In November 2021, the median sales price for new homes in Ada County was $601,301— passing the $600,000-mark for the first time. This is an increase of 39.8% compared to the same month last year.
This record reflects a variety of market factors that were present prior to the pandemic — namely increasing costs of land, labor, and materials — as well as the ongoing impact of pandemic-related shutdowns that continue to create delays in increase costs in the global supply chain. (A recent article from the National Association of Home Builders provides more context on this, and includes comments from a local custom home builder, Steve Martinez of Tradewinds.)
Speaking with Christine Comstock, Managing Associate Broker for CBH Homes, she echoed these sentiments, particularly on the impact of materials on the final price of a new home: “Lumber is a constant moving commodity. We work hard to keep our pricing in check in the midst of a fluctuating market. We are averaging a 24% increase year over year.”
The external pressures causing delivery delays are also beginning to impact the number of sales for new homes, which were down 32.2% year-to-date compared to last year.
Also effecting new construction sales, is the uptick in existing inventory over the past six months. There were 426 existing homes available for purchase at the end of the month, an increase of 217.9% compared to November 2020.
There is a strong correlation between the existing inventory and new construction pending sales (properties under contract with an accepted offer that should close within 30-90 days). Looking at activity since January 2019, we have seen new construction pending sales go up when existing inventory dips, then begin to slip as existing inventory increases.
You’ll always have a certain number of buyers in the market that are strictly looking for a new home, but existing homes are often the starting point for many buyers looking for something that’s move-in ready. So as existing home inventory has been limited, some buyers shifted to the new construction market. Then as delays in delivery occurred, and as more existing inventory is becoming available, some are reverting back to the resale market. This ebb and flow may seem obvious, but the big takeaway is that the demand for homes remains strong in our area, and motivated buyers continue make purchasing decisions based on what’s available.
The strong and consistent demand for housing is apparent when examining the Months Supply Inventory (MSI) metric, which takes the number of homes for sale divided by the average number of sales by month for the preceding 12 months. As of November 2021, Ada County was at just 0.9 months for existing homes and 1.5 months for new construction. This means, if no additional homes were listed, the supply of homes for sale would run out in less than two months. A balanced market — not favoring buyers or sellers — is typically between 4-6 months of supply.
Whether you’re considering a new home or existing property, your REALTOR® is there to guide you through every step of your home buying journey. Once a seller or builder has accepted your offer, the sale goes “pending” and there are a number of steps that need to take place before you reach the closing table. From appraisals and inspections to negotiations and final paperwork, a REALTOR® is there to make sure your interests are being represented throughout every step in the process.
Other notable statistics from November 2021:
- The median sales price for existing homes was $510,000, up 19.7% year-over-year and a slight 1.9% drop from October.
- Existing homes were spending an average of 25 days on the market before going under contract, 92.3% longer than the 13 days we saw a year ago.
- Total sales were down 7.8% from a year ago, primarily from delays in the new construction segment, as existing sales were up 3.5%. More existing inventory resulted in more existing home sales.
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®, visit realtor.com/realestateagents.
There were 43 homes available for purchase at the end of the month in Elmore County, an increase of 72.0% compared to November 2020. Of the available properties, 29 were existing/resale homes and the other 14 were new construction.
While more listings provide additional options for buyers, it’s still not enough to meet demand. One metric used to illustrate the supply vs. demand relationship is Months Supply of Inventory (MSI) which takes the number of homes for sale divided by the average number of sales over the preceding 12 months. MSI was at just 0.9 month in November, whereas a balanced market, one that doesn’t favor buyers or sellers, is typically 4-6 months of supply.
After passing the $300,000-mark in October 2021, the 12-month rolling median sales price continued its climb in November, reaching $312,000, a 35.4% increase over 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.
Sales were also up 30.8% compared to November 2020, and of the 68 homes that sold, 59 were existing/resale properties.
November 2021 marked the seventh consecutive month of year-over-year gains in housing inventory. There were 84 homes available for purchase at the end of the month in Gem County, an increase of 147.1% compared to November 2020. Of the available properties, 46 were existing/resale homes and the other 38 were new construction.
We’re starting to see a shift toward a more balanced market in Gem County. Months Supply Inventory was at 2.7 months, which is much closer to the typical 4-6 months of supply we’d like to see for a market that doesn’t favor buyers or sellers. The Months Supply of Inventory (MSI) metric takes the number of homes for sale divided by the average number of sales over the preceding 12 months.
Despite the increase in supply, sellers continue to realize great sales prices for their homes. The 12-month rolling median sales price continued its climb in November, reaching $367,045, an 18.8% increase over 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.
With 28 closings for the month, sales were down 20.0% compared to November 2020, and the third consecutive month of year-over-year declines — a stat we’ll continue to monitor to see if it develops into a trend.
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.
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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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.
Of course, the real estate market has never been truly stable and I think that it is a typical state of affairs, but despite this fact, I am certain that we will always observe a demand for housing which, from my point of view, will decrease by insignificant indicators. Also, I think that offers on a property will be on a permanent basis and the market will always be teeming with them. Of course, it is justified by different factors and it has certain reasons. From my point of view, it is so cool that sales in Elmore County were up 30.8% compared to November 2020, achieving new indicators and reaching a new level. In any way, this is progress and a kind of breakthrough. I hope that it will only move forward and indicators will increase without regress.