There were 887 homes sold in Ada County last month with a median sales price of $425,000 — the point at which half of the homes sold for more and half sold for less. This new record is a result of insufficient supply compared to persistently strong demand, fueled by historically low mortgage rates.
As mortgage rates have fallen, homebuyers’ purchase power has increased and for some, so has their willingness to offer higher purchase prices to be competitive, which has also had an impact on the overall median sales price.
The 30-year fixed rate mortgage was at 2.77% on average in November 2020, according to Freddie Mac — down 24.3% from last year. Based on the median sales price, a buyer with this rate could expect a monthly mortgage payment (principal and interest only) of $1,565 if they put 10% down or $1,391 if they put 20% down.
For buyers who are selling a property and then purchasing another, their down payment often comes from the incredible equity that has built up over the past few years, as home prices have risen. However, many first-time homebuyers report securing a down payment was the most difficult task in the home buying process.
[NOTE: There are a variety of down payment and closing cost programs available through the Idaho Housing and Finance Association, the City of Boise, and the Boise City/Ada County Housing Authorities, among others. Reach out to a REALTOR® and mortgage lender to find out what resources may be available for your specific needs and situation.]
In a report from the National Association of REALTORS®, 22% of non-homeowners surveyed nationwide said that rising rents was holding them back from saving from a down payment, second only to their income level.
According to data from Apartment List.com, the average monthly rent in Ada County was at $1,106 in November, up 10.6% or approximately $106 per month compared to last year.
A $1,106 monthly mortgage payment, based on the latest interest rates and a 20% down payment, is roughly the equivalent of a $270,000 home. In November, 138 homes sold at or below that price, which represented 14.4% of all sales.
While rents remain more affordable than purchasing when looking at market averages, the pressure of rising rents and increased purchase power due to low mortgage rates is pushing many renters to become homebuyers, adding additional demand to the market.
As noted, 887 Ada County homes sold in November, another 1,700 were under contract and should close within the next month or so, and an additional 408 homes were listed as available inventory.
These numbers beg the question, “How can there be more home sales than homes available for purchase in a given month?” While we explained this in detail in last month’s report, it’s important to note that our inventory data is a snapshot of what’s available for purchase on the last day of each month, not a cumulative total of the homes that were available for purchase throughout the month.
As the supply of homes remained insufficient compared to demand, and as more buyers compete for the inventory that is available, the speed of the market continued to accelerate.
In November, the number of days between when a home was listed and went under contract was at 13 days for existing homes (compared to 32 days in November 2019) and 29 for new construction (compared to 57 days). Meaning that properties can be listed and go under contract without ever being reflected in our inventory numbers. As long as the average days on market metric remains below 30 days, we could continue to see higher monthly sales numbers compared to available inventory.
A fast, competitive market like ours presents challenges and opportunities to buyers and sellers alike. We are not seeing a typical winter slow down. In fact, throw out all of your preconceived notions about the best time to buy or sell. If you’re ready to enter the market as a buyer or seller, a REALTOR® will be your most valuable resource in helping you make decisions quickly, navigate possible multiple offer situations, and achieve your real estate goals.
In November 2020, the median sales price for homes in Elmore County reached $233,750, an increase of 20.7% 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. Home prices continue to be driven by a lack of housing supply compared to demand.
There were 43 closed sales in Elmore County last month — up 38.7% year-over-year. Of those sales, 39 were existing/resale homes, and four were new homes. This left 26 homes available for purchase in Elmore County at the end of November, a decrease of 69.0% from November 2019.
The Months Supply of Inventory (or MSI) in Elmore County was at just 0.6 months. 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.
Inventory is needed across the board, but demand is especially high for existing homes. Prices have risen, so homeowners may have more equity than they realize. If you’ve considered selling, contact a REALTOR® to understand your options.
In November 2020, the median sales price for homes in Gem County reached $331,000, an increase of 35.8% 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.
Prices continue to be driven by historically low inventory and persistent demand. Inventory levels were down year-over-year with 26 homes available for purchase at the end of the month, a 57.4% decrease from November 2019.
One way to measure the supply vs. demand relationship is by using the Months Supply of Inventory metric (or MSI) metric, which measures compares pending sales (buyer demand) to and inventory (supply). A balanced market — not favoring buyers or sellers — is between 4-6 months. In November 2020, Gem County’s supply of inventory was at one month.
Inventory is needed across the board, but demand is especially high for existing homes. Prices have risen, so homeowners may have more equity than they realize. If you’ve considered selling, contact a REALTOR® to understand your options.
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.
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.
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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.
