Note: Last year, our May 2020 market report showed a nearly 30% drop in sales year-over-year in Ada County, the largest drop since 2008. Sales were down because REALTORS® and consumers heeded the statewide stay-home order that was in place at that time, and sales quickly rebounded as we moved through the phased re-opening plan. Since there will be stark fluctuations when comparing activity this year to last year, we will focus on month-over-month changes instead.
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The median sales price for homes in Ada County reached a new record of $523,250 in May, up 8.7% compared to April 2021. Crossing this threshold may have been anticipated by some, considering the recent report from realtor.com shared by the Idaho Statesman noting that the Boise metro’s price growth was the highest in the country over the past four years.
The Boise region has faced insufficient supply for years, which has been the main driver of home prices, but several factors have accelerated the growth in recent months. Buyer demand remains high due to historically low mortgage rates, and the added ability for more people to work remotely has likely increased in-migration due to our relative comparative affordability in comparison to more expensive metro areas.
Further, the supply of homes for sale continues to be restricted by longer homeownership tenure, baby boomers aging in place, and a hesitancy from potential sellers who may be concerned about finding another home in these competitive market conditions.
New construction has often been an option for those looking to sell their existing home; however, due to rapid increases in material costs — especially lumber — coupled with supply chain disruptions, not only are new construction homes more expensive, some builders have held back available inventory until they are closer to delivery so they can price the property based on final materials costs. As a result, new construction home prices reached a median sales price record of $544,986 in May 2021 — an increase of 16.0% from the previous record of $469,900 in April 2021.
With delays in new home delivery, demand for existing homes that are ready to move-into, further increased. Prices followed suit with nearly 70% of buyers willing to pay over list price for existing homes in May 2021, compared to 30% from a year ago. This led to a new record median sales price for the existing segment of $523,250, up 8.7% from the previous record of $481,208 in April 2021.
However, the amount buyers were willing to pay over varied by price point of the home, with the most expensive homes selling for the highest amount over list. For homes that sold at or above $750,000, buyers were willing to pay nearly $80,000 beyond list price, on average, in May 2021, putting additional upward pressure on the overall median sales price.
The speed at which Ada County homes went under contract also accelerated, as the average number of days between when a home was listed for sale and an offer was accepted dropped to a record low of 12 — two days faster than in April 2021. Existing homes had accepted offers within just nine days, on average, the shortest amount of time on record, and 10.0% faster than last month.
The drastic rise in home prices and competitive market conditions can be challenging for those looking to get into the market, particularly at the lower price points. Some may decide to wait awhile before starting their home search or continue to save for a down payment to improve their purchase options, while others may consider expanding their search area for homes farther from the Boise metro. But for those who are ready to buy, we want to stress that while it’s taking more work to purchase a home right now, it isn’t impossible to buy a home in the Treasure Valley. We have hundreds of sales closing just in Ada County every month and working with a REALTOR® is your best bet to help guide you through the fast and complex process.
When you’re ready to start your home search, your REALTOR® will likely present a buyer representation agreement, giving them permission to work on your behalf, including the ability to write, present, and negotiate offers for you, once you find a home you’d like to purchase. Additionally, your agent can advise you on search strategies to find homes that fit your needs and budget and discuss the financial and legal implications of presenting offers over list price or that may waive certain contingencies like an inspection or appraisal, and whether those tactics are right for you and your specific situation.
In each of our reports in 2021, BRR is focusing on the various phases of a real estate transaction to help consumers be prepared before, during, and after a real estate transaction, showing them what their REALTOR® will be doing for them along every step, and the key data points they can look for to make sense of the market. To find a REALTOR®, please visit realtor.com/realestateagents.
Note: This time last year, there were declines in home sales as REALTORS® and consumers heeded the statewide stay-home order that was in place. Since there may be stark fluctuations when comparing activity this year to last year, we will focus on month-over-month changes instead.
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Competitive market conditions continued in May as the average number of days between when a home was listed for sale and an offer was accepted dropped to a record eight days – five days faster than in April 2021. Not only did buyers pick up properties more quickly than ever before, nearly 70% of all home buyers who closed in May were willing to pay over list price. Of those sales, buyers paid an average of $11,496 over asking, but the actual amount varied by price range.
Faster market times and the willingness of buyers to pay more than list price put upward pressure on the median sales price, which reached $258,725 – an increase of 3.1% compared to April 2021. 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 increase in home prices and competitive market conditions can be challenging for those looking to get into the market. But for those who are ready to buy, we want to stress that while it’s taking more work to purchase a home right now, it isn’t impossible to buy a home in the Treasure Valley. We have dozens of sales closing in Elmore County each month and working with a REALTOR® is your best bet to help guide you through the fast and complex process.
There were 39 closed sales in Elmore County last month — an increase of 14.7% compared to April 2021. Of those sales, 37 were existing/resale homes, and two were new homes.
When you’re ready to start your home search, your REALTOR® will likely present a buyer representation agreement, giving them permission to work on your behalf, including the ability to write, present, and negotiate offers for you, once you find a home you’d like to purchase. Additionally, your agent can advise you on search strategies to find homes that fit your needs and budget and discuss the financial and legal implications of presenting offers over list price or that may waive certain contingencies like an inspection or appraisal, and whether those tactics are right for you and your specific situation.
Note: This time last year, there were declines in home sales as REALTORS® and consumers heeded the statewide stay-home order that was in place. Since there may be stark fluctuations when comparing activity this year to last year, we will focus on month-over-month changes instead.
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In May 2021, the median sales price for homes in Gem County reached $334,000, an increase of 1.1% compared to April 2021. 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. In addition to the insufficient supply of available homes compared to demand, another factor putting upward pressure on prices was that more than half of all buyers paid over list price on homes that closed in May. Of those sales, buyers paid an average of $33,288 over asking, but the actual amount varied by price range.
The increase in home prices and competitive market conditions can be challenging for those looking to get into the market. But for those who are ready to buy, we want to stress that while it’s taking more work to purchase a home right now, it isn’t impossible to buy a home in the Treasure Valley. We are continuing to see sales closing in Gem County each month and working with a REALTOR® is your best bet to help guide you through the competitive and complex process.
There were 25 closed sales in Gem County last month — a decrease of 16.7% compared to April 2021. Of those sales, 19 were existing/resale homes, and six were new homes. Buyers had more options to choose from at the end of May, with 48 homes available for purchase, up 29.7% compared to last month. This was the highest number of active listings we’ve seen on the market so far this year.
When you’re ready to start your home search, your REALTOR® will likely present a buyer representation agreement, giving them permission to work on your behalf, including the ability to write, present, and negotiate offers for you, once you find a home you’d like to purchase. Additionally, your agent can advise you on search strategies to find homes that fit your needs and budget and discuss the financial and legal implications of presenting offers over list price or that may waive certain contingencies like an inspection or appraisal, and whether those tactics are right for you and your specific situation.
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 as well as weekly snapshots in the Market Report email, or login to our Market Statistics page.
In addition to the market reports and analysis BRR sends members each month, we send press releases to local media contacts in order to promote the local market expertise that REALTORS® bring to every transaction. BRR’s market report data and/or interviews are featured in the following articles. Feel free to share with your clients, adding your own analysis and comments.
- Boise home values go from ‘affordable’ to ‘unattainable’ from KTVB
- Is the red-hot housing market finally starting to cool down? from Idaho Business Review
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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 Pete Clark, 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.
