Key Takeaways:
- The existing home median sales price reached a new high at $329,000, up 14.7% from May 2018. Local home prices are being driven by the persistently low inventory of existing homes compared to demand.
- Due to the lack of inventory of homes for sale at the lower price points, the share of higher-priced home sales continued to rise, further driving up the median price for the segment, as well as the market overall.
- The median sales price for Ada County reached a new record of $342,990 in May 2019, for existing and new homes combined. This was up 12.5% over the same month last year.
Analysis:
The median sales price of existing/resale homes in Ada County reached a new high of $329,000 in May 2019, up 14.7% from May 2018. As noted in previous market reports, local home prices are being driven by the persistently low inventory of existing homes compared to demand.
One of the metrics used to determine supply vs. demand is Months Supply of Inventory (or MSI). A balanced market—not favoring buyers or sellers—is typically between 4-6 months of supply. In May 2019, the Months Supply of Inventory metric for Ada County was at just 1.5 months for all price points combined, and for existing homes priced below $300,000 MSI was at one month.
Our market needs additional inventory, especially existing homes below the $300,000 price point. Homeowners may have more equity than ever as home prices have risen, and those who have considered a move should to contact a REALTOR® to understand their options for selling and buying.
Because there are fewer homes available at the lower price points, the share of home sales above $300,000 continued to rise – at 61.3% of all existing homes sales in May 2019. As a result, as more existing homes sell at higher price points, it further drives up the median price for the segment, as well as the market overall.
To that point, the median sales price in Ada County, for existing and new homes combined, reached a new record of $342,990 in May 2019, up 12.5% year-over-year.
For those looking to purchase a home in Ada County, don’t lose hope. We’re still at the beginning of the summer selling season so there will be more homes coming online soon. Get your financing in order and work with your REALTOR® to write a competitive offer so that you’re ready when you find your next home.
MAY 2019 ELMORE COUNTY HOUSING MARKET UPDATE
As of May 2019, the median sales price for homes in Elmore County reached $168,900; an increase of 11.5% compared to the same time last year and a new record high. 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.
The number of closed sales in Elmore County also increased to 47 last month — up 67.9% from April, but still down 4.1% from the same month last year.
The Months Supply of Inventory (or MSI) in Elmore County increased to 1.8 months — up 20.0% from the same month last year. However, despite the increase in MSI, there were only 68 homes still on the market in Elmore County at the end of May, down 19.0% from May 2018.
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.
The increase in median home price and closed sales is encouraging news for those looking to sell their home in Elmore County. Work with your REALTOR® to take advantage of the current market and get the most out of your current property. And for those looking to buy a home, keep an eye out! Conditions like this could lead to more homes becoming available in your market.
MAY 2019 GEM COUNTY HOUSING MARKET UPDATE
As of May 2019, the median sales price for Gem County was at $213,750, an increase of 11.1% over the same period 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.
There were 38 homes sales in May, up 15.2% from May 2018, and up 40.7% from last month. This left 51 homes available for sale at the end of the month, down 12.1% from a year ago.
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 1.4 months in May 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.
Gem County has had persistently low existing/resale inventory for the last several years, resulting in buyer demand outpacing supply, as shown through the low MSI calculation. This, in turn, has caused home prices to rise in Gem County.
Prices will most likely continue to grow and homes will continue to sell quickly, making this market more competitive. Working with a REALTOR® is the best way to find a home you like and gives you your best chance at securing it in markets like this.
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, and City Data 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 do report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or reach out to us directly at cassie@boirealtors.com or annie@boirealtors.com.
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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®. 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. 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).
